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RADIO 2.0 PRESENTED BY BILL BERGH, C.R.M. ACCOUNT MANAGER bill bergh marketing ltd.
OVERVIEW Today’s Consumer Branding Why Radio/Expert Opinions The Numbers Two Approaches to Buying Creative Dominating a market Creating a “cult” The Impact of New Media The Future
CORNER GAS DRUG STORE BARBER SHOP HARDWARE STORE VARIETY STORE DRY CLEANER SHOE REPAIR FLOWER SHOP GROCERY BAKERY The ‘Burbs1960
MEDICAL BANK TIM HORTONS GREEK TAKEOUT NEIGHBOURHOOD PUB ASIAN TAKEOUT TIRE/AUTO SERVICE The ‘Burbs Today
MEDICAL BANK WITHIN 1 KM Restaurants: Boston Pizza Little Caesars Woody’s Tap House White Hart Manor Pub Sammy’s Pizza Wonder’s From China Second Cup A & W Dairy Queen TIM HORTONS GREEK TAKEOUT NEIGHBOURHOOD PUB ASIAN TAKEOUT The ‘Burbs Today TIRE/AUTO SERVICE
MEDICAL BANK WITHIN 1 KM As well as: Calgary Co-op Shopper’s Drug Mart 7-11 More Convenience Shell Snacks Shell Select Liquor Depot Solo Liquor Husky C-store Blockbuster TIM HORTONS GREEK TAKEOUT NEIGHBOURHOOD PUB ASIAN TAKEOUT The ‘Burbs Today TIRE/AUTO SERVICE
Time versus Money TIME MONEY 1960
Time versus Money TIME MONEY 2010
The Best Buy Research
The Best Buy Research Best Buy found that 20% of their customers we responsible for virtually all of the transactions in which the company lost money These customers only bought the products that were on sale. Some of these customers were actually buying from Best Buy and selling the product at a profit on Ebay. The bulk of Best Buy’s profit came from an entirely different 20% of their customers. Best Buy has 100 pilot stores that are designed to eliminate the non-profitable customers and cater to the profitable ones. These stores are posting sales gains almost double the gains of traditional Best Buy stores. CEO Brad Anderson says a company should see itself as a “portfolio of customers not product lines”
Several years ago Zellers had to change strategy. They had been having big sale events with extremely low prices. They would constantly sell out of the featured items. The regular customers were drifting away because the essentials were often “out of stock.” They also had a supply system that was constantly trying to cope with large volume bubbles working through the system.
HOLE IN THE WALL CARPET The owner says “Everybody is a price shopper.”
X X X X X O O O O O
TRANSACTIONAL BUYERS Focus on price, savings or added value treat products and services as commodities have a low need to trust suppliers have a low loyal to suppliers each transaction is separate from previous transactions see themselves as the “expert” fear of loss is focused on the price difference between suppliers like the negotiation process and are not concerned about the time it takes
RELATIONAL BUYERS Focus on value and product augmentation differentiate between product and service offerings have a high need to trust suppliers have a high loyalty to suppliers they trust each transaction is seen as part of the ongoing relationship see the supplier as the “expert” and the source of information fear of loss is the entire amount of money and time invested dislike the negotiation process and the time it takes
WINNING CUSTOMERS TRANSACTIONAL Be the low cost supplier sale, sale, sale coupon extra value features and services at no charge offer something for free RELATIONAL Build trust retain current customer and ask them for referrals emphasize value and differentiation find ways for consumers to save time offer ways for consumers to minimize risk build your “brand”
BUILD YOUR BRAND!
POWER IN BRANDING
BRANDING Brands help consumers make buying choices with minimal risk. Brands help consumers making buying choices that save time. Consumers will pay more for the brand. Companies with strong brands have higher value. People trust brands. People buy brands. Branding speaks to the “Relationship” customer.
RADIO THE BRANDING MEDIUM
THE WIZARD OF ADS
WHO IS THE WIZARD His name is Roy H. Williams and he came to prominence about fifteen years ago. American Express was conducting a study to identify the fifty fastest growing small business in America. When they identified their top fifty, they learned that twenty-eight of these businesses used Williams Marketing as their adverting agency. They changed the focus of the article for their card holder’s newsletter and wrote about Roy Williams and his amazing successes.
“Roy Williams is a genius. Be prepared for a book that will challenge your thinking, make you smile, touch your heart, and fatten your pocketbook.” Jay Conrad Levinson, author of Guerilla Marketing “Up until I read The Wizard of Ads the most defining moment in my life was when I stood on the summit of Alaska’s Mt. McKinley, the tallest mountain in North America. But, now I have to add reading The Wizard of Ads.” Jim Huebner WHAT ARE THEY SAYING ABOUT THE WIZARD?
Limited-time offers don’t work better and better as time goes by. In truth, they work worse and worse. Invest your ad dollars in a “long, slow, tedious” branding campaign that will work better and better as time goes by. The greatest fool who ever lived is the one who first said, “One picture is worth a thousand words.” Words are the most powerful force there has ever been. WHAT DOES THE WIZARD SAY?
The real power of radio, ... is long-term memory, or “top of mind awareness.” Smart advertisers are those that set out to win the customer’s heart long before she needs the product. Their only goal is to be the company she thinks of first and feels the best about when the need arises. Smart advertisers make no attempt to predict the moment of the customer’s need but buy enough repetition to ensure they will immediately spring to mind whenever the need arises. WHAT DOES THE WIZARD SAY?
WHAT ARE OTHERS SAYING ABOUT RADIO? Radio is warm and personal. And you have to understand, I think, that people listen to their radios alone. It is very much a personal experience. They are in their cars or in their kitchens doing their dishes and you are very much talking to one person. Tom Bodett God’s gift to radio is that people are born without earlids. Unknown Radio is word-of-mouth advertising evolved to its highest level. Tom Haymond “The car is a radio on wheels.” Unknown
People have less and less time for “fixed-attention media”. — Jack Trout
OUT OF THE BOX Sterling McCall Toyota, Houston, changed their media mix with great results. They now spend 97% of their new car budget on radio and have become the number fourToyota dealer in the U.S.
AN EXPERT OPINION Advertising Consultant, Gary (Rod) Rademacher uses an income statement analysis when working with clients to determine what works for them. He says, “This income statement analysis shows us that on the local level, if a business wants to attract new customers, long term nothing beats radio. I’m saying nothing! We’re talking about that it beats newspaper and it beats television and I can prove it!”
THE NUMBERS Measurement conducted by BBM Three surveys per year Recruiting Diary keeping Collection and processing Publishing
How PPM Works (in 3 Steps!) Each radio and/or television signal is encoded with a unique inaudible code Panelists carry their meter from “rise to retire” and are awarded “points” for their carry-time Panelists dock their meter at night before bedtime and the data is collected by the Household Hub and sent to BBM for processing
BUYING RADIO Traditional method Radio math Reach/frequency/GRP’s Optimum Effective Schedule (OES) Based on Coleman Research study 8 times more effective Repetition and concentration Calculate turnover Multiply by a “constant”
GREAT COMPANIES DOMINATE: Price Wal-Mart Experience Disney, Pike Place Fish Market Service Moving Medics, CEO Class, Nordstrom, Mezza Luna Access 7 Eleven, McDonald’s Product Volvo, Apple
THREE THINGS YOUR ADVERTISING MUST ACCOMPLISH Tell consumers who you are. Tell consumers what you sell. Tell consumers why they should do business with you.
THE FUTURE Consolidation The U.S. Experience The state of Canada’s radio industry Digital Broadcasting Internet Radio Satellite Radio