Marketing After the Recession


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A review of how printers and graphic arts service providers must change their marketing strategies to prosper in the post-recession environment.

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Marketing After the Recession

  1. 1. Marketing in a Recession and Recovery Positioning Your Company for Ongoing Success
  2. 2. Why Survival Strategies Don’t Work <ul><li>#1 killer of businesses because they are about: </li></ul><ul><ul><li>Conserving resources </li></ul></ul><ul><ul><li>Slowing your movement </li></ul></ul><ul><ul><li>Hoping no one notices that you are dieing </li></ul></ul><ul><ul><ul><li>And they seldom do more than buy a little time! </li></ul></ul></ul>
  3. 3. The Worst Thing You Can Do Is “Go Dark” to the Market
  4. 4. Evidence Supports Visibility <ul><li>Yankelovich/Harris </li></ul><ul><li>Execs agree that seeing a company in a down market makes them feel more positive about the company and keeps them top-of-mind when making purchase decisions. </li></ul><ul><li>McGraw-Research Laboratory of Advertising Performance </li></ul><ul><li>Study of 600 BtoB marketers found that those who maintained or increased advertising during a recession averaged sales growth of 275% over the preceding five years. </li></ul>
  5. 5. Evidence (Cont.) <ul><li>American Business Press </li></ul><ul><li>Study revealed sales and profits could be maintained and increased in recession years and in the years following by those who maintain an aggressive posture while others become non-participants. </li></ul><ul><li>Harvard Business Review </li></ul><ul><li>Report of 200 companies found that sales increases came from companies that advertised the most during the recessionary year. </li></ul>
  6. 6. Where Should You Focus Resources? Innovation Provides the Only Real Escape Hatch
  7. 7. Lots of Innovation Occurs During Weak Economies <ul><li>1919—The Assembly Line (Ford) </li></ul><ul><li>1920—Market Segmentation (GM) </li></ul><ul><li>1931—Brand Management (P&G) </li></ul><ul><li>1943—Skunk Works (Lockheed) </li></ul><ul><li>1950s—Lean Manufacturing (Taiicho Ohno,Toyota) </li></ul><ul><li>1967—Scenario Planning (Shell) </li></ul><ul><li>1973—360-Degree Reviews (DuPont) </li></ul><ul><li>1987—Six Sigma (Motorola, GE) </li></ul><ul><li>1989—Outsourcing (IBM) </li></ul><ul><li>1990—Reengineering (Michael Hammer, Ford) </li></ul><ul><li>2000s—Open Innovation (P&G) </li></ul><ul><li>Source: Business Week , March 23, 2009 </li></ul>
  8. 8. Are Any Printers Innovating?
  9. 9. Let’s Look at Two Outside the Box <ul><li>Tukaiz ( ) </li></ul><ul><li>SendOut Cards ( ) </li></ul>
  10. 10. Question: Knowing What You Know Today, What Would You Have Done Differently?
  11. 11. More Importantly, What Would Make Tomorrow Different? <ul><li>Strategies and tactics </li></ul><ul><li>Services </li></ul><ul><li>Relationship building </li></ul><ul><li>Join ventures and partnerships </li></ul>
  12. 12. The Non-recovery Recovery <ul><li>U.S. jobless rate peaks in 2 nd half of 2010 </li></ul><ul><li>GDP rises 2.5% 2010 </li></ul><ul><li>GDP rises 2.8% 2011 </li></ul><ul><li>Slow recovery worsens deficit </li></ul><ul><li>Second stimulus? </li></ul><ul><li>Source: Organization for Economic Development, Nov. 2009 </li></ul>
  13. 13. What’s the Print Economic Outlook? <ul><li>Employment levels and credit markets will improve in 2010 </li></ul><ul><li>Anticipate signs of modest recovery in early 2010 </li></ul><ul><li>Slow U.S. GDP growth of 2.2% over next decade </li></ul>
  14. 14. Outlook (cont.) <ul><li>Print does best in mature part of recoveries </li></ul><ul><ul><li>Don’t expect immediate help </li></ul></ul><ul><li>Recovery will only lift those companies that structurally change their businesses </li></ul>
  15. 15. Outlook (Cont.) <ul><li>Agency Bradford & Maloney sees best print opportunities for: </li></ul><ul><ul><li>Gift and discount cards </li></ul></ul><ul><ul><li>Cents-off coupons </li></ul></ul><ul><ul><li>FSIs </li></ul></ul><ul><ul><li>Direct mail </li></ul></ul><ul><ul><li>Digitally printed books </li></ul></ul><ul><ul><li>Large-format products </li></ul></ul><ul><ul><li>Variable-data digitally printed products </li></ul></ul><ul><ul><li>Newspapers printed by commercial shops </li></ul></ul><ul><ul><li>Source: NPES 2009 Industry Summit </li></ul></ul>
  16. 16. Some Categories Will Never Be the Same <ul><li>383 magazines closed in the first nine months of 2009 </li></ul><ul><ul><li>259 new launches in same period </li></ul></ul><ul><ul><li>64 ceased print versions but continued online </li></ul></ul><ul><ul><li>Closings outpaced launches </li></ul></ul><ul><ul><li>Marketers keep shifting dollars to the Internet and especially to search engines </li></ul></ul><ul><ul><li>Source: </li></ul></ul>
  17. 17. So How Will Your Team Cope With the “New Normal?”
  18. 18. Study Shows Consumers Have Internalized Recession Experience <ul><li>Assumptions underpinning segmentation no longer valid </li></ul><ul><li>Marketing strategies that don’t recognize the diversity of recession experiences won’t work in post recession </li></ul><ul><li>It’s the “new normal,” not just a cyclical phenomenon </li></ul><ul><li>Deep-rooted change in favor of a more restrained approach </li></ul><ul><li>Source: “Marketing to the Post-Recession Consumers,” Decitica </li></ul>
  19. 19. Four Distinct Emerging Consumer Segments <ul><li>Steadfast Frugalists </li></ul><ul><ul><li>Self-restraint, prudence </li></ul></ul><ul><ul><li>20% of all consumers </li></ul></ul><ul><ul><li>60% women </li></ul></ul><ul><li>Involuntary Penny-Pinchers </li></ul><ul><ul><li>More stressed, worried </li></ul></ul><ul><ul><li>Heavy in 30s & 40s </li></ul></ul><ul><ul><li>29% of consumers </li></ul></ul><ul><ul><li>60% women </li></ul></ul><ul><ul><li>38% exceeded income </li></ul></ul>
  20. 20. Emerging Segments (cont.) <ul><li>Pragmatic Spenders </li></ul><ul><ul><li>Most able to resurrect past spending </li></ul></ul><ul><ul><li>Heavy in 60s </li></ul></ul><ul><ul><li>29% of consumers </li></ul></ul><ul><ul><li>60% men </li></ul></ul><ul><li>Apathetic Materialists </li></ul><ul><ul><li>Least changed </li></ul></ul><ul><ul><li>22% of consumers </li></ul></ul><ul><ul><li>Younger, singles, slightly more women </li></ul></ul>
  21. 21. New Strategies <ul><li>Find a way into the decision-making process </li></ul><ul><ul><li>Bring something of value </li></ul></ul><ul><ul><li>Become a thought leader </li></ul></ul><ul><ul><li>Get people who know marketing </li></ul></ul><ul><li>Embrace all things digital </li></ul><ul><ul><li>Not just print </li></ul></ul><ul><li>Understand how multi- channel works </li></ul><ul><ul><li>Become a player </li></ul></ul><ul><li>Develop a consultative, not transactional sales team </li></ul>
  22. 22. Warning! Growth Is Not a Strategy. Dominating a Category Is.
  23. 23. How Do You Know If Your Sales Team Is Transactional? <ul><li>Order takers won’t cut it in the new the new marketing environment </li></ul><ul><li>You have to decide who can take you to a higher level and who can’t </li></ul>
  24. 24. Transactional Consultative <ul><li>Comfortable with printing process </li></ul><ul><li>Know production managers </li></ul><ul><li>Know clients' print requirements </li></ul><ul><li>Read printing industry publications </li></ul><ul><li>Comfortable with business strategy </li></ul><ul><li>Know executive managers </li></ul><ul><li>Know clients' business objectives </li></ul><ul><li>Read clients' industry publications </li></ul>
  25. 25. Transactional Consultative <ul><li>Sells company's products/services </li></ul><ul><li>Sells him/herself </li></ul><ul><li>Takes responsibility for quality product </li></ul><ul><li>Sells solutions </li></ul><ul><li>Sells the team </li></ul><ul><li>Takes responsibility for program benefits </li></ul>
  26. 26. Improve Your Customer Aim
  27. 27. Existing Customers Are Your Best Source of Incremental Growth <ul><li>They already know and trust you </li></ul><ul><li>PLUS, new customer acquisition can be 6-10 time more expensive than retaining customers </li></ul><ul><ul><li>So why do so many companies take such a rudimentary, reactive approach to retaining and growing existing clients? </li></ul></ul><ul><ul><li>What’s your plan for existing clients? </li></ul></ul>
  28. 28. But You Need to Do Your Customer Homework <ul><li>Aiming at the wrong customers is an expensive waste of time </li></ul><ul><li>You need to make fact-based decisions </li></ul>
  29. 29. Start By Dividing Your Customers Into Three Tiers <ul><li>Bottom feeders </li></ul><ul><ul><li>Those who primarily buy on price </li></ul></ul><ul><ul><li>Tend to shop services with little or no loyalty </li></ul></ul><ul><li>Partnership tendencies </li></ul><ul><ul><li>Tend to favor you </li></ul></ul><ul><ul><li>Interested in multiple services </li></ul></ul><ul><li>Full partnership </li></ul><ul><ul><li>Complex needs </li></ul></ul><ul><ul><li>Interested in solutions </li></ul></ul><ul><ul><li>Understand total costs as opposed to price per m </li></ul></ul><ul><ul><li>Want to work with fewer, but better vendors </li></ul></ul>
  30. 30. Next, Aim at Customer Groups <ul><li>Identify customers by market segments. </li></ul><ul><li>Look for growth markets. </li></ul><ul><li>Learn MORE about your customer's business. </li></ul><ul><li>Address the specialized needs of specific market segments. </li></ul><ul><li>Bring ideas that matter. </li></ul><ul><ul><li>How to virtually eliminate print obsolescence through a demand-based system. </li></ul></ul><ul><ul><li>How to increase retail store traffic by 10% though better data intelligence. </li></ul></ul>
  31. 31. How Well Do You Know Your Best Customers’: <ul><li>Competitors? </li></ul><ul><li>Market share? </li></ul><ul><li>Industry growth trends? </li></ul><ul><li>Nature of products—luxury, etc. </li></ul><ul><li>Hot & struggling products? </li></ul><ul><li>Distribution channels? </li></ul><ul><li>Factors affecting markets? </li></ul><ul><li>Stock performance? </li></ul>
  32. 32. Aim High <ul><li>More people high-level people are involved in major print-related decisions. </li></ul><ul><li>Don’t get stuck at the production procurement level. </li></ul>
  33. 33. Aim Beyond Print <ul><li>Print may be the least of your customer's marketing issues. </li></ul><ul><li>May be grappling with: </li></ul><ul><ul><li>Obsolescence costs. </li></ul></ul><ul><ul><li>Speed-to-market issues. </li></ul></ul><ul><ul><li>Content management. </li></ul></ul><ul><ul><li>Marketing ROI measurement. </li></ul></ul>
  34. 34. Offer New Services <ul><li>Database intelligence. </li></ul><ul><ul><li>Segmentation, product propensity, etc. </li></ul></ul><ul><li>Automated campaign management. </li></ul><ul><li>Digitally-based communications delivery. </li></ul><ul><ul><li>Print. </li></ul></ul><ul><ul><li>Email. </li></ul></ul><ul><ul><li>pURLs. </li></ul></ul><ul><ul><li>QR Codes </li></ul></ul><ul><ul><li>Dynamic mapping. </li></ul></ul><ul><ul><li>Text messaging. </li></ul></ul><ul><ul><li>Blogs. . </li></ul></ul>
  35. 35. Most Important <ul><li>Understand the new world of multichannel communications. </li></ul><ul><li>Be able to demonstrate how print plays well within that world. </li></ul><ul><li>“ We don’t have mass communications. We now have a mass of communications.” </li></ul>
  36. 36. Do You Need to Change Your Company’s Description? <ul><li>We keep “elevating” the language </li></ul><ul><ul><li>UPS is now a logistics company </li></ul></ul><ul><ul><li>Banks are now financial services providers </li></ul></ul><ul><ul><li>Should you become a Marketing Service Providers? </li></ul></ul>
  37. 37. Contrarian View <ul><li>Confuses customers </li></ul><ul><li>Takes a lot of marketing time, attention and budget </li></ul><ul><li>Can’t you just BE IT? </li></ul>
  38. 38. Joint Ventures Strategic Partnerships
  39. 39. Cardinal Rules <ul><li>Make sure one (preferably both) of you have customer demand for the product or service offering. </li></ul><ul><li>Joint ventures of faltering firms usually don’t work </li></ul>
  40. 40. Best Deals Are With Customers <ul><li>U. of Chicago is largest scholarly press. </li></ul><ul><li>Put 14,000 low-volume books in digital BiblioVault. </li></ul><ul><li>Serves 65 publishers. </li></ul><ul><li>Partnered with Edwards Brothers to install and manage digital equipment in the Chicago Digital Distribution Center (CDDC). </li></ul><ul><li>Founded with Mellon Foundation grant. </li></ul>
  41. 41. Three Essential Networking and Relationship Tools <ul><li>Corporate Blogs </li></ul><ul><ul><li>Weblog with latest entry at the top </li></ul></ul><ul><ul><li>Create your own and/or participate in others </li></ul></ul><ul><ul><li>Check or ) for blogs </li></ul></ul><ul><ul><li>Free hosting— </li></ul></ul><ul><li>Twitter </li></ul><ul><ul><li>Free social networking micro-blogging site </li></ul></ul><ul><ul><li>140 character posts </li></ul></ul><ul><ul><li>Run keyword searches at </li></ul></ul><ul><ul><li>Set an objective </li></ul></ul>
  42. 42. Relationship Tools (Cont.) <ul><li>LinkedIn </li></ul><ul><ul><li>Business social network </li></ul></ul><ul><ul><li>Locate past and present colleagues and make new ones </li></ul></ul><ul><ul><li>Participate in groups and discussions </li></ul></ul><ul><ul><li>Give and make recommendations </li></ul></ul><ul><ul><li>Establish thought leadership </li></ul></ul>
  43. 43. How It All Works Together <ul><li>Distribute Print Strategist e-newsletter to 462 print company decision makers </li></ul><ul><li>Roll articles over to blog </li></ul><ul><li>Post latest articles at Twitter and LinkedIn </li></ul><ul><li>Pick up new followers, make new contacts and initiate dialogues </li></ul>
  44. 44. My 18-Month Stats <ul><li>250 Twitter followers </li></ul><ul><ul><li>4 lists </li></ul></ul><ul><li>LinkedIn </li></ul><ul><ul><li>104 connections </li></ul></ul><ul><ul><li>4 recommendations </li></ul></ul><ul><li>Print Strategist E-News </li></ul><ul><ul><li>462 subscribers </li></ul></ul><ul><ul><li>24.35% open rate </li></ul></ul><ul><ul><li>52.64% clickthroughs </li></ul></ul><ul><ul><li>.058% unsubscribe </li></ul></ul><ul><li>Print Strategist Blog </li></ul><ul><ul><li>2,314 page views </li></ul></ul>
  45. 45. Thank You. Hope that you are successful in positioning your company for ongoing success. Larry Bauer—Print Strategist Bauer Associates 630-406-8595 [email_address]