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Marketing During a Recession: 18 Strategies for Organizations, Business Owners and Entrepreneurs

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18 Recession Marketing Strategies--
Time for accountable advertising: Re-examine your current marketing initiatives and assumptions

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Marketing During a Recession: 18 Strategies for Organizations, Business Owners and Entrepreneurs

  1. 1. Marketing During a Recession: 18 Strategies for Organizations, Business Owners and Entrepreneurs May 18, 2010
  2. 2. Recession Marketing Retooling Anticipating Economic Reality Recession A significant decline in activity spread across the economy, lasting longer than two quarters of negative economic growth as measured by a country's gross domestic product (GDP). Deflation A fall in the general price level or a contraction of credit and available money. Inflation Inflation is a rise in the general level of prices of goods and services over time caused by high rates of growth of the money supply. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index. Stagflation A condition of slow economic growth and relatively high unemployment— accompanied by a rise in prices, or inflation.
  3. 3. <ul><li>A McGraw Hill research study of recessionary marketing revealed those that maintained or increased their advertising during a recession posted an average sales growth of 256% </li></ul><ul><li>In the last recession, only 25% of companies increased their marketing. As a result, their average market share growth outpaced other businesses by 2.5 times </li></ul><ul><li>Recession…16-18 months? </li></ul>
  4. 4. 18 Recession Marketing Strategies <ul><li>Strategy #1 </li></ul><ul><li>Time for accountable advertising: Re-examine your current marketing initiatives and assumptions </li></ul><ul><li>Know your: </li></ul><ul><ul><ul><li>Cost per lead </li></ul></ul></ul><ul><ul><ul><li>Cost per sale </li></ul></ul></ul><ul><ul><ul><li>Lifetime value (LTV) </li></ul></ul></ul>
  5. 5. <ul><li>Is half your advertising wasted? </li></ul>“ Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” — John Wanamaker, Philadelphia Department Store Founder
  6. 6. <ul><li>The #1 marketing mistake? </li></ul>
  7. 7. <ul><li>Image Advertising </li></ul><ul><li>vs. </li></ul><ul><li>Direct Marketing (DM) = </li></ul><ul><li>Scientific Advertising </li></ul>• Targeted • Accountable • Test (assumptions) • Looking for future database marketing (upsell/cross-sell)
  8. 8. <ul><li>Direct marketing for: </li></ul>• Direct sales • Drive to retail • Drive to web • B2B • Database • Consumer • Lead generation • Local • Fund-raising • National • Membership • International
  9. 9. <ul><li>Direct marketing using: </li></ul>• Direct mail • Email • Ads • Paid search • Radio • Viral marketing • TV • Websites • Ezines • Banner ads • Mobile
  10. 10. <ul><li>Strategy #2 </li></ul><ul><li>Reinventing your positioning and image: Review your Unique Selling Proposition (USP) </li></ul>
  11. 11. Strategy #3 Reality in advertising: Address marketing evils with preemptive copy <ul><li>Recession </li></ul><ul><li>Fear of government </li></ul><ul><li>Government uncertainty </li></ul><ul><li>Information overload </li></ul><ul><li>Rising costs </li></ul><ul><li>Unemployment </li></ul>
  12. 16. • Recognize, and if appropriate, address these evils • Don’t ignore them • News is your friend Every marketing effort
  13. 17. <ul><li>Direct response copy mega difference </li></ul><ul><ul><li>Online </li></ul></ul><ul><ul><li>Hard copy </li></ul></ul><ul><li>Theme </li></ul><ul><ul><li>Fear </li></ul></ul><ul><ul><li>Greed </li></ul></ul><ul><ul><li>Anger </li></ul></ul><ul><ul><li>Exclusivity </li></ul></ul><ul><ul><li>Safety </li></ul></ul>Strategy #4
  14. 18. Normal approach Features
  15. 19. Benefit approach
  16. 20. Product: Litigation software Feature: Sort and tag. Benefit: You’ll save $2 million a year and reduce staff time for e-discovery by 75%. Ultimate Benefit: Your litigation team will be more efficient and it will free up the financial and staffing resources you need to run a profitable firm. Sell benefits not features
  17. 21. Other copy essentials <ul><li>Be specific </li></ul><ul><li>Be conversational </li></ul><ul><li>“ You” oriented </li></ul><ul><li>Easy to read </li></ul><ul><li>M² </li></ul><ul><li>Drama/surprise </li></ul>
  18. 22. Short Copy Clicks Cost CPC Revenue ROI* Conversion 1,700 $258.62 $0.15 $295.75 -66% 0.18% Long Copy Clicks Cost CPC Revenue ROI* Conversion 1,440 $218.83 $0.15 $1,092.15 50% 0.69% *The profit margin used to calculate ROI was 30% Copy length
  19. 23. At the end of your copy presentation Ask yourself. . .
  20. 24. <ul><ul><li>Does it grab my attention right away? </li></ul></ul><ul><ul><li>Does it recognize recession/pain/fear? </li></ul></ul><ul><ul><li>Do I recognize immediately a good value proposition? </li></ul></ul><ul><ul><li>Is it written to me and me alone? </li></ul></ul><ul><ul><li>Do I feel the writer cares about me? </li></ul></ul><ul><ul><li>Do I feel the writer believes what he is saying? </li></ul></ul><ul><ul><li>Do I believe the writer? </li></ul></ul><ul><ul><li>Why should I respond now and not later? </li></ul></ul><ul><ul><li>Is there an alternative? </li></ul></ul><ul><ul><li>Do I feel safe/comfortable about ordering? </li></ul></ul>10 deal killers: critical response
  21. 25. <ul><li>Strategy #5 </li></ul><ul><li>Cost cutting </li></ul><ul><ul><li>Printing </li></ul></ul><ul><ul><li>Media costs </li></ul></ul><ul><ul><li>Lists </li></ul></ul><ul><ul><li>Postal </li></ul></ul><ul><ul><li>Media options </li></ul></ul>
  22. 26. Deals!
  23. 27. <ul><li>Strategy #6 </li></ul><ul><li>Reevaluate your offer – make </li></ul><ul><li>it preemptive </li></ul><ul><ul><li>Premiums </li></ul></ul><ul><ul><li>Guarantee </li></ul></ul><ul><ul><li>Price/Discount </li></ul></ul>
  24. 28. Premium
  25. 29. Premiums
  26. 30. Guarantee
  27. 31. Price ________________ Discount
  28. 32. Discount
  29. 34. Price wording <ul><li>Test #1 —7 days FREE or continue at just $24.95 for 8 weeks at a savings of 50% </li></ul><ul><li>Test #2 —7 days RISK FREE then continue at just $24.95 for 8 weeks (50% savings) </li></ul>
  30. 35. Call to action (CTA) Test #1 —Click here for your FREE report Test #2 —Download your FREE report now
  31. 36. Customer Strategy # 7 Concentrate on your database Customer
  32. 37. <ul><li>Database marketing </li></ul><ul><li>Relationship marketing </li></ul><ul><li>Letters </li></ul><ul><li>Emails </li></ul><ul><li>Newsletters </li></ul><ul><li>Ezines </li></ul><ul><li>Telesales </li></ul>Customer
  33. 38. <ul><li>Action Plan </li></ul><ul><li>Upsell </li></ul><ul><li>Cross-sell </li></ul><ul><li>Loyalty program </li></ul><ul><li>Former clients </li></ul><ul><li>Database leads </li></ul><ul><li>Retention series </li></ul><ul><li>Conversion series </li></ul>Smart marketers will focus on their database…BUT Do NOT neglect prospecting
  34. 39. Create a professional direct response conversion series
  35. 42. Strategy #8 Mobile marketing breakthrough
  36. 43. Strategy #9 Corporate websites are obsolete Antimarketing madness: Revise website strategy Direct marketing microsites and landing pages
  37. 49. The greatest loss of orders comes on the _____________?
  38. 50. Avoid shopping cart insanity Strategy #10 Online lost sales and leads Streamline your shopping cart
  39. 51. 2 big mistakes <ul><li>? </li></ul><ul><li>? </li></ul>
  40. 52. Mistake #1 <ul><li>Tombstone carts </li></ul>
  41. 54. Mistake #2 <ul><li>Multistep process </li></ul>#1
  42. 55. #2
  43. 56. #3
  44. 57. #4
  45. 58. #5
  46. 59. #6
  47. 60. #7
  48. 61. #8
  49. 62. #9
  50. 63. #10
  51. 64. Seamless, smart shopping cart
  52. 66. Strategy #11 Expand globally
  53. 68. <ul><li>Strategy #12 </li></ul><ul><li>The rules of email </li></ul><ul><li>are changing: </li></ul><ul><li>Secrets for success </li></ul>
  54. 69. #1 email marketing mistake
  55. 70. The 3 Rs of email marketing to prospects <ul><li>_______________________ </li></ul><ul><li>_______________________ </li></ul><ul><li>_______________________ </li></ul>
  56. 71. Email subject lines Crisis unfolds: Carter-era inflation on the way Bailout nightmare: Your wealth is in jeopardy Free market nightmare: Socialism-style bailout How to protect yourself and profit in 2010
  57. 72. Email subject lines 9.630% Crisis unfolds: Carter-era inflation on the way 26.437% Bailout nightmare: Your wealth is in jeopardy 20.854% Free market nightmare: Socialism-style bailout 6.757% How to protect yourself and profit in 2010
  58. 73. Recent Tests Video vs. no video 113% Non-superscript vs. superscript 92% 68% Picture vs. no picture 33% Chart vs. no chart
  59. 74. Strategy #13 The digital video explosion
  60. 75. Megatrend: Video explosion <ul><li>Email </li></ul><ul><li>Website </li></ul><ul><li>Podcast </li></ul><ul><li>Viral marketing </li></ul>
  61. 76. Web videos: Help or hurt? <ul><li>Test: Which testimonial format was </li></ul><ul><li>most effective? </li></ul><ul><li>  </li></ul><ul><ul><li>A. No testimonials </li></ul></ul><ul><ul><li>B. Text testimonials </li></ul></ul><ul><ul><li>C. Video testimonials </li></ul></ul>
  62. 79. Fawn’s viral video
  63. 80. Fawn’s landing page
  64. 81. www.barrykaye.com
  65. 82. Strategy #14 Direct response TV
  66. 83. Swiss Confidential TV Commercial
  67. 84. Strategy #15 Direct response radio
  68. 85. <ul><li>Inflation Survival Kit </li></ul><ul><li>Radio Commercial </li></ul>
  69. 86. Strategy #16 Untapped potential of paid search
  70. 88. 4 keys to success <ul><li>Keyword strategy </li></ul><ul><li>Test headlines/ad copy </li></ul>
  71. 89. Test headline 46 ways to raise prices Headline #1 The easiest price increases you’ll ever make or your money back Headline #2 The secrets of making customers happy to pay more
  72. 90. 3. Test separate landing pages
  73. 91. Which worked best? 4. Test URLs (A) Mold Help for Morons Find out if you have a toxic mold problem without spending a fortune! www.StopBlackMoldNow.com (B) Mold Help for Morons Find out if you have a toxic mold problem without spending a fortune! www.GetMoldSolutions.com
  74. 92. <ul><li>Strategy #17 </li></ul><ul><li>Online ads </li></ul>
  75. 94. Strategy #18 Back to the future: Direct mail
  76. 96. Postcard <ul><li>50,000 pieces </li></ul><ul><li>Postcard </li></ul><ul><li>Cost: 45 cents </li></ul><ul><li>.4% response rate </li></ul><ul><li>Cost per lead: $122.50 </li></ul><ul><li>200 leads </li></ul><ul><li>Traditional Package </li></ul><ul><li>Cost: 75 cents </li></ul><ul><li>1.9% response rate </li></ul><ul><li>Cost per lead: $39.47 </li></ul><ul><li>950 leads </li></ul><ul><li>* Mailing costs adjusted to 2007-2008 expense levels </li></ul>
  77. 99. <ul><li>Bookalog </li></ul>
  78. 106. Postage
  79. 107. <ul><li>Brochure in envelope.………………………….0.5% </li></ul><ul><li>Self-mailer.………………………………………1.0% </li></ul><ul><li>Elaborate brochure and short letter in envelope………………………………………3.2% </li></ul><ul><li>Letter and brochure combination in envelope………………………………………4.0% </li></ul><ul><li>Brief brochure and long letter in envelope………………………………………7.3% </li></ul>5-way test
  80. 108. Letter
  81. 109. Letter
  82. 110. Lift note
  83. 111. Added - value insert
  84. 112. Response device
  85. 113. Mailing List <ul><li>DR vs. Compiled </li></ul><ul><li>Matchback! </li></ul>
  86. 114. Putting It All Together
  87. 122. WARNING! Be sure to integrate your direct mail (other marketing efforts) with your website Direct response microsite Anti-marketing corporate site
  88. 123. Integrated campaign
  89. 124. <ul><li>Make sure everything you do is accountable </li></ul><ul><li>Rework all old materials </li></ul><ul><li>Concentrate on marketing to your database </li></ul><ul><li>Don’t neglect prospecting </li></ul><ul><li>Use an integrated direct marketing approach </li></ul>Summary
  90. 125. <ul><li>Accountable advertising </li></ul><ul><li>Review your USP </li></ul><ul><li>Reality in advertising </li></ul><ul><li>Direct response copy </li></ul><ul><li>Cost cutting </li></ul><ul><li>Reevaluate your offer </li></ul><ul><li>Concentrate on your database </li></ul><ul><li>Mobile marketing </li></ul><ul><li>Revise website strategy </li></ul><ul><li>Streamline your shopping cart </li></ul><ul><li>Expand globally </li></ul><ul><li>Email secrets </li></ul><ul><li>Digital video explosion </li></ul><ul><li>Direct response TV </li></ul><ul><li>Direct response radio </li></ul><ul><li>Paid search </li></ul><ul><li>Online ads </li></ul><ul><li>Direct mail </li></ul>18 Strategies
  91. 126. Questions If you have any questions about these strategies, please call Craig at 310-212-5727 Fill out the handout and give it to Craig
  92. 127. Thank you Email: [email_address] www.cdmginc.com

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