Is Down Twenty the New Up: A Strategic Marketing Inquiry
The current economy requires new standards for measuring success. For years, companies have measured against prior year levels. Today, companies have turned to measuring themselves against one another.
“Many say the market is down 30%; hence being down only 20% is, nowadays, considered being ‘up’,” said Terry Murphy, president of Strategic Marketing. “Times are changing, and because metrics are the base point of every business, we must keep abreast of the newest, latest and greatest way to measure metrics.”
So how do you find the “new up?” Patric Barwise, a professor at the London School of Business, says, “The most successful companies maximize long-term shareholder value by maintaining their advertising investment when the economy slows down and weaker competitors cut back.”
Economic times are tough in every industry; however it is no secret that advertising budgets are often the first ones cut. Advertising is a choice. Either advertise now to grow business in the future, or cut advertising and therefore current and future business. Like most things in life, if you give a little, you get a lot in return. This is true more than ever in the world of advertising today.
McGraw-Hill Research conducted a study of U.S. recessions from 1980 to 1985. Out of the 600 business-to-business companies analyzed, the ones that continued to advertise during the 1981 to 1982 recession achieved an average 256% growth by 1985 over their competitors that eliminated or decreased spending.
“An overwhelming majority of American executives (86%) agreed that companies that advertise in a down economy stay more top-of-mind when purchase decisions are made, and create more positive impressions about the commitment to their products and services,” says Guy Conserdine, an independent media consultant.
Okay, we know, you get the point … you need to advertise. You may be down compared to last year, but down twenty is the new up. “If the pie is getting smaller, you need to grab a bigger piece of it,” said Murphy. “The best way to do that is through aggressive and well-strategized marketing.”
Thursday, February 18, 2010
Wednesday, October 28, 2009
You just can't track social media influencers...but wait..now you can
Jennifer Van Grove of Mashable, a social media information giant, exposes the new product from Traackr that helps marketers find influential voices online. 
The term brand ambassador has taken on a whole new meaning. So how exactly does this new product work? Traacker's new "Online Authority List" is essentially a who's who in online journalism. The kicker is however, the fact that this product can drill down influencers by specfic campagin initatives. The Authority List grades and rates authors by their reach (how far stories travel), resonance (how well they perform), and their relevance(how related they are to the search criteria). Influencers can also be viewed by location and type- activists, reporters, experts (Van Grove, Sept. 09, 2009).
The term brand ambassador has taken on a whole new meaning. So how exactly does this new product work? Traacker's new "Online Authority List" is essentially a who's who in online journalism. The kicker is however, the fact that this product can drill down influencers by specfic campagin initatives. The Authority List grades and rates authors by their reach (how far stories travel), resonance (how well they perform), and their relevance(how related they are to the search criteria). Influencers can also be viewed by location and type- activists, reporters, experts (Van Grove, Sept. 09, 2009). Many in the world of advertising, PR and marketing, know that social influencers are important, but have no idea how to identify the big players. Now, tracking PR results has shown itself to be within reach.
Wednesday, September 23, 2009
Advertising is Important Now More Than Ever
Brit Hume, Senior Political Analyst for FOX News, has been quoted as saying, “Nobody's profitable at this moment, because recession is on; advertising dollars are down, and expenses are way up. So that kind of belies the situation that you would expect, because the ratings are way up everywhere.”
But why …?
Let’s begin by asking a slightly different question first: what do GE, HP, Disney and Microsoft have in common? They were all started during steep declines in the U.S. economy. AND, they kept going strong, through advertising that is.
“Generally speaking, those companies that not only survived but also thrived during the Great Depression were those that continued to act as though there were nothing wrong and that the public had money to spend. In other words, they advertised,” said Dave Chase CMO of Altus Alliance.
In an unprecedented time of job loss and extended unemployment benefits, it can sometimes be difficult to see past paying tomorrows bills, but remember- invest in the future, it pays big dividends.
Ok, so you need to advertise- but where? Television, radio, on-line, it can all be a bit overwhelming. This is where your agency comes in. Advertising agencies are experts not only on the subject, but on your market. They know what works with your target demographic- or if you don’t even know what that is, they can help you determine it. You wouldn’t ask your friend to do open heart surgery on you, would you? (unless of course said friend is a cardiovascular surgeon) Then why rely on your own devices to place your media, or decide what, how, where and when to utilize what type of media?
Consumers have not stopped spending- they are just looking for better deals. Remember: everything is on sale.
So here is your anwser the "but why ... ?" Why television is the new radio.
During the Great Depression, Proctor and Gamble increased their spending and brought their message into more homes than ever before through radio. Procter and Gamble became a pioneer. They had discovered how to effectively use the medium of radio.
Today, with falling incomes the topic of pub conversations around the world, belts are tightening. This means that more, and more, people are staying in to partake in the entertainment they are already paying for- television. The radio programs of yesteryear have been replaced with CSI, Dancing with the Stars and American Idol. So, it comes as no surprise that television ratings are soaring.
So, let’s put this all into perspective: viewing rates are higher than ever and costs to purchase television advertising are more affordable than ever, now is the time to invest a little in your future.
But why …?
Let’s begin by asking a slightly different question first: what do GE, HP, Disney and Microsoft have in common? They were all started during steep declines in the U.S. economy. AND, they kept going strong, through advertising that is.
“Generally speaking, those companies that not only survived but also thrived during the Great Depression were those that continued to act as though there were nothing wrong and that the public had money to spend. In other words, they advertised,” said Dave Chase CMO of Altus Alliance.
In an unprecedented time of job loss and extended unemployment benefits, it can sometimes be difficult to see past paying tomorrows bills, but remember- invest in the future, it pays big dividends.
Ok, so you need to advertise- but where? Television, radio, on-line, it can all be a bit overwhelming. This is where your agency comes in. Advertising agencies are experts not only on the subject, but on your market. They know what works with your target demographic- or if you don’t even know what that is, they can help you determine it. You wouldn’t ask your friend to do open heart surgery on you, would you? (unless of course said friend is a cardiovascular surgeon) Then why rely on your own devices to place your media, or decide what, how, where and when to utilize what type of media?
Consumers have not stopped spending- they are just looking for better deals. Remember: everything is on sale.
So here is your anwser the "but why ... ?" Why television is the new radio.
During the Great Depression, Proctor and Gamble increased their spending and brought their message into more homes than ever before through radio. Procter and Gamble became a pioneer. They had discovered how to effectively use the medium of radio.
Today, with falling incomes the topic of pub conversations around the world, belts are tightening. This means that more, and more, people are staying in to partake in the entertainment they are already paying for- television. The radio programs of yesteryear have been replaced with CSI, Dancing with the Stars and American Idol. So, it comes as no surprise that television ratings are soaring.
So, let’s put this all into perspective: viewing rates are higher than ever and costs to purchase television advertising are more affordable than ever, now is the time to invest a little in your future.
Wednesday, August 5, 2009
Are You Branded?
No, this is not a flash back to slap bracelets and NKOTB (New Kids on The Block, for the uncouth), but popularity, image, and reputation are the key factors to score in this game. So if this isn’t high school, then what gives, you ask?
Well, this game is a lot like high school actually, it’s the game of winning the customer. Tom Gable, a PRSA Fellow, gives insight into the eight key areas that any company can use to incorporate image as a part of their corporate strategy to win the customer.
Gable suggests the first step is to “analyze the competition”. What’s there, what’s not, and more importantly, how can you differentiate your business? Next, Gable suggests establishing your core values and positioning. Most of you are thinking, “Well isn’t that what our mission statement is for?” Yes and no.
One must focus specifically on whether you are truly providing supporting evidence of these values and positioning. Furthermore, it is suggested in the article by Gable, that one must target multiple external audiences. He states that, “Building a reputation with multiple audiences is mandatory since no audience operates in isolation.” Also, it is important to create a compelling vision and evocative messages. One must do this however while bearing in mind the importance of building relationships in the process, Gable purveys.
More over, one must draw a strategic road map. Taking a broad spectrum picture into consideration can be difficult especially when a company is struggling to stay afloat, but it is necessary for long term success and vitality. Just as no solider would go into battle without his appropriate weapons; no business must attempt to wage a branding war without the proper ‘tactical tool kit,’ as the phrase is coined by Gable. One must adequately prepare themselves to reach each goal and segment.
Metrics are the quintessence of all successful campaigns. Hard, fast numbers make your efforts a reality. A more difficult endeavor however is to perform a qualitative analysis at regular intervals, allowing insurance that the desired reputation is penetrating the appropriate markets.
Finally, businesses must conduct ongoing reality checks states Gable. These checks allow the company to ensure that they are reaching their constituents, and not just themselves, he says.
Unlike high school, the grown-up world is one that requires taking a look at the big picture often, as well as the visible things around you. Do you have a branded reputation, and how did you get it, and is it your ‘kind’? If not, it’s time to start “ThinkingStrategic" !
Check out Gable’s article from the PRSA website
Well, this game is a lot like high school actually, it’s the game of winning the customer. Tom Gable, a PRSA Fellow, gives insight into the eight key areas that any company can use to incorporate image as a part of their corporate strategy to win the customer.
Gable suggests the first step is to “analyze the competition”. What’s there, what’s not, and more importantly, how can you differentiate your business? Next, Gable suggests establishing your core values and positioning. Most of you are thinking, “Well isn’t that what our mission statement is for?” Yes and no.
One must focus specifically on whether you are truly providing supporting evidence of these values and positioning. Furthermore, it is suggested in the article by Gable, that one must target multiple external audiences. He states that, “Building a reputation with multiple audiences is mandatory since no audience operates in isolation.” Also, it is important to create a compelling vision and evocative messages. One must do this however while bearing in mind the importance of building relationships in the process, Gable purveys.
More over, one must draw a strategic road map. Taking a broad spectrum picture into consideration can be difficult especially when a company is struggling to stay afloat, but it is necessary for long term success and vitality. Just as no solider would go into battle without his appropriate weapons; no business must attempt to wage a branding war without the proper ‘tactical tool kit,’ as the phrase is coined by Gable. One must adequately prepare themselves to reach each goal and segment.
Metrics are the quintessence of all successful campaigns. Hard, fast numbers make your efforts a reality. A more difficult endeavor however is to perform a qualitative analysis at regular intervals, allowing insurance that the desired reputation is penetrating the appropriate markets.
Finally, businesses must conduct ongoing reality checks states Gable. These checks allow the company to ensure that they are reaching their constituents, and not just themselves, he says.
Unlike high school, the grown-up world is one that requires taking a look at the big picture often, as well as the visible things around you. Do you have a branded reputation, and how did you get it, and is it your ‘kind’? If not, it’s time to start “ThinkingStrategic" !
Check out Gable’s article from the PRSA website
Colgate Sees Results from Increased Advertising
This article is evidence that advertising does work! Colgate has significantly increased their marketing budget, and the results have been very successful.
New products and more advertising have boosted Colgate-Palmolive’s business worldwide and generated record-high profit margins. The consumer-products giant’s shares are outperforming the market and should continue to soar.
A toothpaste maker may not have the appeal of a high-tech stock, but its profits certainly do.
Consider consumer-products giant Colgate-Palmolive, which today said:
• quarterly earnings per share grew 13%,
• gross margins rose to a record high 57.4%,
• their share of the toothpaste market grew to 14.9%, and
• the company’s share of the manual toothbrush jumped to 25.8%, an all-time high.
What makes the story even more compelling is that Colgate’s success is happening in every geographic region and across all product lines. In fact, the company posted double-digit volume growth in every region outside North America. Bolstered by a slew of new products and its aggressive ad campaign, the company’s share of the Latin American toothpaste market rose to a record 75.1%. Colgate is also making inroads into such high-growth markets as India and China.
Stock outperforming S&P 500
Even better, consider that the stock has gained 18% over the past year and 57% over the last 30 months. By contrast, the S&P 500 Index is up by 14% and 35%, respectively. With Colgate delivering steady double-digit growth and the stock on the verge of breaking to a new 52-week high, its shares should continue to outperform the market.
Assuming a price multiple of 25 times earnings, slightly below what Colgate has traded at recently and considerably below the industry average of 32 times, the stock has upside over the next nine to 12 months to the $83 area, or 22% above current levels. Longer term, look for a move to the mid-$90s. Toss in a dividend yield of more than 2.13% and those are some pretty attractive returns for a stodgy old consumer-products company.
http://articles.moneycentral.msn.com/Investing/StreetPatrol/ColgateStodgyCompanyButStockIsSexy.aspx
For your advertising to stand out, it must be distinct, understandable and memorable. Great creative work should exist to establish your image and produce award-winning results.
Strategic Marketing has a distinguished track record of producing results for our clients. Clients benefit from our experience in and understanding of media and our ability to garner the most value for their investment. For more information, call as at 561.688.8155 or visit http://thinkstrategic.com/.
New products and more advertising have boosted Colgate-Palmolive’s business worldwide and generated record-high profit margins. The consumer-products giant’s shares are outperforming the market and should continue to soar.
A toothpaste maker may not have the appeal of a high-tech stock, but its profits certainly do.
Consider consumer-products giant Colgate-Palmolive, which today said:
• quarterly earnings per share grew 13%,
• gross margins rose to a record high 57.4%,
• their share of the toothpaste market grew to 14.9%, and
• the company’s share of the manual toothbrush jumped to 25.8%, an all-time high.
What makes the story even more compelling is that Colgate’s success is happening in every geographic region and across all product lines. In fact, the company posted double-digit volume growth in every region outside North America. Bolstered by a slew of new products and its aggressive ad campaign, the company’s share of the Latin American toothpaste market rose to a record 75.1%. Colgate is also making inroads into such high-growth markets as India and China.
Stock outperforming S&P 500
Even better, consider that the stock has gained 18% over the past year and 57% over the last 30 months. By contrast, the S&P 500 Index is up by 14% and 35%, respectively. With Colgate delivering steady double-digit growth and the stock on the verge of breaking to a new 52-week high, its shares should continue to outperform the market.
Assuming a price multiple of 25 times earnings, slightly below what Colgate has traded at recently and considerably below the industry average of 32 times, the stock has upside over the next nine to 12 months to the $83 area, or 22% above current levels. Longer term, look for a move to the mid-$90s. Toss in a dividend yield of more than 2.13% and those are some pretty attractive returns for a stodgy old consumer-products company.
http://articles.moneycentral.msn.com/Investing/StreetPatrol/ColgateStodgyCompanyButStockIsSexy.aspx
For your advertising to stand out, it must be distinct, understandable and memorable. Great creative work should exist to establish your image and produce award-winning results.
Strategic Marketing has a distinguished track record of producing results for our clients. Clients benefit from our experience in and understanding of media and our ability to garner the most value for their investment. For more information, call as at 561.688.8155 or visit http://thinkstrategic.com/.
Target Your Clients- Strategies for Bringing Busines
Without a marketing plan, your business is going nowhere fast. But as a small business owner, you don’t have time to devise complex marketing strategies for your products. Instead, you can tap into a few simple strategies that have already proven their worth.
Many small business owners mistakenly confuse marketing strategies with ad campaigns. A marketing strategy is a plan or an approach for marketing your products and services. An ad campaign, on the other hand, is the means by which your marketing strategy is accomplished. Your objective is to tie your advertising efforts into a comprehensive marketing strategy that has been carefully designed to attract attention in the marketplace.
Some marketing strategies are created for the purpose of capturing a certain segment of the market, but the majority of small business strategies are more generic in nature. Even so, it’s important to understand what your strategy is trying to achieve.
Boost Consumer Confidence
Consumers are fickle and frequently hesitant to buy a product they know little about. If your business or products are new to the area, you could create a marketing campaign that emphasizes the quality and value of your products. The resulting boost in consumer confidence will likely translate into more action at the cash register.
Create Awareness
Another way to spark interest for your products is to conduct a campaign designed to promote your products in as many ways as possible. In other words, your marketing strategy could be to create buzz by blanketing the local airwaves, print space, and other advertising mediums with your name, logo, and products. Increased awareness will definitely bring more people into your store, but it also costs money, so you should be prepared to increase your advertising budget to pull it off.
Leverage Emotions
No matter what they say, the buying decision is emotional for many customers. Large corporations spend millions of dollars playing on their customers’ emotions and what works for them can work for you, too. The key is to create a campaign that compels consumers to buy your products.
Overcome Objections
The task of overcoming a buyer’s objections is usually assigned to the sales team. However, a well-crafted marketing campaign can work toward overcoming your customers’ buying obstacles before they walk in the door. A marketing strategy that emphasizes warranties, testimonials, endorsements, and other positive reinforcement devices can not only make the buying decision easier for existing customers, but also attract new customers who hadn’t previously considered buying from your business.
Set a Deadline
Why do so many ads emphasize the date the sale ends? Because people respond to deadlines. Marketing strategies designed around the idea of limited supplies, temporary price reductions, or other mechanisms that create a sense of urgency can provide a quick influx of customers and can potentially jumpstart a business suffering from a diminished customer base.
http://www.gaebler.com/Examples-of-Marketing-Strategies.htm
While it might be tempting to cut your marketing budget when times get tough, this could be extremely detrimental to your business in the long run. This is one of the reasons it is vital that you continue to market in a recession.
Strategic Marketing has a distinguished track record of producing results for our clients. Whether you need assistance with a special project or a complete marketing overhaul, give us a call or visit http://www.thinkstrategic.com/.
Many small business owners mistakenly confuse marketing strategies with ad campaigns. A marketing strategy is a plan or an approach for marketing your products and services. An ad campaign, on the other hand, is the means by which your marketing strategy is accomplished. Your objective is to tie your advertising efforts into a comprehensive marketing strategy that has been carefully designed to attract attention in the marketplace.
Some marketing strategies are created for the purpose of capturing a certain segment of the market, but the majority of small business strategies are more generic in nature. Even so, it’s important to understand what your strategy is trying to achieve.
Boost Consumer Confidence
Consumers are fickle and frequently hesitant to buy a product they know little about. If your business or products are new to the area, you could create a marketing campaign that emphasizes the quality and value of your products. The resulting boost in consumer confidence will likely translate into more action at the cash register.
Create Awareness
Another way to spark interest for your products is to conduct a campaign designed to promote your products in as many ways as possible. In other words, your marketing strategy could be to create buzz by blanketing the local airwaves, print space, and other advertising mediums with your name, logo, and products. Increased awareness will definitely bring more people into your store, but it also costs money, so you should be prepared to increase your advertising budget to pull it off.
Leverage Emotions
No matter what they say, the buying decision is emotional for many customers. Large corporations spend millions of dollars playing on their customers’ emotions and what works for them can work for you, too. The key is to create a campaign that compels consumers to buy your products.
Overcome Objections
The task of overcoming a buyer’s objections is usually assigned to the sales team. However, a well-crafted marketing campaign can work toward overcoming your customers’ buying obstacles before they walk in the door. A marketing strategy that emphasizes warranties, testimonials, endorsements, and other positive reinforcement devices can not only make the buying decision easier for existing customers, but also attract new customers who hadn’t previously considered buying from your business.
Set a Deadline
Why do so many ads emphasize the date the sale ends? Because people respond to deadlines. Marketing strategies designed around the idea of limited supplies, temporary price reductions, or other mechanisms that create a sense of urgency can provide a quick influx of customers and can potentially jumpstart a business suffering from a diminished customer base.
http://www.gaebler.com/Examples-of-Marketing-Strategies.htm
While it might be tempting to cut your marketing budget when times get tough, this could be extremely detrimental to your business in the long run. This is one of the reasons it is vital that you continue to market in a recession.
Strategic Marketing has a distinguished track record of producing results for our clients. Whether you need assistance with a special project or a complete marketing overhaul, give us a call or visit http://www.thinkstrategic.com/.
Why You Should Market in a Recession
There’s no more exciting time to be in the advertising business than during a recession. All great enterprises move forward in a recession, and the weaklings move back. The dumbbells cut back on advertising. The smart people don’t.” ~Ed McCabe
Studies have shown that there is a potential downside of cutting back in a recession–no longer having brand recognition when the recession ends. While it might be tempting to cut your marketing budget first when times get tough, this could be extremely detremental to your brand in the long run. This is one of the reasons it is vital that you continue to market in a recession.
It is important to remember that, when it comes to brands, absence does not make the heart grow fonder. Consumers are quick to forget you. It will cost you more money in the long run if you have to start over than if you had continued steadily. Data shows that when brands stopped spending on communications for six months or more, brand usage and image declined by 13% (Millward Brown, April 2008).
HOW TO MARKET IN A RECESSION:
Use the recession to your advantage: During the Superbowl, many of the typical brands who advertised withdrew, opening the door for others to catch consumer’s attention. This should be a lesson learned. Tough times open up possibilities and allow you to gain a greater share of voice when there is less noise to contend with.
Change channels. Use a recession to re-evaluate the media channels you are using to target consumers. As budgets shift, the need to find innovative channels should shift as well, opening up new doors that may cost less money and be more dynamic. Look for new avenues to build brand recognition, whether it is launching a marketing campaign via social networking or creating a variety of viral videos on YouTube.
Love the ones you’re with. Spend less time finding new customers and more time keeping your current customers happy. With everyone feeling more vulnerable, it is vital that you don’t take your customers for granted and focus on how to keep them loyal to the brand.
Make a Plan. While it’s too late to make a pre-recession plan, don’t forget to work on a post-recession plan. You will need to know how to capture the attention of consumers once they start spending again.
For more tips on how to market in a recession, visit: www.thinkstrategic.com.
Studies have shown that there is a potential downside of cutting back in a recession–no longer having brand recognition when the recession ends. While it might be tempting to cut your marketing budget first when times get tough, this could be extremely detremental to your brand in the long run. This is one of the reasons it is vital that you continue to market in a recession.
It is important to remember that, when it comes to brands, absence does not make the heart grow fonder. Consumers are quick to forget you. It will cost you more money in the long run if you have to start over than if you had continued steadily. Data shows that when brands stopped spending on communications for six months or more, brand usage and image declined by 13% (Millward Brown, April 2008).
HOW TO MARKET IN A RECESSION:
Use the recession to your advantage: During the Superbowl, many of the typical brands who advertised withdrew, opening the door for others to catch consumer’s attention. This should be a lesson learned. Tough times open up possibilities and allow you to gain a greater share of voice when there is less noise to contend with.
Change channels. Use a recession to re-evaluate the media channels you are using to target consumers. As budgets shift, the need to find innovative channels should shift as well, opening up new doors that may cost less money and be more dynamic. Look for new avenues to build brand recognition, whether it is launching a marketing campaign via social networking or creating a variety of viral videos on YouTube.
Love the ones you’re with. Spend less time finding new customers and more time keeping your current customers happy. With everyone feeling more vulnerable, it is vital that you don’t take your customers for granted and focus on how to keep them loyal to the brand.
Make a Plan. While it’s too late to make a pre-recession plan, don’t forget to work on a post-recession plan. You will need to know how to capture the attention of consumers once they start spending again.
For more tips on how to market in a recession, visit: www.thinkstrategic.com.
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