Okay, so maybe I watch too many crime shows, but the new Air Canada television campaign is rather spooky to me. It's supposed to be the re-launch of the brand but, to me, half of it looks like a murder mystery. The smearing of red paint with fingertips is too much like writing with blood. (maybe I should seek help?)
I seriously believe an airline wouldn't want to be associated with spilled blood, so what were they thinking? The company's in trouble financially and they spend money on a high production ad that doesn't really sell any of their services but certainly puts a negative picture in my mind.
It is however an excellent example of what can happen to your marketing message if it isn't clear, concise and tested. Branding is important, don't get me wrong, but when your budget is tight, delivering messages that are high level and don't actually have a specific call-to-action are not a good use of your money (but it certainly puts cash into ad agencies' wallets). Of course, maybe Air Canada doesn't have anything positive to say about seat sales or services (that's certainly the sound of things in the media over the last while) so this weird bloody ad is all they have in their pocket.
There aren't a lot of ads, television, print or otherwise, that people take the time to discuss to discover what their impressions actually are. So you're stuck with their first impression - good or bad.
And it isn't just the words you use. In the case of Air Canada, there's nothing wrong with the words of the commercial. In this case, it's the visuals. So make sure your images are worthy of the message - both supporting it and enhancing it. For some people something as simple as brussel sprouts can be such a negative image that your brand is scarred forever.
Depending on the audience psychographics, you could find customers turning away simply because the imagery doesn't match their temperament. And the only way to know for sure is through testing or being completely in touch with who your customer actually is deep in their heart.
The more you know about your customer, the more you will be able to reach them with engaging and motivating messages. It's worth the research to not become an airline that markets writing in blood.
Showing posts with label marketing budgets. Show all posts
Showing posts with label marketing budgets. Show all posts
Tuesday, April 7, 2009
Monday, March 9, 2009
The economics of marketing - shrink it at your peril
There's loads of research saying if you cut your marketing budget during tough economic times you won't survive with the strength you could if you just towed the line. And yet, there's more businesses cutting their marketing budgets than there are businesses getting smarter about how they spend their money.
I've had the pleasure of dashing about presenting Marketing Bootcamp for Small Business - Your recession survival toolkit to a number of organizations over the last month. The session discusses the importance of not cutting your marketing budget and shares important information about how to get the most bang for your buck. I've met some pretty terrific small business people who are suffering cutbacks and, in most cases, they've felt they have no choice but to cut their marketing budget.
The key thing to remember: If you cut your marketing budget, you are effectively lowering the amount you talk to your customer. At the very least, you are lessening the quality of the conversation. And if you aren't talking to them, someone else is.
This is why companies with their marketing budget intact, even during recessionary times, grow larger and stronger while other businesses close or panic. It's all about continuing the conversation.
Small businesses waste an extraordinary amount of money in their marketing. And they don't understand that marketing is actually a revenue stream - not an expense line (accountants will argue this, but it's simply true that marketing is the top of your sales funnel - without it there's no support for your sales force and no mechanism for relationship development with prospective customers). For many small businesses, marketing is simply a necessary evil that is the first thing to go when money is short.
In my book, Muddled, meager and messy - Marketing performance repair manual for small business there's information about how to make better use of the money you have. In cases where you get smarter, you can actually pare back your spend because you're getting more results.
The media has done a bang-up job of putting recession fear into every business person's heart. Take that fear and turn it into smarter business. Every marketing tactic should be able to be defined by the relationship it builds with your customers. If there's no relationship definition, you should reconsider the tactic.
Bottom line: If you have to cut your marketing budget you'd better get smarter about using the money you have. Heck, even if you don't have to cut your marketing budget, you should get smarter because customers are going to become more discriminating in their purchases.
I've had the pleasure of dashing about presenting Marketing Bootcamp for Small Business - Your recession survival toolkit to a number of organizations over the last month. The session discusses the importance of not cutting your marketing budget and shares important information about how to get the most bang for your buck. I've met some pretty terrific small business people who are suffering cutbacks and, in most cases, they've felt they have no choice but to cut their marketing budget.
The key thing to remember: If you cut your marketing budget, you are effectively lowering the amount you talk to your customer. At the very least, you are lessening the quality of the conversation. And if you aren't talking to them, someone else is.
This is why companies with their marketing budget intact, even during recessionary times, grow larger and stronger while other businesses close or panic. It's all about continuing the conversation.
Small businesses waste an extraordinary amount of money in their marketing. And they don't understand that marketing is actually a revenue stream - not an expense line (accountants will argue this, but it's simply true that marketing is the top of your sales funnel - without it there's no support for your sales force and no mechanism for relationship development with prospective customers). For many small businesses, marketing is simply a necessary evil that is the first thing to go when money is short.
In my book, Muddled, meager and messy - Marketing performance repair manual for small business there's information about how to make better use of the money you have. In cases where you get smarter, you can actually pare back your spend because you're getting more results.
The media has done a bang-up job of putting recession fear into every business person's heart. Take that fear and turn it into smarter business. Every marketing tactic should be able to be defined by the relationship it builds with your customers. If there's no relationship definition, you should reconsider the tactic.
Bottom line: If you have to cut your marketing budget you'd better get smarter about using the money you have. Heck, even if you don't have to cut your marketing budget, you should get smarter because customers are going to become more discriminating in their purchases.
Sunday, October 26, 2008
Recession means get smarter
The economic news throughout the world has recently become a big threat to small business. Lending has tightened, customers are holding their funds close to their chest. For many businesses, the next order of business is to cut costs. AIC, a mutual fund company cut their staff by 20% this week. In the article it is mentioned that this isn't as big a deal as it appears because most of the staff cuts were to IT and marketing.
And there's the rub. So often, the first that gets cut in a recession is the marketing team and the marketing budget. And without either of these, how do you get your message out?
Recessionary times are about being smarter with your money. Quite frankly, in my book being smart all the time makes the most sense but so many business people and even in-house marketing teams take the money for granted in the good times.
So how do you use your money wisely?
First, get to really know your audience. Mass marketing isn't economical if you sell a niche product or your audience represents a specific market. Find ways to fine-tune your delivery mechanisms. Stop talking to the people who will never be your customer. To use an example from last week's blog, if you are selling something that costs $30,000 stop talking to neighbourhoods with high unemployment or low incomes. You may have to get out of your office and actually sell your message in person.
Second, stop buying message delivery systems just because they seem inexpensive. If you spend $125 to reach no one who responds it is actually more expensive than spending $250 to reach those who will. Of course, you can only spend what you can afford, but if you resist the urge to spend that $125 that seems so inexpensive you can add that to next month's budget and actually reach people who care.
Third, and while I've come to hate this expression, think outside of the box. Be creative in how you reach your audience and how you spend your money. For some US readers, this could mean thinking about getting a Canadian marketing team to craft your messages. The difference between the Canadian and US dollar right now means you get more for your money. But it doesn't mean to resort to your nephew to do your creative development just because he happens to have a design program on his computer.
The companies that stay in the customers' minds during a recession are the ones who survive and grow more quickly after the recession ends. Which it will. It always does.
And there's the rub. So often, the first that gets cut in a recession is the marketing team and the marketing budget. And without either of these, how do you get your message out?
Recessionary times are about being smarter with your money. Quite frankly, in my book being smart all the time makes the most sense but so many business people and even in-house marketing teams take the money for granted in the good times.
So how do you use your money wisely?
First, get to really know your audience. Mass marketing isn't economical if you sell a niche product or your audience represents a specific market. Find ways to fine-tune your delivery mechanisms. Stop talking to the people who will never be your customer. To use an example from last week's blog, if you are selling something that costs $30,000 stop talking to neighbourhoods with high unemployment or low incomes. You may have to get out of your office and actually sell your message in person.
Second, stop buying message delivery systems just because they seem inexpensive. If you spend $125 to reach no one who responds it is actually more expensive than spending $250 to reach those who will. Of course, you can only spend what you can afford, but if you resist the urge to spend that $125 that seems so inexpensive you can add that to next month's budget and actually reach people who care.
Third, and while I've come to hate this expression, think outside of the box. Be creative in how you reach your audience and how you spend your money. For some US readers, this could mean thinking about getting a Canadian marketing team to craft your messages. The difference between the Canadian and US dollar right now means you get more for your money. But it doesn't mean to resort to your nephew to do your creative development just because he happens to have a design program on his computer.
The companies that stay in the customers' minds during a recession are the ones who survive and grow more quickly after the recession ends. Which it will. It always does.
Friday, June 27, 2008
Do your homework
Stephane Dion and the Liberal Party have offered up such a terrific example of what can happen when you don't do your homework, that I couldn't resist. Their widely publicized plan, The Green Shift, may well get its time in court as it flies in the face of trademark, copyright and intellectual property laws.
Green Shift, a company in Toronto, has been around for approximately 10 years. So even if they never trademarked the company name, there can't be any question that it belongs to them. Perhaps the most irritating part of the story is that the Liberals were aware of this company and went ahead anyway. There is something grossly arrogant about thinking you won't get caught.
For small business, it is key to do your homework about all aspects of marketing your business. If you are incorporating, you must do a name search but when you are a sole proprietor, you can get away without one. But to save face and potential court and rebranding costs, you better make sure no one else is using the name.
Imagine the embarassment when your new business customers are suddenly faced with a new business name; and even more so when the explanation is that you didn't do your homework. What does this do to your business' credibility?
Keep in mind that your customers do business with you because they have developed trust in you. If you have so little respect for your business that you don't do your homework, why should they have respect for it?
And doing your homework isn't limited to just your company name or slogan. It pertains to how you market yourself. Learn some of the basics of marketing law. And then, for goodness sake, abide by them. Just because you see big companies flying in the face of good marketing laws, doesn't mean it is the right answer for small business. They can afford (apparently) the fines and loss of face. Small business can't.
Learn what your competitors are doing and saying. Then stay away from those things. Not only do you eliminate the risk of a lawsuit regarding intellectual property or copyright, but you also have to spend some time thinking about how you are unique. This helps you stand out from your competition because you aren't using their words and actions.
Don't take the lazy way out. Have the same passion for your homework as you do for making sales.
Green Shift, a company in Toronto, has been around for approximately 10 years. So even if they never trademarked the company name, there can't be any question that it belongs to them. Perhaps the most irritating part of the story is that the Liberals were aware of this company and went ahead anyway. There is something grossly arrogant about thinking you won't get caught.
For small business, it is key to do your homework about all aspects of marketing your business. If you are incorporating, you must do a name search but when you are a sole proprietor, you can get away without one. But to save face and potential court and rebranding costs, you better make sure no one else is using the name.
Imagine the embarassment when your new business customers are suddenly faced with a new business name; and even more so when the explanation is that you didn't do your homework. What does this do to your business' credibility?
Keep in mind that your customers do business with you because they have developed trust in you. If you have so little respect for your business that you don't do your homework, why should they have respect for it?
And doing your homework isn't limited to just your company name or slogan. It pertains to how you market yourself. Learn some of the basics of marketing law. And then, for goodness sake, abide by them. Just because you see big companies flying in the face of good marketing laws, doesn't mean it is the right answer for small business. They can afford (apparently) the fines and loss of face. Small business can't.
Learn what your competitors are doing and saying. Then stay away from those things. Not only do you eliminate the risk of a lawsuit regarding intellectual property or copyright, but you also have to spend some time thinking about how you are unique. This helps you stand out from your competition because you aren't using their words and actions.
Don't take the lazy way out. Have the same passion for your homework as you do for making sales.
Monday, May 5, 2008
Two takes on "you get what you pay for"
My work with small and rural business has made me realize there really are two concepts covered by the adage "you get what you pay for".
The first one is obvious. If you buy a cheap pair of shoes, they last three months; if you buy a good quality but more expensive pair, they last you years. The same goes with your marketing communications. A designer who charges you $10 per hour is probably one of three things: desperate, untrained or unemployable. Most designers have pride and talent that comes with a fair market value. This is also true of your marketing consultants. If your consultant has solid experience and a background with results, then it is going come with a price tag.
The second interpretation is a little different, but is a piece of information to which start-up businesses need to pay particular attention, and small business might still require.
In this case, "you get what you pay for" speaks to the fact that once you have paid for your design, you own it and your designer or advertising firm should make it readily available to you. In fact, you really should get copies of all your designs - logos, ads, print materials - to keep for your own records.
I have recently heard of too many situations where designers are refusing to release logo designs and print ads. And in some cases, promotional item houses are refusing to release the digitized logos used to sew garments. I assume they do this to try to keep the business to themselves. If they give you the logo, you can get anyone to do the work for you.
In both cases, once the item has been paid for, you own it and are entitled to have it in your possession to do with what you wish. Don't ever let a designer, ad firm or promo producer tell you otherwise.
Canadian Intellectual Property law stipulates that once the work is paid for, it belongs to the person/firm who paid for it. For there to be an exception to this rule, there must be a contract, signed by both parties that clearly states the property remains in the designer's ownership.
I think it is fair to say designers/companies who will not release your logo, ad or other designs are not ethical marketing personnel. If this has happened to you, I hope you no longer do work with them. If it hasn't happened to you yet, the minute it does change your supplier to someone who knows and abides by the law.
There may be a small fee from your designer to supply you with digital files of your work, and I mean a small fee. This would cover the time to back-up the files, sort them, burn them to disk, etc. Hopefully, your designer has included this in his estimate of costs and automatically supplies you with your files without any form of debate.
So if you are tired of hearing people say "you get what you pay for" as you go along marketing your business with cheap paper, amateur design or free existing templates - and then not seeing the results you desire - perhaps you weren't meant to be a long-lasting success. But even for you folks, the second interpretation is valuable.
The first one is obvious. If you buy a cheap pair of shoes, they last three months; if you buy a good quality but more expensive pair, they last you years. The same goes with your marketing communications. A designer who charges you $10 per hour is probably one of three things: desperate, untrained or unemployable. Most designers have pride and talent that comes with a fair market value. This is also true of your marketing consultants. If your consultant has solid experience and a background with results, then it is going come with a price tag.
The second interpretation is a little different, but is a piece of information to which start-up businesses need to pay particular attention, and small business might still require.
In this case, "you get what you pay for" speaks to the fact that once you have paid for your design, you own it and your designer or advertising firm should make it readily available to you. In fact, you really should get copies of all your designs - logos, ads, print materials - to keep for your own records.
I have recently heard of too many situations where designers are refusing to release logo designs and print ads. And in some cases, promotional item houses are refusing to release the digitized logos used to sew garments. I assume they do this to try to keep the business to themselves. If they give you the logo, you can get anyone to do the work for you.
In both cases, once the item has been paid for, you own it and are entitled to have it in your possession to do with what you wish. Don't ever let a designer, ad firm or promo producer tell you otherwise.
Canadian Intellectual Property law stipulates that once the work is paid for, it belongs to the person/firm who paid for it. For there to be an exception to this rule, there must be a contract, signed by both parties that clearly states the property remains in the designer's ownership.
I think it is fair to say designers/companies who will not release your logo, ad or other designs are not ethical marketing personnel. If this has happened to you, I hope you no longer do work with them. If it hasn't happened to you yet, the minute it does change your supplier to someone who knows and abides by the law.
There may be a small fee from your designer to supply you with digital files of your work, and I mean a small fee. This would cover the time to back-up the files, sort them, burn them to disk, etc. Hopefully, your designer has included this in his estimate of costs and automatically supplies you with your files without any form of debate.
So if you are tired of hearing people say "you get what you pay for" as you go along marketing your business with cheap paper, amateur design or free existing templates - and then not seeing the results you desire - perhaps you weren't meant to be a long-lasting success. But even for you folks, the second interpretation is valuable.
Tuesday, March 11, 2008
And all he sees is the almighty dollar
I did a survey recently and discovered that 98 percent of rural and small business owners were handling their own marketing. I also discovered the majority have an intense dislike of advertising sales guys. You know the ones - they get your phone number and call you all the time, they stop by unannounced and muddy the marketing waters by insisting their advertising is the best way to go for your business. They are slick and shiny. And they have left a very bad taste in a lot of people's mouths in my area.
And out of this environment of intense dislike, one of these sales guys opened his own business selling advertising and promotional items to local small businesses. Changed his tune, but didn't change his schtick. He is still slick and still shiny and believes success is based on being the cheapest at what he does.
What he has also managed to do is take away the uniqueness of many businesses. He achieves "cheapest" by offering a standard paper so he can take everyone's work and pile it up into one print run. (It's called 'ganging' the work. e.g. business cards from 25 different businesses all laid up on one sheet, same paper, same ink, same quality - or lack thereof)
Of course, businesses don't have to work with him and can keep their uniqueness. But when you see 1,000 business cards offered in full colour for $40, who would say no?
For goodness sake, say no. If your company is promoted on the same paper as everyone else, how will you stand out?
And while he shared with me the wonders of his successful business, our advertising-guy-turned-business-owner laughed over mistakes he'd made in people's information. Are you willing to accept mistakes that hold up your marketing efforts or, heaven forbid, get out into your customers' hands?
Attention to quality costs money. People are always cheapest for a reason. They rush the job through so it takes less hours which can translate into mistakes. They don't use quality supplies which reflects poorly on your brand. And often times, they just don't care about your business.
Buy the right solution for your business. Keep your uniqueness alive. And don't scrimp on your marketing. Your customers will see it and measure your business by it.
And out of this environment of intense dislike, one of these sales guys opened his own business selling advertising and promotional items to local small businesses. Changed his tune, but didn't change his schtick. He is still slick and still shiny and believes success is based on being the cheapest at what he does.
What he has also managed to do is take away the uniqueness of many businesses. He achieves "cheapest" by offering a standard paper so he can take everyone's work and pile it up into one print run. (It's called 'ganging' the work. e.g. business cards from 25 different businesses all laid up on one sheet, same paper, same ink, same quality - or lack thereof)
Of course, businesses don't have to work with him and can keep their uniqueness. But when you see 1,000 business cards offered in full colour for $40, who would say no?
For goodness sake, say no. If your company is promoted on the same paper as everyone else, how will you stand out?
And while he shared with me the wonders of his successful business, our advertising-guy-turned-business-owner laughed over mistakes he'd made in people's information. Are you willing to accept mistakes that hold up your marketing efforts or, heaven forbid, get out into your customers' hands?
Attention to quality costs money. People are always cheapest for a reason. They rush the job through so it takes less hours which can translate into mistakes. They don't use quality supplies which reflects poorly on your brand. And often times, they just don't care about your business.
Buy the right solution for your business. Keep your uniqueness alive. And don't scrimp on your marketing. Your customers will see it and measure your business by it.
Sunday, March 2, 2008
And the first to go is the marketing budget
When sales go down, as many industries will see in the next while because of the state of the American economy, the accountants start making their lists of cutbacks and layoffs. This is true in big business as well as rural and small business. And one of the first things to go, in the majority of cases, is the marketing budget.
Accountants see marketing as a cost centre. There is no direct line from marketing to increased revenue in an accountant's mind. It is the sales department that brings in the revenue. So cutting back the marketing budget will save money, right?
Wrong!
If you cut back on your marketing spend, how will your customers learn all the great things about your business? If anything, you should plan to increase your marketing budget to support your sales during times of lean coffers.
I've lost count of the number of times I've had this discussion with accountants and actuaries. Okay, for their sakes, I'll change what I just said (plan to increase your marketing budget) to leave the marketing budget alone - leave it at the same level it's at before your business starts to shrink.
This is where having the right marketing team in place is so very important. Your messages have to be fine-tuned and extremely targeted during the lean times.
I've just had the pleasure of working with a bunch of brand new business owners as they build their business plans. Needless to say when you're first starting your business, times are lean as well.
It was painful for me. They were being told by the class facilitators that a reasonable marketing budget is between two to five per cent of their annual sales projections. Of course, they were also coached that they should decide what they needed to do to market their business and plan an appropriate budget. Not one of them went above the five per cent mark, and most went with two per cent. Needless to say, these percentages were created by accountants.
Brand new businesses should be planning a bigger marketing spend to get the word out and promote strong sales. With a tight, skinflint marketing budget, their business will grow slowly and may not survive the first year.
Economies of course make sense when times are lean, but it's important to look at the big picture. If you cut back your marketing budget, what will support your sales team and deliver your message to your customers?
Accountants see marketing as a cost centre. There is no direct line from marketing to increased revenue in an accountant's mind. It is the sales department that brings in the revenue. So cutting back the marketing budget will save money, right?
Wrong!
If you cut back on your marketing spend, how will your customers learn all the great things about your business? If anything, you should plan to increase your marketing budget to support your sales during times of lean coffers.
I've lost count of the number of times I've had this discussion with accountants and actuaries. Okay, for their sakes, I'll change what I just said (plan to increase your marketing budget) to leave the marketing budget alone - leave it at the same level it's at before your business starts to shrink.
This is where having the right marketing team in place is so very important. Your messages have to be fine-tuned and extremely targeted during the lean times.
I've just had the pleasure of working with a bunch of brand new business owners as they build their business plans. Needless to say when you're first starting your business, times are lean as well.
It was painful for me. They were being told by the class facilitators that a reasonable marketing budget is between two to five per cent of their annual sales projections. Of course, they were also coached that they should decide what they needed to do to market their business and plan an appropriate budget. Not one of them went above the five per cent mark, and most went with two per cent. Needless to say, these percentages were created by accountants.
Brand new businesses should be planning a bigger marketing spend to get the word out and promote strong sales. With a tight, skinflint marketing budget, their business will grow slowly and may not survive the first year.
Economies of course make sense when times are lean, but it's important to look at the big picture. If you cut back your marketing budget, what will support your sales team and deliver your message to your customers?
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