Cost Effective Advertising And Promotion
•
5 likes•1,995 views
This document discusses promoting a business cost effectively through strategic marketing. It emphasizes the importance of understanding customers' needs and motivations for buying. Traditional marketing theories may no longer be effective due to factors like increased choice and less time. Instead, marketing should focus on relevant customer conversations and aligning communications with the customer's buying cycle. The document provides tools for segmentation, developing unique selling propositions, and the marketing mix (product, price, place, promotion). It stresses that differentiation now occurs through interactions with customers and that marketing messages must be customer-relevant to be effective.
More Related Content
What's hot
What's hot (20)
Similar to Cost Effective Advertising And Promotion
Similar to Cost Effective Advertising And Promotion (20)
Recently uploaded
Recently uploaded (20)
Cost Effective Advertising And Promotion
- 1. Promoting Your Business Cost Effectively 2009
- 2. Cost Effective Advertising & Promotion Who are you talking to? What needs does your product / service fulfil? What motivates people to buy? Creating a logical sequence to hold interest. Making your budget work harder!
- 3. Business challenge Maximise value of existing customers Minimise the loss of existing customers Find enough new customers to keep growing
- 6. Marketing “Marketing is about conducting a dialogue over time with a specific group of customers whose needs you get to understand in depth and for whom you develop a specific offer with a (sustainable) differential advantage over the offers of your competitors.” Prof. Malcolm MacDonald Cranfield University. “When you have something to shout about, then shout! If not; then shut up until you do.”
- 7. Strategic Tools Life Cycle Analysis Ansoff Matrix Portfolio Matrix
- 8. Safety first Time of adoption 34% Late majority 34% Early majority 13.5% Early adopters 2.5% Innovators Cumulative pattern Time of adoption Cumulativeproductionofadopters 1.00 0.80 0.60 0.40 0.20 0.0 16% Laggards
- 10. BCG Matrix / Portfolio Matrix
- 11. Inter-tech: 5 year performance analysis Performance (£million) Base Year 1 2 3 4 5 Sales Revenue - Cost of goods sold £254 135 £293 152 £318 167 £387 201 £431 224 £454 236 Gross Contribution - Manufacturing overhead - Marketing & Sales - Research & Development £119 48 18 22 £141 58 23 23 £151 63 24 23 £186 82 26 25 £207 90 27 24 £218 95 28 24 Net Profit £16 £22 £26 £37 £50 £55 Return on Sales (%) 6.3% 7.5% 8.2% 9.6% 11.6% 12.1% Assets Assets (% of sales) £141 56% £162 55% £167 53% £194 50% £205 48% £206 45% Return on Assets (%) 11.3% 13.5% 15.6% 19.1% 24.4% 26.7%
- 12. Performance (£million) Base Year 1 2 3 4 5 Market Growth 18.3% 23.4% 17.6% 34.4% 24.0% 17.9% Inter-tech: Market-based performance Customer Retention (%) New Customers (%) % Dissatisfied Customers 88.2% 11.7% 13.6% 87.1% 12.9% 14.3% 85.0% 14.9% 16.1% 82.2% 24.1% 17.3% 80.9% 22.5% 18.9% 80.0% 29.2% 19.6% Inter-tech Sales Growth (%) Market Share(%) 12.8% 20.3% 17.4% 19.1% 11.2% 18.4% 27.1% 17.1% 16.5% 16.3% 10.9% 14.9% Relative Product Quality Relative Service Quality Relative New Product Sales +10% +0% +8% +8% +0% +8% +5% -20% +7% +3% -3% +5% +1% -5% +1% 0% -8% -4%
- 13. Why customers quit 1% die 3% move away 5% develop other friendships 9% for competitive reasons 14 % because of service dissatisfaction 68% ATTITUDE OF INDIFFERENCE TO CUSTOMER FROM SUPPLIER.
- 14. Tactical Tools Segmentation 4 P’s SWOT Analysis
- 15. Marketing Product / Service Differentiation USP’s The 4 P’s - Promotion - Product - Price - Place - (People)
- 17. Customer Types
- 18. Products What do you sell? What do your customers buy? What are these people buying?
- 19. Product So what do you do? Easy to describe? Differs for customers / segments? ENABLES BENEFITS.
- 20. Pricing Strategies How - Hourly / Daily rate - Cost plus - Gross margin - Market based Competition (Direct / Indirect) Strategy (High/Low) Why are your costs higher / lower TALK VALUE NOT PRICE Can you differentiate on it?
- 21. Promotion Positioning Targeting What promotional material Advertising Networking / Collaboration Introductory Offers / Sales Promotion Marketing budget?
- 22. Promotional activities by medium Personal contact Direct mail Telephone Advertising Electronic Recognise potential Initiate dialogue Exchange information Negotiate / tailor Commit Medium Activity
- 23. Competition Who (Direct & Indirect) Where Strengths & Weaknesses Opportunities & Threats PEST Strategies (yours & theirs)
- 24. Creativity in the Delivery
- 25. Getting it out there Importance of your story Who to talk to / with When to talk with them What message How to get their attention.
- 26. Defining What You Do Easier said than done Products / Services Easily understood SPEAK IN YOUR CUSTOMERS LANGUAGE
- 28. Change the message to suit the buyer MEANS DOES IS Executive Conversation Technical Conversation
- 29. Understanding the buyers motives Business perfectionist Radical thinkers Profit engineer Save my budgets Business general Save my career Conservative technocrat Technical idealist Radical architect “Reward” “Relief” Executive Technical
- 30. Elevator Speech Rule of 3 1. List 3 things that you did or do for a customer 2. Describe what they did for your customer – so that they could... 3. Back it up with an example.
- 31. Elevator Speech “Our software helps businesses to quickly and easily create detailed, error free quotes with tailored documents; so that it now costs them less to sell more..” or, put another way: ...provide more time for sales people to sell (Sales Director) ...reduce their quote to order processing costs (Finance Director) ...reduce dependency on key individuals and plan for business continuity (Managing Director) ...make it easier to introduce new products and enter new markets (Marketing Director) For example: A customer reduced a four hour quote time down to just 19 minutes. This, along with the fact that their quotes can now be created by more people has smashed the average elapsed time from 2 weeks 24 hours. They also reduced product compatibility errors to zero saving them over £3,000 per month
- 32. Scary Numbers 33% Information increase per year 85% Customers decision based on interaction in the field. 90% Marketing tools unused x No. of sales people / channels = No of different messages ______ Source - Booz Allen Hamilton and Corporate Visions inc
- 33. Consistent Marketing and Sales Message
- 34. Differentiating your message is hard More confusion less clarity Customers are overloaded with messaging & promotions Shorter window of opportunity Difficult to capitalise on even subtle product / service difference More credible competition Proliferation or consolidation creates markets filled with similar products. “It doesn’t matter what product you buy. Most products are now good enough to serve the majority of users most of the time.” Source: Simon Hayward VP & Gartner Fellow
- 35. You and your competition: The customer view 70% of marketing and sales executives identified “the ability to differentiate your product” as the biggest threat to market growth . Source: Sales & Marketing Management and American Association survey of 1500 sales and marketing executives
- 36. Where does differentiation occur? All things ‘considered’ equal, customers are relying more on their interactions with field sales representatives or customer facing staff, to find differentiation. Customer conversations are the frontline Develop and deliver messages that create a differentiated customer experience. Opportunity to join up sales and marketing.Only 15% customer brand decision is based on perceptions of company and product Source: Booz Allen Hamilton “Channel Champions”
- 37. Importance of the customer interface experience
- 38. Make your marketing work harder Invented in 1910 15 years before anyone bought it!
- 40. Me, me, me! The world revolves around (me)
- 41. Email
- 42. Which way are your chairs facing?
- 43. What’s broken? 1. Brand messages do not reflect desired customer conversations 2. Communication tools do not match the consultative buying cycle 3. Brand content is not presented to sales people in the way they want to learn. Customer relevant messages Messages for and at key moments JIT access.
- 44. Placing your customer at the centre 1. Brand messages do not reflect desired customer conversations 2. Communication tools do not match the consultative buying cycle 3. Brand content is not presented to sales people in the way they want to learn. Customer relevant messages Messages for and at key moments JIT access.
- 45. # 1 writers tool
- 46. Brand Message Outline GOALS Provide a repeatable messaging process Produce high-quality, consistent, distinctive customer messages Drive your brand message down to a street level conversation.
- 47. Company Relevant v Customer Relevant Company - Relevant Customer - Relevant Talk about who we are What do our customers want to accomplish? Label our core competencies What’s keeping them from optimally achieving this? Showcase our leadership in these areas What relevant point of view or insight can we share? Highlight the capabilities that make this possible How do our capabilities deliver a solution? Describe some generic customer benefits What distinctive value can that bring to our customers? Here are some examples of our latest breakthroughs Here are some examples of where we’ve done this before Attempt to sell by: Promoting core competencies Making capabilities presentations Convincing and persuading. Empower buyers to: - Achieve goals - Solve problems - Satisfy needs.
- 48. Example: Would you delegate the conversation? conversationCompany – Relevant Positioning Customer - Relevant I’m with Coverall Cleaning Services we’ve been in business 25 years and have over 1,500 franchise locations. I’m with Coverall Cleaning Services and we are calling Medical Facilities Managers to find out whether you feel your after hours cleaning services are contributing positively to your patient and staff safety objectives. We are the leader in healthcare cleaning, providing services to cover 8,000 medical facilities A recent CDC study indicated that of the infections caught inside healthcare facilities by patients and staff, 1/3 were due to improper disinfecting and cross-contamination due to poor cleaning techniques. Were you aware of that? We’ve led the way in adopting the latest cleaning technologies such as micro-fibre, multi-coloured cleaning tools, flat mops and back-pack vacuums, as well as P&G hospital-grade chemicals that help us provide a healthcare quality clean. What if you could leave work each night with complete confidence that your after-hours cleaning service personnel are trained, certified and following proper disinfecting process as well as using the latest tools and techniques proven to reduce cross-contamination How satisfied are you with your cleaning service? Are you getting the value you want for the price? How might this help you with your goal of ensuring your facility is doing all it canto ensure patient and staff are safe? What impact could it have if you weren’t sure of these things? Can we get 10 minutes of your time to measure your facility and give you a quote and see if we can do better? There is no obligation. Coverall Cleaning uses micro-fibre technologies in its cloths and mops instead of cotton and wet mopping. Studies show we can reduce bacteria by 99% compared to 30% with traditional techniques. In addition, our multi-colour cloth and mop system has been proven to help avoid cross-contamination. Basically it means that no longer will your cleaners mistakenly wipe off your phones with the same rag they use to wipe off the toilets. Based on our measurements, we’ll be able to give you an immediate quote to see if we’d be a good fit. If you sign up that day, we can even offer a special Can we get together for 30 minutes to assess your after hours cleaning approach and then provide you with a recommendation for ensuring you are maximizing the positive impact on patient and staff
- 51. Value is found between the pain and the gain
- 52. Placing your customer at the centre 1. Brand messages do not reflect desired customer conversations 2. Communication tools do not match the consultative buying cycle 3. Brand content is not presented to sales people in the way they want to learn. Customer relevant messages Messages for and at key moments JIT access.
- 53. Buying cycle relevant conversations
- 54. Buying cycle relevant conversations
- 55. Placing your customer at the centre 1. Brand messages do not reflect desired customer conversations 2. Communication tools do not match the consultative buying cycle 3. Brand content is not presented to sales people in the way they want to learn. Customer relevant messages Messages for and at key moments JIT access.
- 56. Situation Relevant Access 1. What Market Administrative Engineering Manufacturing Financial Services Education Healthcare Retail Call Centre Accounting 2. Select a Decision Maker Chief Financial Officers Business Line Supervisors Directors of Human Resources 3. Identify the key Objective Improve the quality of candidates for temporary positions Provide quicker placement (‘Fill rate’) Reduce turnover of temporary staff Speed ramp-up and productivity Improve temporary staffing process management Manage cost of temporary staffing support Enable staffing vendor consolidation to save money.
- 57. We need to reduce turnover of temporary staffRelated challenges Getting temporaries that are not a good fit with the assignment or culture Temporary staff doesn’t have a broad enough skill set to flex with the job requirements Temporaries are too easily lured away before finishing the job. In fact: It costs up to 30% of a positions first year salary to replace and retain after turnover – not including the time, frustration, and potential de- motivation of other employees who are affected by turnover. Probing questions Are you struggling with temporary administrative staff who are unreliable, unhappy with their assignments, a poor cultural fit, or who leave too quickly for better job offers? How does frequent turnover of temporary staff impact your company in terms of training and re- training time? Customer continuity? Morale of other employees? What is your best method for recruiting temp employees? Are you usually hiring to fill a temporary position, or hoping to find someone who will fit the job and culture as a long term employee? Proof: ABC Global – Glos. Reduced staff turnover from 75% to 5% in their call centre We need to “reduce turnover of temporary staff” Our Insights: • Pre-Screening & Assessment •Realistic job previews •Free skills training •Stay put bonuses
- 58. We need to reduce turnover of temporary staffDiagnostic Questions How often do you find that administrative or temporary employees do not have the proper skills for the position? What do you do if a temporary person is not a good cultural fit for your work environment? What impact does that have on supervisors who struggle with temps who are unhappy or unreliable?. Solution Scenario: What if you only received candidates that had passed a rigorous pre- screening process matching their skills and personality to the position? Value Creation Statement: Our Pre-screening and Testing process thoroughly assess and qualify the candidate that’s the best fit for the job. Proper screening and testing has been shown to lower turnover by 4x in the first 90 days. What do you want to do? Conversation starter Appt setting script Solution brief We need to “reduce turnover of temporary staff” Our Insights: • Pre-Screening & Assessment •Realistic job previews •Free skills training •Stay put bonuses
- 59. The Message Process 1. Brand messages do not reflect desired customer conversations 2. Communication tools do not match the consultative buying cycle 3. Brand content is not presented to sales people in the way they want to learn. Customer relevant messages Messages for and at key moments JIT access.
- 60. Who should we be talking to?
- 61. Mass Advertising Theory More choice Less time Ignore. The model no longer works Buy ads get increased awareness / distribution Sell more products Buy more ads Make more profit
- 62. Viral Marketing Theory Remarkable Hard to ignore Not spamming. Start small and watch it grow Make something WORTH TALKING ABOUT Tell someone who WANTS TO HEAR from you Get PERMISSIO N to tell them about your next fashion They do your MARKETING for you
- 63. Steal or Grow Target people that have decided to buy? Create and grow the market?
- 64. Who says what to who... 85% - tell 10 people 13% tell 20 people 2% make it a life long goal.
- 65. OTAKU
- 66. Who to talk to... Talk to people that are listening Make sure they tell others Credible. Midnight Ride Paul Revere William Boyd
- 68. Review Importance of your story Who to talk to / with When to talk with them What message How to get their attention.
- 69. Technology
- 70. How Will You Promote Your Business?
- 71. Pre-web Mainly printed collateral & Face2Face Printed Advertising Brochures, newsletters, leaflets Media Relations & PR Direct Marketing Market Research Events, Exhibitions, Conferences etc. STILL IMPORTANT BUT....
- 72. Web 1.0 (Mid 1990’s) First generation websites Static pages Html brochure ware (later PDF) Limited interaction with site visitors Some integration with email.
- 73. Web 1.5 (Late 1990’s) Shared drives Intranets Extranets STILL MAINLY INFORMATION CENTRIC
- 74. Web 2.0 (Social Media) Primarily Internet & Mobile based tools for people to share and discuss information. People having conversations on-line Also Enterprise Media (Social Business)
- 75. Social Media Discussion Forums Wiki’s (Open, Organisation, Internal, Publication) PodCasts Blogs Micro Blogging (Twitter) RSS Publishing (Really Simple Syndication) Social Networking (Facebook, Linked-in etc) Collaboration Spaces (Trip Advisor) Tagging / Sharing (Delicious) Sharing (Google Doc’s, SlideShare, Flikr) Mash-ups (Google Maps) Virtual Worlds (SecondLife)
- 76. Web 2.0 (Social Media)
- 77. The shift Web 1.0 Reading Companies One-way Lecture Advertising Owning. Web 2.0 Writing Communities Two-way Conversation WOM Sharing.
- 78. The shift Was B2B B2C One to many Monologue Control of message Control of media. Increasingly B2C2B B2I2C Many to Many (C2C) Dialogue User generated content User self publishing.
- 79. Lessons Learned Start Small Invest wisely (low to no cost) Manage expectations Identify issues, the respond i.e. blog for a reason, not just because you can Spread the risk (who will survive) Monitor and moderate Bans don’t work (but you can get the sack!) Cant ignore it.
- 80. Technology and its impact Website Google CRM Email Blogs Professional Networking.
- 83. CRM Data Quality Ease of Use Power of Queries.
- 84. Email Segmentation Relevant messages Touch point Frequency Constant Contact / MailChimp etc “If your email isn’t personal its broken.” Seth Godin
- 85. Email 3x ROI of traditional marketing efforts More likely to get a response to an email than by phone - even if you have a relationship Approx. 146m adults use email every day 82% of marketeers consider email their most important advertising tactic. Personalising emails and segmenting your audience more than doubles the effectiveness of your email efforts., yet only 4% of marketers engage these tactics. Email has reached 32% of total market penetration, topped only by TV which has 39%. Source: Sell Smarter – Embrace Sales 2.0 Justyn Howard
- 86. Blogs Objective Audience Message Frequency SEO – Technorati.com “BLOGS TELL IT LIKE IT IS AT THE STREET LEVEL” Brad Inman, Inman News
- 87. 8 Reasons for blogging Credibility Interest level v Newsletter Power Linking Presence. Branding Building Potential Customer Relationships Traffic Springboarding. FeedBurner.com, Technorati.com, eZineArticles.com
- 89. Reasons to get on LinkedIn Shy? 37m business professionals currently belong (26m more than in 2007) 100,000+ new busines professionals join weekly Average user is 39yrs old and earns $139,000 pa Average experience level ogf LinkedIn users is 15yrs All Fortune 500 & FTSE 100 companies are represented at executive level The average Harvard Bsuienss School graduate has 58 connections The average Google employee has 47 connections Membership includes 89,000 CEO’s and approx 750,000 C level executives Reserach, Find, InMail, Jobs, Questions, Companies, Recommends
- 90. On Line Reputation Social Networking, Comments, Pic’s, CV’s etc. Google
- 91. Twitter Outbound / Inbound Unhappy customers (inc competition) Service Searchers / Researchers TweetDeck
- 93. Summary Theory What marketing is and why it is important, Segmentation, 4 p’s, SWOT Creative Bringing sales & marketing closer, Message, Who to speak to and When Technology How it can help us, particularly in networking WOM & selling smarter.