Presented by: Mr. Stacy Gentile President / CEO of Jordan Philips A Fresh New Look at Marketing / Advertising

It is a brandcentric world that we are living in… think of it as iPod Nation . If you create a brand that’s truly “unique” and “amazing” then you will have fanatical customers who will be willing to pay anything to be part of “who” you are.

About this presentation: Independent Data Talked to over 100 companies ($25MM-500MM) Plunkett’s Advertising Almanac Ad Age Gartner Accenture US Department of Labor American Marketing Association American Advertising Federation Newspaper Association Association of National Broadcasters Universal McCann Spencer Stuart Info USA The CMO Council CMO Magazine Forrester Research And Numerous books, articles and whitepapers

Talked to over 100 companies ($25MM-500MM)

Plunkett’s Advertising Almanac

Ad Age

Gartner

Accenture

US Department of Labor

American Marketing Association

American Advertising Federation

Newspaper Association

Association of National Broadcasters

Universal McCann

Spencer Stuart

Info USA

The CMO Council

CMO Magazine

Forrester Research

And Numerous books, articles and whitepapers

About this presentation: Anecdotal Information Tom Peters Seth Godin Hal Becker Jay Abraham Patricia Fripp Michael Treacy Chet Holmes Al Reis & Jack Trout Jack Morton Berndt Schmitt Numerous Real World Experiences

Tom Peters

Seth Godin

Hal Becker

Jay Abraham

Patricia Fripp

Michael Treacy

Chet Holmes

Al Reis & Jack Trout

Jack Morton

Berndt Schmitt

Numerous Real World Experiences

“ small changes to small things gets small results. The iPod Nation is about… BIG changes to BIG things and getting BIG results”

Discussion Topics 1. The Marketplace 2. Look at 2 different models 3. The 7 Secrets to Success 4. How a Credit Union went iPod

The iPodization of Your Marketplace

The iPodization of your marketplace: How Customers Decide Super Fast Super Informed Super Bad More choices and less time means its harder than ever to get your point across.

Super Fast

Super Informed

Super Bad

More choices and less time means

its harder than ever to get your point

across.

The iPodization of your Marketplace: Customer Choice Similar Payless Ford Folgers Casio Jones New York Steven Segal Green Bay, WI The Practice (abc) Spectacular Ferragamo Ferrari Starbucks Rolex Armani Brad Pitt Las Vegas, NV Survivor (cbs)

Similar

Payless

Ford

Folgers

Casio

Jones New York

Steven Segal

Green Bay, WI

The Practice (abc)

Spectacular

Ferragamo

Ferrari

Starbucks

Rolex

Armani

Brad Pitt

Las Vegas, NV

Survivor (cbs)

You Have 15 Seconds Why should we buy from you?

Most companies think they are unique but really… They are selling a SIMILAR product or service using a SIMILAR pitch with a SIMILAR price and SIMILAR support which is being sold by SIMILAR sales people using SIMILAR sales strategies in SIMILAR environments with SIMILAR quality and everyone is getting SIMILAR results. - tom peters: Re-imagine

The iPodization of Your Marketplace: Customers Under Assault 3K ad impressions daily 40K products in supermarkets 50 varieties of Tylenol 30K new books every year 324B business documents 72B new documents every year 14K radio stations 2K TV stations 500K words in the NY times 80 emails a day to most execs More more more never ending… ARE YOU BREAKING THROUGH THE NOISE?

3K ad impressions daily

40K products in supermarkets

50 varieties of Tylenol

30K new books every year

324B business documents

72B new documents every year

14K radio stations

2K TV stations

500K words in the NY times

80 emails a day to most execs

More more more never ending…

ARE YOU BREAKING THROUGH THE NOISE?

The iPodization of Your Marketplace: How Customers Respond Screening (less than 1 sec) What gets in Associations with “like ___” Super Networked Vigilante Mindset ARE YOU MAKING THE FIRST CUT? WHAT ARE YOU ARE MOST LIKE ?

Screening (less than 1 sec)

What gets in

Associations with “like ___”

Super Networked

Vigilante Mindset

ARE YOU MAKING THE FIRST CUT?

WHAT ARE YOU ARE MOST LIKE ?

The iPodization of Your Marketplace: Customers Want Value The 4 Pillars of Value Knowledge Relevance Differentiation Esteem / Ego Perceived “Value” must outweigh price, if it doesn’t then “commodity” pricing wars start THE iPod IS A HOMERUN IN ALL 4

The 4 Pillars of Value

Knowledge

Relevance

Differentiation

Esteem / Ego

Perceived “Value” must outweigh price,

if it doesn’t then “commodity” pricing

wars start

THE iPod IS A HOMERUN IN ALL 4

The iPodization of Your Marketplace: Customers Want Experiences Defined as a 1 to 1 engagement where the customer becomes a key participant with the product, its information and what the brand stands for 70% would increase buying consideration 57% would buy faster 80% would share their experience with a friend 66% would attend a live event if they heard about it from a friend Number of companies with a CXO = 0 Buying is emotional

Defined as a 1 to 1 engagement where the customer becomes a key participant with the product, its information and what the brand stands for

70% would increase buying consideration

57% would buy faster

80% would share their experience with a friend

66% would attend a live event if they heard

about it from a friend

Number of companies with a CXO = 0

Buying is emotional

The iPodization of Your Marketplace: Other Market Influencers Access to Information Networked Communities Rapidly Changing Standards Pressure on Innovation Flat Org Charts Me, Inc. / Free Agent Employees Qualified Labor Pool Shortage Lean Corporations

Access to Information

Networked Communities

Rapidly Changing Standards

Pressure on Innovation

Flat Org Charts

Me, Inc. / Free Agent Employees

Qualified Labor Pool Shortage

Lean Corporations

The iPodization of Your Marketplace: The Takeaway More competitive for customers attention Increasing pressure on price More pressure on Innovation and value COMFORT WAS A THING OF THE PAST

More competitive for customers attention

Increasing pressure on price

More pressure on Innovation and value

COMFORT WAS A THING OF THE PAST

Moving Away From Traditional Advertising to iPodization Strategies

Destruction

“ Revenue” VS. “Cost”

Moving away from the Traditional to iPodization: Who is Responsible 62% of companies don’t have a CMO Resulting in: Overburdened “sales” focused CEO Lack of unified brand message Lack of big picture insight / processes No passive prospecting efforts And lots more MARKETING IS A FULL-TIME JOB

62% of companies don’t have a CMO

Resulting in:

Overburdened “sales” focused CEO

Lack of unified brand message

Lack of big picture insight / processes

No passive prospecting efforts

And lots more

MARKETING IS A FULL-TIME JOB

Moving away from the Traditional to iPodization: Budgeting Accordingly 2-3% of gross revenues is US avg. 20% matched industry peer group 10-25% of budgets went to wrong places Traditionally first to get cut More than 70% don’t have formal budgets FLYING BLIND IS RISKY BUSINESS

2-3% of gross revenues is US avg.

20% matched industry peer group

10-25% of budgets went to wrong places

Traditionally first to get cut

More than 70% don’t have formal budgets

FLYING BLIND IS RISKY BUSINESS

Moving away from the Traditional to iPodization: What Companies are Budgeting Industry % of Revenue % of Profit Apparel 3.7 9.0 Construction 0.3 1.1 Department Stores 3.5 10.4 Eating Places 3.2 14.3 Employment Agencies 2.2 6.1 Finance Lessors 1.5 1.8 Furniture Stores 5.9 14.6 Health Services 4.9 13.1 Insurance Services 1.7 2.6 Misc Manufacturing 1.5 2.9 Mortgage Bankers 1.4 2.5 Offices of Medical Dr.s 12.0 64.5 Personal Services 3.8 11.6 Real Estate Brokers 14.0 56.3

Industry % of Revenue % of Profit

Apparel 3.7 9.0

Construction 0.3 1.1

Department Stores 3.5 10.4

Eating Places 3.2 14.3

Employment Agencies 2.2 6.1

Finance Lessors 1.5 1.8

Furniture Stores 5.9 14.6

Health Services 4.9 13.1

Insurance Services 1.7 2.6

Misc Manufacturing 1.5 2.9

Mortgage Bankers 1.4 2.5

Offices of Medical Dr.s 12.0 64.5

Personal Services 3.8 11.6

Real Estate Brokers 14.0 56.3

Moving away from the Traditional to iPodization: Two Very Different Budget Models

Moving away from the Traditional to iPodization: Over Investing in Traditional Media Make it easy for the 3% to find you ID and hit that 7% hard ID and trickle feed the 60% Knowledge Relevance Differentiation Esteem / Ego ID and forget about the 30% P&G realized this So did AT&T

Make it easy for the 3% to find you

ID and hit that 7% hard

ID and trickle feed the 60%

Knowledge

Relevance

Differentiation

Esteem / Ego

ID and forget about the 30%

P&G realized this

So did AT&T

Moving away from the Traditional to iPodization: Over Investing in Traditional Media Key Problems with the Old Model 90% of sale literature doesn’t actually get used by sales people No money for: Target Innovation Sales Tools Training (Brand “U”) Market Research Truly Focused Campaigns Guerilla / Non-Traditional Buzz / PR Conversational marketing Experiential efforts

Key Problems with the Old Model

90% of sale literature doesn’t actually get used by sales people

No money for:

Target Innovation

Sales Tools

Training (Brand “U”)

Market Research

Truly Focused Campaigns

Guerilla / Non-Traditional

Buzz / PR

Conversational marketing

Experiential efforts

We don’t have a budget…at one time we ran a bunch of ads…didn’t know what we got in return, so we had our sales people start calling a bunch of people.

Moving away from the Traditional to iPodization: Over Investing in Traditional Media Traditional Media Under Fire Budgets increase 7-10% annually Low confidence (CMO & CEO) Ad skipping technology Declining TV viewer-ship Newspaper subscriptions Radio listening audiences New telemarketing rules Tracking & Measuring ROI

Traditional Media Under Fire

Budgets increase 7-10% annually

Low confidence (CMO & CEO)

Ad skipping technology

Declining

TV viewer-ship

Newspaper subscriptions

Radio listening audiences

New telemarketing rules

Tracking & Measuring ROI

Don’t Trust Frequency Theory

Moving away from the Traditional to iPodization: The Takeaway Downward Spiral (Cost Cutting Budgets) Relying on an old ineffective model Increasing pressure on ROI BUYING MORE ADS WON’T GET MORE RESULTS

Downward Spiral (Cost Cutting Budgets)

Relying on an old ineffective model

Increasing pressure on ROI

BUYING MORE ADS WON’T

GET MORE RESULTS

The 7 Secrets to successful marketing in the iPod Nation

The Real Secret is the Passion To Be The Best

The 7 Secrets: 1. The Core Story Experts have data Alters buying criteria systematically Known throughout the organization Found in all materials, conversations, and presentations Able to be repeated and shared by customers Tell Stories A CONVINCING REPRESENTATION OF WHY YOU EXIST

Experts have data

Alters buying criteria systematically

Known throughout the organization

Found in all materials, conversations, and presentations

Able to be repeated and shared by customers

Tell Stories

A CONVINCING REPRESENTATION OF

WHY YOU EXIST

The 7 Secrets: 2. Market Research Only 30% have conducted formal market research Less than 20% have in the last year Less than 10% have ever conducted secret shopping Almost all of those who did secret shopping used it to drive service objectives and market strategy WHAT YOU RESEARCH IS IMPORTANT TOO

Only 30% have conducted formal market research

Less than 20% have in the last year

Less than 10% have ever conducted secret shopping

Almost all of those who did secret shopping used it to drive service objectives and market strategy

WHAT YOU RESEARCH IS IMPORTANT TOO

The 7 Secrets: 3. Target Innovation Create your own future Build for your “Profit Center” customers 85% of companies claim best quality products or service Leverage Pareto’s Principle (80/20 rule) Less than 10% budget for R&D BUILD SOMETHING THEY CAN’T LIVE WITHOUT

Create your own future

Build for your “Profit Center” customers

85% of companies claim best quality products or service

Leverage Pareto’s Principle (80/20 rule)

Less than 10% budget for R&D

BUILD SOMETHING THEY CAN’T LIVE WITHOUT

The 7 Secrets: 4. Target Marketing More than 90% have conducted some type of targeted marketing effort Typical response rates are .05-2% True target marketing typically yields response rates of 34-50% True target marketing becomes viral YOU WANT FANATICAL CUSTOMERS *see premise

More than 90% have conducted some type of targeted marketing effort

Typical response rates are .05-2%

True target marketing typically yields response rates of 34-50%

True target marketing becomes viral

YOU WANT FANATICAL CUSTOMERS

*see premise

The 7 Secrets: 5. Experiential Selling & Servicing Touchpoint Enhancements Facility Design Pitches / Presentations / Proposals Events (Live, Ambush, Pop-up) The Core Story Your People EXPERIENCE…FEEL…SHARE…RELATE

Touchpoint Enhancements

Facility Design

Pitches / Presentations / Proposals

Events (Live, Ambush, Pop-up)

The Core Story

Your People

EXPERIENCE…FEEL…SHARE…RELATE

The 7 Secrets: 6. HR & The Brand University Executive survey by Accenture… 75% said their people weren’t at industry leading level 90% said their people fail to understand strategic priorities 87% said their people don’t connect their jobs to strategic goals BRAND UNIVERSITIES TEACH HOW TO ACHIEVE STRATEGIC GOALS Ritz Carlton & Disney

Executive survey by Accenture…

75% said their people weren’t at industry leading level

90% said their people fail to understand strategic priorities

87% said their people don’t connect their jobs to strategic goals

BRAND UNIVERSITIES TEACH HOW

TO ACHIEVE STRATEGIC GOALS

Ritz Carlton & Disney

The 7 Secrets: 6. HR & The Brand University Hire lifters not leaners Sets performance standards Regular training (product / service / attitude) Various levels (executive, manager, front line) Integrated into the marketing process Orientation programs for new hires Driven by real time status on goals KNOW THE PRODUCT: MAKE IT FUN TO BUY

Hire lifters not leaners

Sets performance standards

Regular training (product / service / attitude)

Various levels (executive, manager, front line)

Integrated into the marketing process

Orientation programs for new hires

Driven by real time status on goals

KNOW THE PRODUCT: MAKE IT FUN TO BUY

The 7 Secrets: 6. HR & The Brand University A little change in language means everything If you owned a hair salon… do you cut hair or make beautiful people If you owned a restaurant… do you wait on tables or guide people through a culinary delight Major impact on employee and customer mindset

A little change in language means everything

If you owned a hair salon…

do you cut hair

or make beautiful people

If you owned a restaurant…

do you wait on tables

or guide people through a culinary delight

Major impact on employee and customer mindset

Marketing in the iPod Nation: 7. Accountability 90% of CEOs say this is a top priority 20% have comprehensive framework to do so 65% of CMOs and 90% of CEOs want better accountability with marketing That’s a 25% difference of opinion Among the 100 largest brands in the US the average tenure of a CMO is 23 months compared to CEOs who is 58 months If 50% of your marketing was broke would you know which 50%? If you cant measure in real time then you can’t adjust either

90% of CEOs say this is a top priority

20% have comprehensive framework to do so

65% of CMOs and 90% of CEOs want better accountability with marketing

That’s a 25% difference of opinion

Among the 100 largest brands in the US the average tenure of a CMO is 23 months compared to CEOs who is 58 months

If 50% of your marketing was broke would you know which 50%?

If you cant measure in real time then you can’t adjust either

Marketing in the iPod Nation: 7. Accountability Traditional media can be tracked Non-Traditional is more measurable Being able to track means you can adjust IT’S YOUR MONEY…KNOW WHERE IT’S GOING

Traditional media can be tracked

Non-Traditional is more measurable

Being able to track means you can adjust

IT’S YOUR MONEY…KNOW WHERE IT’S GOING

The 7 Secrets: The Takeaway Departmental silos will inhibit your true potential. Align Marketing with Sales and HR and do it in a way that brings in accountability.

The iPodization of a small Credit Union

The iPodization of a small Credit Union: In The Beginning Small local 5 branch Credit Union in Wisconsin Revenues of $155MM Running billboard, radio, print and sponsorships ($250K.yr) Ranked 6 in their market #1 and #2 competition 10x bigger #1 and #2 were flooding the market with media (rate game) Pressure on mortgages, consumer loans and membership

Small local 5 branch Credit Union in Wisconsin

Revenues of $155MM

Running billboard, radio, print and sponsorships ($250K.yr)

Ranked 6 in their market

#1 and #2 competition 10x bigger

#1 and #2 were flooding the market with media (rate game)

Pressure on mortgages, consumer loans and membership

The iPodization of a small Credit Union: The BIG Changes Pulled all existing media Did some minor brand / image enhancements Built a completely new 12 month go to market plan Kick off meeting where we shared the new vision New Mission Statement (Best credit union on the planet) Started a 12 month secret shopping program Developed a number of unique programs / language Created an internal Brand University with 3 colleges Hired a new HR director Transformed the facilities Hired 8 people for a Guerilla marketing team Migrated their $250K marketing budget to an 20%(trad)-80%(non trad) split Brought accountability into the marketing mix

Pulled all existing media

Did some minor brand / image enhancements

Built a completely new 12 month go to market plan

Kick off meeting where we shared the new vision

New Mission Statement (Best credit union on the planet)

Started a 12 month secret shopping program

Developed a number of unique programs / language

Created an internal Brand University with 3 colleges

Hired a new HR director

Transformed the facilities

Hired 8 people for a Guerilla marketing team

Migrated their $250K marketing budget to an 20%(trad)-80%(non trad) split

Brought accountability into the marketing mix

The iPodization of a small Credit Union: The BIG Changes In a short span of 8 months …memberships, checking accounts, and loan volumes are all exceeded their goals. A recent industry survey ranked them #1 in the nation for customer satisfaction based on their size.

The iPodization of a small Credit Union: The Takeaway This isn’t impossible It’s going to take time, money, and effort We know this model works IF NOTHING CHANGES…NOTHING CHANGES

If you create something that’s truly “unique” and “amazing” then you will have fanatical customers who will pay anything to be part of “who” you are.

One Final Thought: Apathy Kills Companies Played it Safe Yahoo GM IBM Kmart State Farm Kodak Mr. Coffee Imus USA China The along came… Google Toyota Dell Wal-Mart Progressive Sony Hamilton Beach Howard Stern China Indonesia

Played it Safe

Yahoo

GM

IBM

Kmart

State Farm

Kodak

Mr. Coffee

Imus

USA

China

The along came…

Google

Toyota

Dell

Wal-Mart

Progressive

Sony

Hamilton Beach

Howard Stern

China

Indonesia

My Turn to Shut up and Listen

Thank You visit the blog: www.stacygentile.com

Q & A Questions by Phone 1-414-305-5449