2009 May | brandSTOKE

Archive for May, 2009

May

For smarter strategy, share the budget upfront

By Kirk 1 Comment

Categories: budgeting, new business and strategy

istock_000001714082xsmall Ask any project manager: Knowing the availability of resources is critical to achieving the desired outcome.

Money is, of course, the resource, and while zero-base budgeting is a nice idea, unlimited budgets are practically non-existent in the real world.

So, when requesting proposals from marketing consultants, why don’t CMOs save everyone a lot of trouble and share the budget upfront?

Apparent reasons for not doing so are:

Reason: If the budget is revealed, the consultant will find a way to spend all of it whether the project warrants it or not.
Reality: There is never enough budget to do the job right anyway, so why not share it upfront and get more informed strategic thinking.

Reason: Once the consultant knows the budget, he or she will carve out more profit.
Reality: The CMO can always negotiate the consultant’s fee as a line item within the total budget.

Reason: The CMO wishes to hold some of the budget back as contingency.
Reality: Funds for contingencies can be set aside upfront.

Most importantly, the consultant will make much smarter strategic recommendations with full knowledge of the budget. The amount of funds directly affects the strategy and tactics. And the consultant won’t have to be sent back to the drawing board for overshooting the budget.

The ideal scenario: Trust exists between the CMO and the consultant, and they collaborate on the best strategy within the available budget.

Do you share the budget upfront?

P.S. Just found this excellent May 22 post, “Confronting The “B” Word,” from Nathan Ritchie on the same topic. Great line: “I can spec it to your budget or I can budget it to your specs. Which is more important to you?”

May

Price or convenience strategy: Arby’s vs. Valvoline

By Kirk 3 Comments

Categories: promotion, retail and strategy

Near where I work, an Arby’s restaurant and a Valvoline Instant Oil Change service center are side by side. In front of each today was an employee with a sandwich board. The Valvoline sign said, “NO WAIT.” The Arby’s board read, “FREE SHAKE.” (The fine print: “with sandwich purchase.”) Both employees looked forlorn.

Convenience or price? Which is the better promotional strategy in the short run? The long run?

How do prospects view Valvoline’s no-waiting promotion:

When I drove by, the doors were open, the bays empty. It was a little sad. “There’s no one here. Please stop and talk to us. We’re lonely!”
Immediate service is a plus. I noticed, however, that I could have had it anyway. Sign or no sign, I would have been the only customer there. It’s not like they busted a hump to offer it to me. It cost them nothing, so I don’t perceive any added value.
Still, not having to wait is attractive. If I needed an oil change, the no-wait benefit might motivate me. Their business model requires prompting customers every three months or so.
Long-term, Valvoline’s value proposition remains intact, for better or worse.
Short-term, it’s not much of an incentive.

How about Arby’s promotion?

“Free” always draws traffic, right? In any economy.
“This Wednesday only” gives it urgency. “Do it now! Tomorrow you’ll have to actually pay with actual money!”
Most quick-service restaurant customers are used to meal deals, special offers, and coupons. They’ve been trained never to buy at full price. Accordingly, there will be no long-term loss of brand equity. A free shake is not a recession strategy — it’s business as usual.

Are you more motivated by low prices or by convenience?

May

12 things to do before the upturn

By Kirk Closed

Categories: advertising, budgeting, interactive marketing, mass media, research, social media and strategy

Sales are flat. Travel is canceled. Your budget has been cut. It’s a good time to do some housekeeping.

With an eye toward the eventual upturn, here are 12 tips to get your strategic marketing plan ready:

Take the time to retreat with senior leadership and strategize now. Think long-term.
Audit your competitors.
Talk to your customers. Conduct a satisfaction survey.
Review your customer relationship management (CRM) program. Rebuild your database. Ask for email addresses and mobile numbers. You’ll need them soon.
Update your brand positioning and message strategies.
Review and update your advertising and sales materials. Or at least get them ready to print.
Keep in touch with enewsletters.
Reuse old ads. Save on production.
Media rates are down. Buy more with less money and stand out from your competitors. Or shift the savings to other channels, such as search engine marketing.
Update your website with more functionality for customers. Make sure it is search engine optimized.
Get up to speed on the newer interactive channels–social media marketing and mobile marketing. Set up and monitor your social media channels.
Train your sales staff.

Which other ones can you add?

May

Setting social media up for failure — don’t advertise

By Kirk Closed

Categories: advertising, budgeting, guest posts, mass media and social media

I’m pleased to share the following guest post by Gary Moneysmith. At the time of this posting, Gary was the Interactive Strategy Director and social media guru at Conrad | Phillips | Vutech (where I work). Be sure to visit his blog, Social Media @ Work & Play, for more insights.

Dear Marketers:

You can’t do it all with social media. There, I said it. I know marketing budgets have been slashed and management is clamoring to use those free, newfangled web 2.0 tools. But you can’t turn to social media to save the day. It sucks, I know.

Social media is a slow build. Blogs and Twitter don’t just “go viral” before your eyes. It’s more like planting a seed, fertilizing it and tending to it carefully over time. The more you support it with complementary traditional advertising, the better the odds of it taking root and blossoming. Cross-channel marketing of social media initiatives is extremely helpful, but easily overlooked, especially during tough economic times. Remember the Subservient Chicken campaign by Burger King? Yah, it was supported by a national television advertising campaign that’s cost was certainly NOT chicken feed. They spent a few hundred grand on a cool website/social media initiative, but then invested several million dollars in advertising to support it. Very important point not to forget.

Or how about Barack Obama’s presidential campaign that set a new standard of excellence for grassroots, internet marketing–seemingly deploying every social media channel available. According to BusinessInsider.com, Obama’s spend on the internet was a surprisingly low $8 million. That’s just 3% of the $245 million he spent on television advertising. Clearly he wouldn’t have spent such a colossal sum on television if it wasn’t necessary.

Change doesn’t have to be a light-switch proposition. Start a social media initiative today, but be sure to make sure it’s “on brand” and supported by complementary advertising and public relations. Over time (months or years), transition money from the traditional media budget into the social media campaign itself, but only after it has sprouted and is displaying positive signs of growth. Abandoning a social media campaign to survive on its own does nothing more than waste your time and money, and seal its fate as a failure.

Sincerely,

Gary

May

Why strong design is always on Target

By Kirk 8 Comments

Categories: advertising, art direction & design, identity, retail and standards

Here in the Information Age, we receive more words than can possibly register. We are deluged with data.

Funny thing. When everyone is shouting, most marketers attempt to shout louder to be heard. Most strive for share of voice by out-explaining their competitors.

In a previous post, I suggested that using fewer words demonstrates focus and clarity. “Less” stands out from the rest. “Less” is often most powerful.

As an example, this wraparound outdoor signage at West 42nd Street and 7th Avenue in New York City works without words. Not even a brand name. Of course, it is Target, a master of restraint.

Target’s effective use of simplicity arises naturally from its philosophy. “Great design is the essence of the Target brand. Since day one, our company founders recognized that the appeal of smart, stylish, well-designed products and stores would set Target apart.”

In its marketing, Target applies its standards consistently. Its advertising is quickly recognized. In its category, it owns the colors red and white, the way UPS owns brown and Fiberglas owns pink. (Owens Corning, maker of Fiberglas insulation, has actually trademarked the color pink.)

The target icon is so simple and obvious it is recognized without the Target name.

No name — ’nuff said. Which other brands can get away with this?

May

6 reasons the recession is good for TV advertising

By Kirk 2 Comments

Categories: advertising, budgeting and mass media

istock_000003320639xsmall According to Digital History, the movies saved us during the Great Depression.

“Even at the Depression’s depths 60 to 80 million Americans attended the movies each week, and, in the face of doubt and despair, films helped sustain national morale.“

Sound familiar?

According to a recent survey conducted by Frank N. Magid Associates for Hearst-Argyle Television, local TV viewership is up. “Respondents to a new survey of local TV viewers around the country said they are more engaged with advertising within local TV newscasts than each of four other ‘traditional’ media evaluated.

“Ninety-nine percent of respondents said they are turning to local TV news at least as much or more frequently than in the past as a result of current economic conditions.”

Here are 6 reasons the recession is good for TV advertising:

Nearly everyone has a TV.
People are staying home more to save money.
People want entertainment to take their minds off of their economic problems.
Ad rates have dropped, encouraging advertisers to spend.
Advertisers who couldn’t afford TV before now may find it within reach.
Video shot for TV can be repurposed across channels — online, mobile, kiosks, VNRs, downloads, etc.

In his blog, Mark McLaughlin , president of McLaughlin Strategy, says, “Let’s hope this recession will see a shift back toward the importance of the TV commercial. TV commercials are scalable and repeatable opportunities to reach mass audiences with effective messages. In fact, TV commercials can be more valuable than ever because they drive online engagement efficiently.”