Thursday, October 1, 2009
Circulation Revenue - The other Revenue Stream
This is a presentation that I recently gave at Publish Asia 2009. It examines why newspapers should not lose focus on circulation revenue in the pursuit of advertising revenue and how it is possible to both increase price and hold circulation.
Friday, April 17, 2009
Thriving Beyond Surviving
The business environment is tough with low consumer and business confidence. Budgets are being cut and marketers are hunkering down to ensure that their brands and businesses (and they themselves!) survive this difficult period. This is kind of action is certainly appropriate for the times but business cycles are called cycles for a reason and it is only a matter of time before things improve. Smart marketers are planning for the inevitable upswing now to ensure that they remain ahead of this curve and set themselves up to thrive beyond this survival period.
Which Way Is Up?
How will you know that we are back on an upswing? If you wait for backward looking economic data you will only know after the event and your competitors may have stolen the jump on you. What are the forward looking indicators for your industry? Sustained stock market growth (how do you define this?)? Perhaps it’s the lunchtime queue returning to your local sandwich shop? Work out your harbinger of growth and start to monitor it now.
What then? Once you are reasonably confident that the upturn is nigh what will you do to leverage it? Plan your activity now so you’ll be ready to act quickly. Will you return immediately to your previous level of advertising (assuming you have cut now) or slowly ramp up? Will you need to bring your customers along on a new journey or reassure them that this in indeed a good time to buy / buy more? By knowing what you need to do and planning your lead times you’ll be best placed to get the jump on your competitors.
Plan Now, Save Later
Governments around the world are working hard to avoid deflation by flooding the economy with stimulating cash, however, policymakers have a poor record when it comes to overshooting the mark. Many commentators (including Warren Buffett) warn that this could lead to significant inflationary pressures (and potentially stagflation).
The best protection against rising prices is to lock in low prices (hey, I never said I was a rocket scientist!). What future costs can you hedge now? Is now the time to lock in future pricing with suppliers? Obviously be careful of committing to purchases that you may need to extract yourself from if this recession turns out to be longer than you initially expect.
Cyclical vs. Permanent
The global financial crisis had a significant impact on all manner of markets. Some of the changes we have seen will revert when things improve but inevitably we have experienced some fundamental shifts in consumer behaviour that will turn out to be more permanent. For example, will consumers revert back to name brands after trying supermarket generics and, in many cases, finding out that they are not too bad?
What changes are you experiencing in your market? Will these revert or are there some fundamental changes to be made in your business model or product offering? Now is the time to plan and commence implementing these changes.
Which Way Is Up?
How will you know that we are back on an upswing? If you wait for backward looking economic data you will only know after the event and your competitors may have stolen the jump on you. What are the forward looking indicators for your industry? Sustained stock market growth (how do you define this?)? Perhaps it’s the lunchtime queue returning to your local sandwich shop? Work out your harbinger of growth and start to monitor it now.
What then? Once you are reasonably confident that the upturn is nigh what will you do to leverage it? Plan your activity now so you’ll be ready to act quickly. Will you return immediately to your previous level of advertising (assuming you have cut now) or slowly ramp up? Will you need to bring your customers along on a new journey or reassure them that this in indeed a good time to buy / buy more? By knowing what you need to do and planning your lead times you’ll be best placed to get the jump on your competitors.
Plan Now, Save Later
Governments around the world are working hard to avoid deflation by flooding the economy with stimulating cash, however, policymakers have a poor record when it comes to overshooting the mark. Many commentators (including Warren Buffett) warn that this could lead to significant inflationary pressures (and potentially stagflation).
The best protection against rising prices is to lock in low prices (hey, I never said I was a rocket scientist!). What future costs can you hedge now? Is now the time to lock in future pricing with suppliers? Obviously be careful of committing to purchases that you may need to extract yourself from if this recession turns out to be longer than you initially expect.
Cyclical vs. Permanent
The global financial crisis had a significant impact on all manner of markets. Some of the changes we have seen will revert when things improve but inevitably we have experienced some fundamental shifts in consumer behaviour that will turn out to be more permanent. For example, will consumers revert back to name brands after trying supermarket generics and, in many cases, finding out that they are not too bad?
What changes are you experiencing in your market? Will these revert or are there some fundamental changes to be made in your business model or product offering? Now is the time to plan and commence implementing these changes.
Thursday, April 16, 2009
Great Tactical Advertising
The photo below shows how a local BMW dealer in Santa Monica responded to a national campaign by rival Audi. Bravo!
The Audi billboard promoting the Audi A4 on the left reads "Your Move, BMW". The BMW response shows the BMW M3 with the headline "Checkmate".
The Audi billboard promoting the Audi A4 on the left reads "Your Move, BMW". The BMW response shows the BMW M3 with the headline "Checkmate".
Friday, February 13, 2009
Marketing in a Downturn
All the textbooks say spend up in a downturn to set yourself up for the inevitable upswing - but how many marketers are doing this? McDonald’s is one marketing company that certainly is looking to make hay whilst the sun is obscured behind the storm clouds with advertising spend tipped to increase by just under 5% this year according to the Australian Financial Review.
McDonald’s Australian chief, Peter Bush, was quote stating “We see an increased ad budget as a source of competitive advantage. At a time when other companies will be cutting back, we’ll be able to increase our presence, market share and sales.”
Research from the early 1980’s backs this up. Tracking the performance of 600 companies in the United States researchers found that the companies that decided to hold or increase their ad budgets during the 1981-82 recession had significantly higher sales after the US economy recovered. Companies that advertised aggressively during the recession had sales 256% higher than companies that did not continue to advertise.
When bottom lines are threatened it is tempting for companies to look for a quick fix by cutting costs. This then raises the age old question – Is marketing spend a cost or an investment?
I’m not suggesting that marketers should be reckless, clearly we need to ensure that we extract maximum shareholder value from every dollar that we spend but economic downturns can provide an opportunity to get a leg up on the competition and position our brands to extract maximum leverage from the current environment as well as the during the inevitable upturn.
Brand Strategy
Now is a good time to revisit your brand strategy (if you haven’t already). This is not to say that you should be reinventing your brand but you should consider tweeking the expressions of your core values to ensure that they reflect the current environment and maximise opportunities.
Accepted wisdoms of the last few years may no longer apply so question everything. For example, conspicuous luxury consumption is out, austerity is in. Foxtel recognise this in their recent promotions, positioning their service as a cost saver (no videos and movies, affordable bundle with no install cost and short contract) rather than a luxury.
At a minimum you should endeavour to keep your share of voice, however, you may find that you can even grow it on the same (or lower) spend.
Sales Promotions
Sales promotion should similarly tap into the current mood. Now may not be the best time to give away a “frivolous” prize but rather to give your customers (and community) something that is more meaningful. eg
1. Value bundles – ie Meal deals, price caps, etc
2. Value adds – Bonus (useful / valuable) widget
3. Support for charity – This is a classic win-win-win. Your customer feels good about purchasing from you, your brand affinity is increased and charities get a leg up at a time when donations are down.
Leverage Every Touch Point
Your company communicates with its customers (and potential customers) in many different ways but are you maximising your returns on these. Bill inserts, customer service contacts, etc. For more on this see my 4 September, 2008 post http://edwardbaral.blogspot.com/2008_09_01_archive.html
2009 is not a time for the faint-hearted. Be brave, think differently and make sure your brand is ready for the inevitable upturn – their called “cycles” for a reason!
McDonald’s Australian chief, Peter Bush, was quote stating “We see an increased ad budget as a source of competitive advantage. At a time when other companies will be cutting back, we’ll be able to increase our presence, market share and sales.”
Research from the early 1980’s backs this up. Tracking the performance of 600 companies in the United States researchers found that the companies that decided to hold or increase their ad budgets during the 1981-82 recession had significantly higher sales after the US economy recovered. Companies that advertised aggressively during the recession had sales 256% higher than companies that did not continue to advertise.
When bottom lines are threatened it is tempting for companies to look for a quick fix by cutting costs. This then raises the age old question – Is marketing spend a cost or an investment?
I’m not suggesting that marketers should be reckless, clearly we need to ensure that we extract maximum shareholder value from every dollar that we spend but economic downturns can provide an opportunity to get a leg up on the competition and position our brands to extract maximum leverage from the current environment as well as the during the inevitable upturn.
Brand Strategy
Now is a good time to revisit your brand strategy (if you haven’t already). This is not to say that you should be reinventing your brand but you should consider tweeking the expressions of your core values to ensure that they reflect the current environment and maximise opportunities.
Accepted wisdoms of the last few years may no longer apply so question everything. For example, conspicuous luxury consumption is out, austerity is in. Foxtel recognise this in their recent promotions, positioning their service as a cost saver (no videos and movies, affordable bundle with no install cost and short contract) rather than a luxury.
At a minimum you should endeavour to keep your share of voice, however, you may find that you can even grow it on the same (or lower) spend.
Sales Promotions
Sales promotion should similarly tap into the current mood. Now may not be the best time to give away a “frivolous” prize but rather to give your customers (and community) something that is more meaningful. eg
1. Value bundles – ie Meal deals, price caps, etc
2. Value adds – Bonus (useful / valuable) widget
3. Support for charity – This is a classic win-win-win. Your customer feels good about purchasing from you, your brand affinity is increased and charities get a leg up at a time when donations are down.
Leverage Every Touch Point
Your company communicates with its customers (and potential customers) in many different ways but are you maximising your returns on these. Bill inserts, customer service contacts, etc. For more on this see my 4 September, 2008 post http://edwardbaral.blogspot.com/2008_09_01_archive.html
2009 is not a time for the faint-hearted. Be brave, think differently and make sure your brand is ready for the inevitable upturn – their called “cycles” for a reason!
Wednesday, January 7, 2009
Would You Want to Be Friends With Your Brand?
Ask someone what a brand is and most people will say that it’s a logo or a name. Dictionary.com defines a brand as “kind, grade, or make, as indicated by a stamp, trademark, or the like: the best brand of coffee”.
Such a definition is akin to suggesting that a person is simply their name, however, a brand, like a person, is more complex.
Just as a person demonstrates outward signs of who they are such as hair colour and clothing so to does a brand have outward expressions such as logo and advertising.
But ask the people who know you well to describe you and their description will generally go beyond looks to describe your personality and the history and experiences that they have with you will colour their view.
And whilst you may have different personas at work and at home the essence of who you are doesn’t change. Similarly, whilst a brand may express itself differently to different audiences the brand essence must remain consistent in all spheres or risk appearing schizophrenic.
Every experience that your customers have with your company / product is a brand experience. You might have the coolest logo and the funniest ad but how will a customer feel about your brand when they are cut off by a harried (rude?) customer service representative after sitting on hold for 30 minutes?
Brand management in many respects is like image management. It is not simply about packaging and advertising but taking responsibility for every experience that a customer (or potential customer) has with your brand. Sure, some aspects of this relationship are not generally under a marketer’s direct control but your customer doesn’t care about “channel management issues” and the like. You can either take responsibility for optimising the experience or you can put your head in the sand.
Just as a strong friendship will endure mistakes and tensions (have you ever left a friend waiting somewhere because you forgot that you were meeting?) so too a strong brand relationship will endure occasional “slip-ups”. In order to endure, however, you must invest in your relationships with your customers so that they know you respect them and are dependable.
In short, brands are as complex as people. Every interaction that a customer (or potential customer) has with your brand will impact on their perception of it.
Is your brand someone that your target audience would want to be friends with?
Such a definition is akin to suggesting that a person is simply their name, however, a brand, like a person, is more complex.
Just as a person demonstrates outward signs of who they are such as hair colour and clothing so to does a brand have outward expressions such as logo and advertising.
But ask the people who know you well to describe you and their description will generally go beyond looks to describe your personality and the history and experiences that they have with you will colour their view.
And whilst you may have different personas at work and at home the essence of who you are doesn’t change. Similarly, whilst a brand may express itself differently to different audiences the brand essence must remain consistent in all spheres or risk appearing schizophrenic.
Every experience that your customers have with your company / product is a brand experience. You might have the coolest logo and the funniest ad but how will a customer feel about your brand when they are cut off by a harried (rude?) customer service representative after sitting on hold for 30 minutes?
Brand management in many respects is like image management. It is not simply about packaging and advertising but taking responsibility for every experience that a customer (or potential customer) has with your brand. Sure, some aspects of this relationship are not generally under a marketer’s direct control but your customer doesn’t care about “channel management issues” and the like. You can either take responsibility for optimising the experience or you can put your head in the sand.
Just as a strong friendship will endure mistakes and tensions (have you ever left a friend waiting somewhere because you forgot that you were meeting?) so too a strong brand relationship will endure occasional “slip-ups”. In order to endure, however, you must invest in your relationships with your customers so that they know you respect them and are dependable.
In short, brands are as complex as people. Every interaction that a customer (or potential customer) has with your brand will impact on their perception of it.
Is your brand someone that your target audience would want to be friends with?
Subscribe to:
Posts (Atom)
Posts
