MARKETING
Strategies for Tighter Times
Put cost-conscious customers at ease by emphasizing these
eight concepts in your marketing messages.
THERE’S NO ABSENCE of words
to live by. They range from offering good advice, “On the keyboard
of life, always keep one finger on the escape key” to the deviously
practical, “By the time you can make ends meet, they move the ends.”
Sales and marketing professionals, who must do battle in an economic
environment where all types of buyers are bedeviled by financial
pressures, can benefit from words to work by. Here’s a checklist of
eight words that send the right message to today’s customers:
1. Security. Avoiding unnecessary risk is on everyone’s mind.
Today, even seemingly small mistakes can lead to unemployment. You
know the environment is treacherous when high visibility CEOs head
for a last limo ride.
“What are the implications if I make this buying decision?” is the
common question. That’s why addressing this concern with customers
is key to closing sales. It’s a lesson straight out of the IBM
playbook of the late eighties and early nineties. Because the brand
was so highly regarded, buyers felt safe buying IBM. It’s also why
the Toyota Matrix has outsold the Pontiac Vibe, even though they
came off of the same assembly line. The Toyota brand is held in
higher regard.
From the get-go, work on helping customers understand why it’s safe
to buy your product or service.
2. Agility. In Blown to Bites, the authors point out that a
lack of “legacy systems, legacy assets and a legacy mindset” gives
companies the advantage today. Contrary to how it might seem, two of
the most agile industries are real estate and restaurants. Rather
than stand by and hope for the best, both responded quickly and
creatively to the economic slowdown.
Instead of trying to talk consumers into changing their thinking
about the housing situation, real estate companies changed their
advertising almost instantly. In print and on the Internet, ads
featured much lower priced homes in many communities. They didn’t
need headlines to say that prices were dropping; they portrayed the
story.
So, too, from fast food to fine dining, restaurants began
advertising interesting menus at lower prices. They created buzz by
bringing consumers something “new and different” without
discounting.
Instead of wait and die, the strategy should be to move quickly and
survive.
3. Productivity. “In the coming era,” writes Kevin Kelly of
Wired magazine, “doing the exactly right next thing is far more
fruitful than doing the same thing twice,” which may be the only
definition of productivity that really makes sense today. It
suggests that the “doing-it-right” mentality is dangerous, dead-end
thinking. It inevitably leads to the conclusion that once we get it
right (whatever that happens to be), that is enough.
There’s a powerful message here for marketing and sales. Namely,
position your product or service in terms of continuous productivity
improvement. “We’re not only going to help you increase productivity
now, but here’s how we are going to help you over the longer term.”
A dramatic example of this approach is the Apple iPhone. From the
start, it has been portrayed as a self-improving product, rather
than “here’s the latest and the greatest gizmo,” which is the usual
approach.
4. Convenience. Inchworm shoes for kids are actually three
sizes in one shoe. When the shoe is shown to a group, everyone with
children asks, “Where can I get them?” No one asks about the price.
The Inchworm message is clear: convenience — no more running to the
shoe store every six weeks.
With time in as short supply as money, anything that helps eliminate
inconvenience sends a powerful message to buyers.
5. Leadership. It didn’t take long for auto manufacturers to
jump on the hybrid bandwagon. But so far, Toyota, the first to come
out with dual-energy vehicles, is the perceived leader. Toyota
hybrids deliver on the promise of greater fuel efficiency,
illustrating that leadership is all about performance. When it comes
right down to it, we recognize leadership when we see it, not when
someone talks about it.
Whether it’s delivering on promises or helping buyers be more
successful, the task is to draw a picture of leadership that
captivates customers.
6. Savings. Whenever we buy from a salesperson, there’s a
gnawing fear that the purchase will benefit the person making the
sale more than the buyer. Today, this fear seems even more
pervasive.
Unless a salesperson makes a point of addressing the cost-saving
benefits of the purchase, the sale is probably in jeopardy. Take
computer monitors as an example. Surveys reveal that no matter how
you measure productivity, adding a second monitor gives workers a
productivity boost of 20% to 30%, according to Jon Peddie Research.
In any size office, the savings mean more work from fewer employees.
The goal today is to help customers understand how making
appropriate purchases can be the right step for reducing their total
operating costs.
7. Reliability. Whether it’s a trend is not clear, but some
companies that jumped into outsourcing help desk services overseas a
few years ago are bringing them home and for good reason: customers
complained that the service was unreliable.
In the same way, Circuit City fired its competent, well-trained and
highest paid hourly salespeople to cut costs, and replaced them with
young, poorly trained part-timers. Is there a connection between the
arrival of an unreliable work force and the company’s serious
financial problems?
Whether it’s the reliability of equipment or service, showing
customers that they can count on you is the key to continuing sales.
8. Value. A man whose father died when he was a kid looked
back on his childhood with some amazement. “My mother and I were
poor by any standards,” he relates. “Yet, she bought me expensive
Selby Arch Preserver shoes. She said they were better for my feet
and didn’t wear out so fast.” Even when many people are buying down,
there is a significant segment who relate to value. They want their
purchases to last.
Words count because they often symbolize crucial issues and words
that capture what customers are thinking can help keep us focused on
the right issues — if we want to make sales in even tighter times.
John R. Graham is president of Graham Communications, a marketing
services and sales consulting firm in Quincy, MA. He writes for a
variety of business publications and speaks on marketing and sales
issues. Contact him at 617-328-0069; jgraham@grahamcomm.com.
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T R E N D S
Do-it-yourself online display ads
While small businesses have been using search engine’s online text
ads for some time now, online display advertising has been the realm
of larger companies with big budgets. But now start-ups and major
Internet players such as Facebook Inc. are giving advertisers the
option of planning, buying and tracking online-ad campaigns all on
their own.
The self-service options have the potential to bring huge numbers of
new advertisers and sites into online advertising, including small
firms that currently find it too difficult or expensive to advertise
online, or to advertise at all.
For example, Bonobos Pants, an online clothing company, wanted to
reach young men in the Chicago area who identified themselves as
Cubs fans. Using Facebook’s new self-service ad system, Bonobos
created ads that were seen more than 250,000 times. The pants
quickly sold out. And the total cost for the ads: about $63.
Facebook is only one of a rising number of self-service ad options.
There are new entrants such as AdReady Inc., AdBrite Inc. and
AdItAll LLC. MySpace, like Facebook, is offering do-it-yourself ads
that marketers can tailor to individual interests on the
social-networking site.
Source: WSJ.com, May 7, 2008
More small businesses forced to raise prices
If you’ve raised prices or are considering it due to higher costs,
you’re not alone. Inflation has sunk its teeth into small businesses
this year. The number of owners citing inflation as their No. 1
concern on the National Federation of Independent Businesses (NFIB)
monthly economic index in April was at its highest level since 1982.
One in five owners is raising prices, according to William C.
Dunkelberg, the trade group’s chief economist.
Officially, the U.S. government is indicating that inflation is in
check, and a recent report in April even suggests that inflation is
cooling. But they are taking into account the core inflation rate,
which excludes food and energy. On Main Street and in households
across America — where rapidly rising fuel and food prices are not
excluded — the picture is not so rosy.
“The Federal Reserve in its minutes says it is counting on the
recession to manage inflation,” Mr. Dunkelberg wrote in his summary.
“If we are in a recession, it is not getting the job done.”
To be sure, not every business is passing along the pain, but
certainly more owners are trying to raise prices this year if the
competition allows it. That trend has been reflected in the monthly
surveys of the NFIB this year.
Source: New York Times, May 22, 2008
Meet today’s 30-something woman
Like the female characters in that ‘80s angst-ridden TV show,
30-something women still grapple with the important issues of family
and work. However, based on recent surveys conducted by women’s
magazine Marie Claire, they also are more empowered consumers who
derive their strength not only from money but from knowledge.
According to the research, more than half named environmental issues
as concerns and about 25% favor fashion and beauty products that are
eco-friendly. Their main wellness concern is a healthful diet (63%)
followed closely by an active lifestyle (61%). However, nearly half
said they sacrifice sleep to save time and many said they struggle
to have enough energy to get through the day.
Three-fourths want a job they enjoy and find fulfilling, and 78% are
pursuing financial goals and retirement savings.
Though 90% cite supporting their family’s needs as a priority, some
85% say making time to refresh and recharge emotionally is
important. Yet 61% also cited their biggest challenge as finding
time to relax and unwind. Therefore, this time-crunched woman
appreciates companies that can make better use of her family and
personal time.
Source: Advertising Age, April 14, 2008
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N E W S
What customers look for when selecting a vendor
As business-to-business buyers become more cautious about spending,
it is more important than ever to have a great reputation. Today’s
buyer says that a company’s reputation is the most critical factor
when choosing a vendor or business partner, according to results of
Porter Positioning’s 2008 Key Motivators Business Survey.
Nearly 94% of respondents report that a company’s reputation is
“very important” when choosing a vendor or business partner, 65%
cite references as “very important” and 42% say proof of results are
“very important.”
Surprisingly, while 95% of respondents say that proven results are
“very important” or “preferred,” only 31% say they actually ask for
proof of results. Similarly, while 99% say references are “very
important” or “preferred,” only 66% say they usually ask for
references.
“This gap represents a huge opportunity for companies in competitive
markets,” said Emily Porter, Principal of Porter Positioning. “But
it also reveals that professionals can do more to ensure success
with their vendors.
“Reputation, references and results are powerful ways companies can
differentiate themselves from competitors,” she said. “Case studies
and testimonials are powerful indicators of success that can make or
break a decision when choosing a vendor. Even if these items aren’t
requested, companies should proactively provide them.”
Source: www.porterpositioning.com
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T I P S
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Including offers with your email “trigger messages” can provide
an ROI that’s nine times better than traditional batched messages, according
to a study by JupiterResearch. To clarify, triggered messages are the
automated messages that you likely send based on certain customer behaviors
such as placing an order, updating a profile or opting in to a newsletter.
They’re also commonly used for sending birthday messages, renewal alerts,
monthly billing notices or when the customer exceeds a threshold such as
loyalty points. With a little planning, you can create an automated
marketing system that produces compelling results.
Source: www.marketingprofs.com
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Online press releases are a great way to drive traffic to
your website, but only if you make them search-engine friendly.
Before submitting your news to a press release distribution service,
pick out the key phrases in your press release — your company’s
name, what you do, the name of whoever is quoted — and turn them
into links. Next, put your keywords in the first 65-70 characters of
your press release. That’s all that Google indexes. However, make
sure that your keywords only make up 2% to 5% of your content. Any
more and the search engines will think you’re trying to game the
system.
Source: www.bnet.com
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Impress prospects who send email inquiries by following up
with a video email. For example, when a car dealer received an
email from a woman asking about a car, he zipped off a personalized
follow-up video, filming the car in the showroom so she could see
the features she’d asked about. Her response: she drove three hours
that day to purchase the car. How could you offer this kind of
personal service?
Source: Internet Marketing Report, 370 Technology Dr., Malvern,
PA 19355
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Retain your top salespeople by binding them with golden
handcuffs. Compared to noncompete contracts, golden handcuffs
are a more positive alternative. Instead of a financial penalty,
they represent a potential financial reward. The best golden
handcuffs are custom-fitted to each salesperson’s hot button. For
example, lease a car for your salesperson. The trick is, you place
the lease in his or her name. You make the monthly payment, but he
or she has the legal obligation. If the employee leaves the company,
your payments cease. You can do the same thing with tuition
reimbursement. Another option is a deferred compensation or salary
continuation plan. You have many choices, from a straightforward
deferred compensation/disability agreement to some form of
retirement trust. Whatever plan you craft, you’ll want to work it
out with your attorney and accountant.
Source: www.thestreet.com
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Boost your direct mail response by adding a personalized URL.
Today, one in three prospects prefers to respond online to an
offline direct mail piece, says the Direct Marketing Association.
One of the best ways to take advantage of this trend is by adding a
personalized Web address such as www.johndoe.mycompany.com. When a
printing and graphics company tried this technique, 25% of the
recipients went to their URL. Another printing company invested $450
on a postcard campaign with personalized URLs. The result: $50,000
in new business.
Source: The Marketing Report, 370 Technology Dr., Malvern, PA
19355
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Can you imagine paying new employees to quit? Zappos, a
rapidly growing online shoe retailer, provides a four-week paid
training period that immerses call center recruits in the company’s
strategy, culture and obsession with excellent service. A week or
two into the training period, they make recruits an offer: “Quit
today and be paid for the time you’ve been in training, plus a $1000
bonus.” Zappos wants to learn up front if there’s low commitment.
Consider how much you’d be willing to pay to find out if there’s a
good fit between your company and new employees.
Source: www.harvardbusiness.org
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Want to reduce shipping fees? Just ask. Due to stagnant
growth, FedEx, UPS and DHL are all willing to negotiate contracts.
The companies won’t trumpet the price concessions, but they’re
willing to haggle if you know what to ask for. Focus on so-called
accessorial charges. You can knock off a host of add-ons, such as a
2% or higher fuel surcharge, insurance, fees for residential or
out-of-the-way deliveries that generally amount to 10% of package
drop-off charges plus extra charges for oversize parcels. Big
companies have the most clout to cut deals, but small companies that
regularly ship parcels shouldn’t think it’s a waste of time to
negotiate. Even the U.S. Postal Service is giving discounts. As of
May 12, the USPS will offer bargains on relatively short-distance
parcel deliveries.
Source: www.kiplinger.com
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Do demographic marketing research on the cheap. A new
website, ZIPskinny.com, let’s you type in any ZIP code and get U.S.
Census data for the area and neighboring ZIPs. The free service
includes data on income, education, occupation, marital status,
race, age and more.
Source: www.zipskinny.com
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If you extend credit to your customers, take steps to protect
yourself. First, make sure you don’t have significant
concentrations of credit. Any customer with over 20% of total
outstanding accounts receivable should be looked at carefully. Next,
consider transferring credit risk by selling invoices to a
nonrecourse factor. A factor is a company or bank that buys invoices
from credit-worthy customers. A nonrecourse factor assumes all the
credit risk when the invoice is sold. Alternatively, consider using
a business credit insurer. These insurance companies insure against
your customer’s inability to pay because of insolvency. Finally, be
wary about customers who suddenly want to move all their business to
you from your competitor. The competitor may have just put this
customer on COD.
Source: www.allbusiness.com
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