Posts Tagged Re-Branding

One pitfall of writing a marketing column is always trying to come up with the next great marketing idea, then attempting to communicate it to your readers. The reason I say it is pitfall is because there really are no great new marketing ideas. But there sure are plenty of great old marketing ideas and there are a number of businesses that take these old ideas and execute them exceptionally. Business speakers talk about adhering to the basics or rallying behind a “Back-to-Basics” theme. I once played sports for a coach who had learned under John Wooden at UCLA. Wooden’s philosophy was always practicing the basics. He would never scout other teams or put in special plays or defenses for a certain opponent. His opponents needed to practice to play against his team, not the other way around. In fact, like Wooden’s teams, we were never allowed to watch other teams play for fear we would pick up bad habits or concentrate on something that was meaningless.

Therefore, this month, we are going to discuss, the basics of advertising. What media should you be using to promote your business and what should the message be? Do you reach as many prospects and customers as possible or do you reach fewer with a higher frequency? What is a responsible budget?

To answer these questions, I am going to work backwards and discuss budget first. Some businesses do not believe advertising is necessary, but I am going to make the assumption that anyone reading a column on marketing believes in advertising. In many industries, a responsible budget is between two and three percent of projected sales. In other words, if you believe you can do $5 millions in total sales next year, you should budget between $100,000 and $150,000 for advertising. Which end of the budget spectrum is correct for your business depends on several factors. How aggressive are your growth plans? If you are currently at $4 millions and want to get to $5 millions, you should be closer to the three percent number. If you are currently at $4.8 millions and want to get to $5 millions nest year, you should be closer to the two percent figure. You should be closer to three percent if your business is in the first five year of existence or if you are in a large market. If your business is mature or you are in a small market with lower advertising costs, you can get away with a smaller percentage of gross annual sales.

The next basic is around the message and I will keep it brief since volumes have been written about “Big Ideas” or “Unique Selling Propositions.” The key here is to be consistent with your message and keep it simple. Also, tie your message into how to make money. If, for example, you are a copier dealer, you probably do not want to advertise copiers. Everyone sells copiers and most have the same bells and whistles. Dealers make money on the service, so you should advertise how your service or service programs differentiate you. Labels are good for communicating differentiation. Plus, they provide the salespeople something tangible to sell.

Your slogan is another way of communicating with prospects and customers. Do not make it too cute unless cute or clever captures the flavor of your company. In most business-to-business interactions, cute is inappropriate. Your slogan, as with your overall message, needs to reflect the personality of the company. If your environment is starched white shirts and businesslike, humor or corn will not work. If you have a raucous, fun environment, do not make the advertising too serious. In either case, make sure it is polished. Polish equates to the professionalism of an organization.

Reach versus frequency is one of the oldest arguments in marketing. Anyone who has read my articles for any length of time or heard me speak is familiar with my three buildings analogy. If you have three buildings, do you want your salespeople visiting every office in all three buildings once or visiting each office in one building three times? In the office technology industry, the correct answer is the latter, since not too many sales are made based on one call. (If I had a team of Girl Scouts selling cookies, I would answer differently since nobody can refuse the greatest sales force ever established.)

Selecting the correct media can be a challenge because everything sounds so good, especially when there is a gifted salesperson attached to it. And the truth is just about any medium will work if given a chance. Once again, the flip side is also true. Nothing will work if you do not give enough time. Following is a brief review of four advertising options and how to make them work effectively.

Television
There are two versions of commercial television these days, with a third potentially on the way. Broadcast television, which includes affiliates (CBS, NBC, ABC), is primarily a reach medium due to cost. The most favorable programming for my readers is new-related and this is the bread and butter for the local stations. Cost in the Top 50 markets in the United States can go over $1,000 per 30-second spot. You are depending on a huge impact from a few spots and that is very difficult. Cable television rates are a lot more affordable and you can generally cherry pick the good cable systems in your marketing area. The downside is there are no ratings, so you buy programming on hunches. Of course, some of those hunches can be pretty good. If you want men 35 to 54 year of age, buy ESPN, CNN or the Golf Channel. If you want women 25 to 49 years of age, buy Lifetime, USA or the Discovery Channel. The potential for television is around point of purchase. Imagine television sets everywhere you go and not just in Blockbusters and 7-Elevens. Vendors are encouraged to purchase time and create demand while the potential customer is right there in the store. Wal-mart is already involved in this medium in an effort to generate more revenue from its suppliers.

Radio
Radio has always a favorite of mine because you can communicate a very emotional, value-added story and generate frequency very affordably. Although with the government allowing multiple ownership in markets, advertisers are paying the price with large corporations like Clear Channel and Infinity dictating prices. Soon, they will be dictating programming and news content and we all know where that could lead. (I apologize if I digressed into a political agenda).

Billboards
Billboards, like television, can create a larger-than-life image. My belief is it is a great secondary medium. If you are already doing other media correctly, billboards can add to your message. But is is tough to communicate an emotional, value added message with a board. but, like I said earlier, any medium will work if given enough time. If you stay with billboards years after years and have a consistent message, you will be successful.

Print
Business journals, trade magazines and newspapers are targeted at an male demographic. The problem is it is tough to generate frequency because business journals are weekly, trade magazines are monthly and newspapers make so much money from car dealers and department stores that it is very costly to have a consistent presence.

This is a very brief overview. In my next article, I will continue this “Looks at the Basics.” I will discuss direct mail, telemarketing, Internet advertising, Yellow Pages and other non-traditional advertising. In the meantime, make sure that your budget is in line with the parameters, have a message that is consistent and separates you from the pack, and do not get too impatient with how you are spending the dollars. As a former president once said, “Stay the course.”

by Ian Crockett, President of Orange Label Art + Advertising