3 most dangerous trends facing businesses and what one can do about them.

3 Most Dangerous Trends Facing a Company Today Marketplace activity and social barriers that stand in the way of a company’s success.

Researched and Produced by JayRay Consultants Inc. Sponsored by:

Why we did this independent study? Most companies across North America, are faced with the challenge of trying to hit a moving target – clients. As a multiple-media information resource, we speak to people daily who are business owners, employees and stakeholders, who struggle to survive in their industry. In an attempt to alleviate some of the struggles, we commissioned this study to investigate these trends. We are pleased to bring this informative presentation to you!

Areas Covered The latest trends on “reaching customers” Exposing the 3 most dangerous trends facing a company Discovering the combination to the lock – “Today’s secret to have a thriving business”

Not very optimistic... But very real! The failure rate of businesses is 96% within their first ten years. 80% of those fail in the first 2 years. Nearly 600,000 companies a year go out of business 65% of Canadians believe it is still a recession and will demonstrate restraints in buying behavior. The USA, Mexico, and Canada are losing jobs to China. (1.13 million managers are unemployed in the US – 3 times the amount of 2007) Canadian household debt rose to $1.3 trillion in 2008; that works out to close to $40,000 for each man, woman, and child. Source: U.S. Department of Commerce; U.S. Bureau of Labor Statistics; Chet Holmes International; Nielsen Global Consumer Confidence Index 2010; AMR Research , May 29, 2008; Certified General Accountants Association of Canada (CGAAC); Internet Advertising Revenue Report, PricewaterhouseCoopers LLP.

Many will be asking... “How do we rise above all the noise?” Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP

Many will be asking... “How do we rise above all the noise?” “How do we get to our target market?” Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP

Many will be asking... “How do we rise above all the noise?” “How do we get to our target market?” Text message ads on mobile phones are the least trusted paid advertising channel, winning the confidence of 24% of consumers globally. 83% of Americans say they have a cell phone Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP

Many will be asking... “How do we rise above all the noise?” “How do we get to our target market?” “How do we educate people with our offer?” “It’s never been more critical to be highly efficient and effective to reach consumers where they spend much of their time: online, on mobile devices, gaming and watching TV.” Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP

Many will be asking... “How do we rise above all the noise?” “How do we get to our target market?” “How do we educate people with our offer?” “Will customers be able to pay for our offer?” Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP

Three Most Dangerous Trends A distracted society Trust in messaging The cost to reach a customer

We’re a Distracted society Trend #1

Trying to get attention? Source:Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook Engineering; The Nielsen Company; Radicati Group

Trying to get attention? 28% of the TV audience use a DVR to avoid commercials 57% of Americans use TV and internet simultaneously at least once a month for 2.5+ hours 44% of people polled said they were regularly on line at work One in every 11 online minutes get spent on social network sites like Facebook. Source:Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook Engineering; The Nielsen Company; Radicati Group

Trying to get attention? 28% of the TV audience use a DVR to avoid commercials 57% of Americans use TV and internet simultaneously at least once a month for 2.5+ hours 44% of people polled said they were regularly on line at work One in every11 online minutes get spent on social network sites like Facebook. Source:Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook Engineering; The Nielsen Company; Radicati Group

Trying to get attention? Facebook’s Growth Chart and Goal 28% of the TV audience use a DVR to avoid commercials 57% of Americans use TV and internet simultaneously at least once a month for 2.5+ hours 44% of people polled said they were regularly on line at work One in every 11 online minutes get spent on social network sites like Facebook. Source:Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook Engineering; The Nielsen Company; Radicati Group

Can’t be heard over the noise? Source: Irene Rosenfeld, Chairman and CEO of Kraft Foods at the Nielsen’s Consumer Conference; Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook for business, HubSpot Blog; CTIA 2009

Can’t be heard over the noise? There are more than 300 million mobile subscribers in North America, representing approximately 90% of all adults (20% have both the device and data plan to access the mobile Web). In the US, over 84 Billion text messages are sent in a month… over 1 Trillion in 2009. “Average human today is inundated with over 2000 outbound marketing interruptions per day” “People are consuming 350% more data than thirty years ago… (reading 100,000 more words a day outside of work)” Source: Irene Rosenfeld, Chairman and CEO of Kraft Foods at the Nielsen’s Consumer Conference; Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook for business, HubSpot Blog; CTIA 2009

Can’t be heard over the noise? There are more than 300 million mobile subscribers in North America, representing approximately 90% of all adults (20% have both the device and data plan to access the mobile Web). In the US, over 84 Billion text messages are sent in a month… over 1 Trillion in 2009. “Average human today is inundated with over 2000 outbound marketing interruptions per day” “People are consuming 350% more data than thirty years ago… (reading 100,000 more words a day outside of work)” Received an emailed news story from a friend Source: Irene Rosenfeld, Chairman and CEO of Kraft Foods at the Nielsen’s Consumer Conference; Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook for business, HubSpot Blog; CTIA 2009

People just don’t Trust Trend #2

People are just not sure Source:AC Nielsen Three Screen Report; Nielsen Global Survey; B2B Sales Lead Generation, Marketing Profs, Survey 2008

People are just not sure 63% of people trust ads in Newspapers in 2007 vs 61% in 2009 Americans that regularly watch nightly network news has fallen by half. Fewer than half of the companies polled in 2008, use Web 2.0 techniques - Blogging, Podcasts or Social Media. Source:AC Nielsen Three Screen Report; Nielsen Global Survey; B2B Sales Lead Generation, Marketing Profs, Survey 2008

Parents feel taken advantage of 59% of iPhone moms let their kids use their phone 72% of cellphone owners ages 12 to 17 are texters while only 18% of cellphone owners ages 40 to 49 are texters. A videogame download or new ring tone can cost a user several dollars, charged to his phone bill. Source:Greystripe Mobile Advertising Insights Report:iPhone Mom 2009; Forbes.com article: An 'Incredible' Marketing Ploy

Parents feel taken advantage of 59% of iPhone moms let their kids use their phone 72% of cellphone owners ages 12 to 17 are texters while only 18% of cellphone owners ages 40 to 49 are texters. A videogame download or new ring tone can cost a user several dollars, charged to his phone bill. “It is especially easy for children…to miss the small print in the lower corner of a commercial message stating that by ordering these 'extraordinarily inexpensive' services they commit to a standing, chargeable subscription” Source:Greystripe Mobile Advertising Insights Report:iPhone Mom 2009; Forbes.com article: An 'Incredible' Marketing Ploy

Traditional marketing focus on…. Finding customers using techniques that are poorly targeted and interrupt people: Outbound cold-calling Print advertising T.V. advertising Junk mail Spam Trade shows Source: Facebook for business, HubSpot Blog: Rick Burnes, 2008

Costs to reach customers Trend #3

“Less bang for the buck” Soft Drink sales down 2.1% in ’09 (after a decline of 3% in ’08) Advertising during the Olympics has increased by 40% in 10 years (1996 to 2006) Pharmaceutical promoting in the US has increased from $11.4B to $29.9B between 1995 and 2006 20% of US and British doctors now refuse to see any sales representatives. Source: Centaur Communications Ltd ; PricewaterhouseCoopers LLP; Nielsen Monitor-Plus 2008

More advertisers = More competition “Pay-per-click ads are being driven up in costs as the demand for online ad space increases.” [$10.9B annual spend in “search” by companies in US] * SEARCH is defined as: fees advertisers pay Internet companies to list and/or link their company site domain name to a specific search word or phrase It now costs 3X more in 2008 than it did in 1992 to reach perspective buyers. Source: PricewaterhouseCoopers LLP and Interactive Advertising Bureau (IAB); Pacific Bell study 2009; Implied by Design LLC

Yes... the playing field looks dismal However, there is a secret combination to achieving immediate results for your business.

But more importantly ... There will be a positive impact in people’s lives!

The combination to “Thrive” Source: dotmanagement.com.ar

The combination to “Thrive” 1 Get the ‘Right’ Information Source: dotmanagement.com.ar

The combination to “Thrive” 1 Get the ‘Right’ Information 2Educate (Think: What have I ‘Left’ them with?) What is the ‘Right’ Way? Source: dotmanagement.com.ar

The combination to “Thrive” 1 Get the ‘Right’ Information 2Educate (Think: What have I ‘Left’ them with?) 3What is the ‘Right’ Way? Source: dotmanagement.com.ar

‘right’ Information 1st code to the Combination

Climb the Wisdom Ladder HOW? Your company solves problems and has information that makes people’s lives better–financially, emotionally, physically. What are they? People buy benefits not features. List yours! "People don't want to be sold! People want to buy!” How can you help them? People want solutions. Do you know what problems they have? Bottom Step: DATA Raw counts of things, that have no meaning Second Step: INFORMATION Put data together related to a subject to yield information Third Step: KNOWLEDGE Interpret and understand the body of information Forth Step: WISDOM Synthesize various streams of knowledge to make informed judgments Source: Jeffrey Gitomer's Little Red Book of Sales Answers; Adrian Mullan‘s Understanding Features and Benefits; Dr. A. J. Schuler - How to Build Wisdom and Prosper in an “Information Age”

Know what people trust Consumer Trust in Advertising by Channel 12+% increase in consumer trust “Persons aged 30-34 are uniquely prone to trusting online advertising of different forms.” Source: Global Consumer Trust in Advertising by Channel 2009 - Nielsen Global Online Consumer Survey

Help others... Help you 90% of corporate executives surveyed felt a Strategic Alliance or Joint Venture with another company was absolutely essential to maintain a competitive edge. The number of business alliances is growing by 20% a year with 10,000 new alliances being reported in the last 12 months alone Businesses anticipate strategic alliances accounted for 25% of all revenues. Source: 2005 Commonwealth Alliance Program (CAP), 2002 enterprise.com survey; 2001 Abraham Publishing; Trendsetter Barometer PwC

Help others... Help you Source: 2005 Commonwealth Alliance Program (CAP), 2002 enterprise.com survey; 2001 Abraham Publishing; Trendsetter Barometer PwC

Help others... Help you 90% of corporate executives surveyed felt a Strategic Alliance or Joint Venture with another company was absolutely essential to maintain a competitive edge. The number of business alliances is growing by 20% a year with 10,000 new alliances being reported in the last 12 months alone Businesses anticipate strategic alliances accounted for 25% of all revenues. Apple-Motorola-IBM PowerPC Verizon-Vodafone = Verizon Wireless Microsoft -Yahoo Source: 2005 Commonwealth Alliance Program (CAP), 2002 enterprise.com survey; 2001 Abraham Publishing; Trendsetter Barometer PwC

educate 2nd code to the Combination

Share your Information On-line ,[object Object]

If advertisers—especially those who are significantly underutilizing the medium and sticking with what is in their comfort zone—dedicated a “fair share” of ad expenditures based on this simple share-of-mind analysis, Internet ad revenues should be roughly 20% greater.A way to get more than you bargained for! Source: Global Consumer Trust in Advertising by Channel 2009 - Nielsen Global Online Consumer Survey

It’s all about them... not You! Push your message >>> Outbound Give them what they want >>> Go Inbound! "The key is for advertisers to use and evolve the dynamic properties of the internet to attract customers, and develop relationships with them in an engaging and compelling manner to keep them coming back and spreading the word to their peers." Source: B2B Sales Lead Generation, Marketing Profs, 2008; Adam Berkowitz, CEO of ID Society, Inc.; Rick Burnes Blog, “Inbound Marketing & the Next Phase of Marketing on the Web”

Facts about inbound marketing It Costs Less Better Targeting It's an Investment, Not an Ongoing Expense Source: Rick Burnes Blog, Inbound Marketing & the Next Phase of Marketing on the Web

20 Year Coincidence? Source: 2010 State of Inbound Marketing Study, Mike Volpe, HubSpot Blog; Rick Burnes, Inbound Marketing & the Next Phase of Marketing on the Web

20 Year Coincidence? ? Source: 2010 State of Inbound Marketing Study, Mike Volpe, HubSpot Blog; Rick Burnes, Inbound Marketing & the Next Phase of Marketing on the Web

Average Cost per Lead 20 Year Coincidence? Inbound Marketing channels deliver 60% less per lead costs than outbound channels Source: 2010 State of Inbound Marketing Study, Mike Volpe, HubSpot Blog; Rick Burnes, Inbound Marketing & the Next Phase of Marketing on the Web

Share THEIR stories with Others Effectively integrate user-generated content into emails ,[object Object]

wisteria.com shares a note from FB fans in an email marketing campaignThe number one reason, 55% of people surveyed, post content on blogs, websites and message boards, is: “I used the product and liked it.” Source: “Chief Marketer” Penton Media publication

the ‘right’ way 3rd code to the Combination

But what is effective? Source: Forrester Research 2008; Newspaper media.com; Ferris Research; Neil Bhattacharyya, an ear, nose, and throat surgeon at Brigham and Women's Hospital in Boston, Massachusetts

But what is effective? Newspaper advertising rates GREW an average of 18% between 2005 and 2007. Source: Forrester Research 2008; Newspaper media.com; Ferris Research; Neil Bhattacharyya, an ear, nose, and throat surgeon at Brigham and Women's Hospital in Boston, Massachusetts

But what is effective? In 2008, it was calculated that people wasted 21 hours per year deleting e-mails, compared to 2.2 hours a year in 2000. Newspaper advertising rates GREW an average of 18% between 2005 and 2007. Source: Forrester Research 2008; Newspaper media.com; Ferris Research; Neil Bhattacharyya, an ear, nose, and throat surgeon at Brigham and Women's Hospital in Boston, Massachusetts

But what is effective? Multi-sensory, educational, entertaining information Give them something to remember you or your company by. They will be grateful and you will create a longer lasting impression. "We know there's a link between smell and memory" Source: Forrester Research 2008; Newspaper media.com; Ferris Research; Neil Bhattacharyya, an ear, nose, and throat surgeon at Brigham and Women's Hospital in Boston, Massachusetts

Give people what they want “Advertising as an anti-recession tool… Ad budgets should be related to the company's goals instead of to last year's sales or to next year's promises” Source: The Nielsen Company; Harvard Business Review Article

Give people what they want TRY A Little APPRECIATION “Thank You” gifts ,[object Object]

GiveawaysTheir Opinion Heard ,[object Object]

Survey… listen to what they thinkTheir Choice to Engage ,[object Object]

Mobile Message – opt-inAND A Little EDUCATION Be guest on a radio show Take part in a training course as an authority on a subject. Share via Facebook and Blogs … ask for people’s permission and feedback Create special reports and white papers. Source: The Nielsen Company; Harvard Business Review Article

Use TV Effectively Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine

Use TV Effectively are you an Upstart Brand? Get BIG! Networks are looking for non-competitive brands to create incremental revenue. CereTom [a product placed on the TV show “ER”] experienced a 60% uptick in website traffic and received 10 direct inquiries from hospital reps regarding the $330,000 device, when their average number of inquiries was about two to three calls per month. Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine

Use TV Effectively are you a Large brand?Get in Early! Before a show or personality is well-known, get in at the ground floor of a production. are you an Upstart Brand? Get BIG! Networks are looking for non-competitive brands to create incremental revenue. CereTom [a product placed on the TV show “ER”] experienced a 60% uptick in website traffic and received 10 direct inquiries from hospital reps regarding the $330,000 device, when their average number of inquiries was about two to three calls per month. Ponds was the sole presenting sponsor of “The Starter Wife”, with normal commercial breaks filled with real life stories of women who personified the ‘Ponds’ brand. Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine

Use TV Effectively are you a Large brand?Get in Early! Before a show or personality is well-known, get in at the ground floor of a production. are you an Upstart Brand? Get BIG! Networks are looking for non-competitive brands to create incremental revenue. CereTom [a product placed on the TV show “ER”] experienced a 60% uptick in website traffic and received 10 direct inquiries from hospital reps regarding the $330,000 device, when their average number of inquiries was about two to three calls per month. Ponds was the sole presenting sponsor of “The Starter Wife”, with normal commercial breaks filled with real life stories of women who personified the ‘Ponds’ brand. Quality product placement in television boosts brand awareness to 57.5% when combined with an ad. Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine

Use TV Effectively Example: “Top Chef” in March of 2008 was the #1 rated food show. So what, right? What is the value for a company not in the food industry? Bravo Network ranks above all network and cable programmers for: In-program placement brand recall (63% vs. others at 46%) Brand opinion (26% vs. others at 12%) Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine

Be in two places at once Source: Harris Interactive Inc. “Radio and the Internet” 2007; Other lines of Enquiry

Be in two places at once Campaigns which use both media have the opportunity to connect with consumers in multiple ways. Source: Harris Interactive Inc. “Radio and the Internet” 2007; Other lines of Enquiry

Be in two places at once On a daily basis, radio and the Internet together reachabout83% of the 18-54 population Source: Harris Interactive Inc. “Radio and the Internet” 2007; Other lines of Enquiry

What will this combination do for you? Information. Education. Right Way

Help you reach your goals Make meaningful connections to customers, so they think about the value brought to them. Grow a database of names for re-marketing and staying in touch with them. Strengthen your brand as a leader in its industry.

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3 most dangerous trends facing businesses and what one can do about them.

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