Creating Value

Purpose and Mission

Sales department purpose = Maximize Revenue

Sales department mission = get and keep customers– Must have a meaningful value proposition

Value Proposition

To create value, you must have a value proposition that is customer focused and solutions based.

Example value proposition:– We are committed to partnering with our

advertisers (and their agencies) by providing innovative solutions for connecting them to our audience in a way that delivers advertiser-defined results and jointly builds both of our brands.

Objectives

Sales department objectives1 To get results for advertisers2 To develop new business3 To retain and increase current business

– Pre-sell– Up-sell

4 To increase customer loyalty- “Under-promise” and “over-deliver”

Strategies

Sales strategies To sell solutions to advertising and marketing problems

Intense customer focus Not your bottom-line focus.

To reinforce the value of advertising and advertising in your medium

To create value for your product/service/medium To become the preferred supplier and consultant

To establish, maintain, and improve relationships at all levels of the client and agency (keep agency informed)– No prestige rub-off to the agent

To provide the best research, information, and advice To be customers’ marketing consultant

Agencies = CPPs/CPMs/CPCs– Typically experienced specialists want only

price and service– Know the person – a people expert

Advertisers = Results/ROI– Typically inexperienced generalists want to

know how to buy and use your medium.– Advertisiers want ROI– Know marketing – an advertising and

marketing expert

Marketing is more complex.– Takes more time– Requires more knowledge of the customer’s

business Look at Advertising/Sales Ratios (Ad Age Web site

data center) Look at 100 Leading National Advertisers (Ad Age

Web site data center) Discovery Questions (Charles Warner’s Web site

“Papers by Charles Warner”

Advertising Vs. Promotion

Sell the value of advertising versus promotion.

What is the difference?– Advertising tells consumers why to buy – has

long-lasting effects (branding).– Promotion tells consumers when to buy (now)

and often at a lower price – has short-term effects .

Increasing advertising by 1% is more profitable than lowering price by 1% to increase volume.

Creating Value Features, advantages, and benefits

– Sell advantages Company advantages Product/Service/Medium advantages Service Advantages

Position benefits according to personal needs.– Use a Benefits Matrix (www.charleswarner.us,

in Papers by CW section).

Creating Value: Selling Solutions Know your customers’ marketing goals (or

help define them).– Increase market share– Increase traffic– Increase sales– Increase profit margins– Increase share of mind– Increase stock price– Increase share of voice

Creating Value: Selling Solutions Know your customers’ primary marketing

strategy (or help define it).1 Differentiation2 Focus (niche)3 Low-Cost Producer

The Objectives of Advertising To Inform

– Specific information To Persuade

– Creating the perception of advantages.– Unique Selling Proposition (USP) KISS

To Remind– Continual reminders of benefits

Advertising Objectives Informing

– Create awareness– Communicate information

Persuading– Try the product– Use more of the product

Advertising Objectives Reminding

– Adoption of a product (habit)– Reinforcement– No loyalty

Brands must stay competitive every day, continuously.

Must maximize touch points.

Plan Media To Meet Advertising Objectives

Thin Market– Only about 1-4% of consumers are in the

market for a specific product at any one time. Thus, critical to reach them when they are most

receptive. To assure reaching consumers when they are

receptive, must have continuity, not flighting.

Frequency is not the key, recency is (reach planning).– Best media for recency: mobile, radio, outdoor.

Create Value

EV = Q + R + S P

To increase the Economic Value to the customer, raise the numerator (Quality, Results [ROI], and Service), don’t lower the denominator (Price).

Strategy = Create Value

Value, like reality, is a perception– The price paid is a combination of real and

perceived value. Buyer perception is reinforced by value

signals:– Brand reputation– Cumulative advertising and promotion

(differentiation)

Strategy = Create Value– Sales promotion material and media kits– Case studies of advertiser success– Advertiser/client list– Telephone courtesy– Ethical practices– Promotions/contests– Special packages/promotions– Price (high = quality)– Management visibility

– Spend time in client’s business– Client brainstorming– Creative ideas (campaigns, positioning,

brand extensions, commercial production)– Sales presentations (www.charleswarner.us,

“Checklist for Solutions-Based Presentations” in the Papers by CW section).

– Salespeople

What Buyers Want

Ideas (Added Value) Communication (Targeted, Helpful) Respect For Their Time Run As Ordered Responsiveness (Speed, Accuracy)

Ad Age 2007 Sales Survey Report

Advertising Age Reported on an Advertiser Perceptions Survey of 2000 Media Decision Makers:– “In addition to brand knowledge, media buyers

and planners are also looking for good communication skills, professionalism, and understanding of marketer needs and priorities.”

– “…least important characteristics in a sales rep identified by marketers were sales presence and entertainment.”