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A review of how printers and graphic arts service providers must change their marketing strategies to prosper in the post-recession environment.
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Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 1
Marketing in a Recession and Recovery Dec 2009
Marketing in a Recession and Recovery
Positioning Your Company for Ongoing Success
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 2
Marketing in a Recession and Recovery Dec 2009
Why Survival Strategies Don’t Work• #1 killer of businesses because
they are about:– Conserving resources– Slowing your movement– Hoping no one notices that you are
dieing• And they seldom do more than buy a little
time!
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 3
Marketing in a Recession and Recovery Dec 2009
The Worst Thing You Can Do Is “Go Dark” to the Market
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 4
Marketing in a Recession and Recovery Dec 2009
Evidence Supports Visibility
• Yankelovich/HarrisExecs agree that seeing a company in a down market makes them feel more positive about the company and keeps them top-of-mind when making purchase decisions.
• McGraw-Research Laboratory of Advertising PerformanceStudy of 600 BtoB marketers found that those who maintained or increased advertising during a recession averaged sales growth of 275% over the preceding five years.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 5
Marketing in a Recession and Recovery Dec 2009
Evidence (Cont.)
• American Business PressStudy revealed sales and profits could be maintained and increased in recession years and in the years following by those who maintain an aggressive posture while others become non-participants.
• Harvard Business ReviewReport of 200 companies found that sales increases came from companies that advertised the most during the recessionary year.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 6
Marketing in a Recession and Recovery Dec 2009
Where Should You Focus Resources?
Innovation Provides the Only Real Escape Hatch
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 7
Marketing in a Recession and Recovery Dec 2009
Lots of Innovation Occurs During Weak Economies
• 1919—The Assembly Line (Ford)• 1920—Market Segmentation (GM)• 1931—Brand Management (P&G)• 1943—Skunk Works (Lockheed)• 1950s—Lean Manufacturing (Taiicho Ohno,Toyota)• 1967—Scenario Planning (Shell)• 1973—360-Degree Reviews (DuPont)• 1987—Six Sigma (Motorola, GE)• 1989—Outsourcing (IBM)• 1990—Reengineering (Michael Hammer, Ford)• 2000s—Open Innovation (P&G)
Source: Business Week, March 23, 2009
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 8
Marketing in a Recession and Recovery Dec 2009
Are Any Printers Innovating?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 9
Marketing in a Recession and Recovery Dec 2009
Let’s Look at Two Outside the Box • Tukaiz (
www.tukaiz.com)• SendOut Cards (
www.sendoutcards.com)
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 10
Marketing in a Recession and Recovery Dec 2009
Question:
Knowing What You Know Today, What Would You Have Done Differently?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 11
Marketing in a Recession and Recovery Dec 2009
More Importantly, What Would Make Tomorrow Different?• Strategies and tactics• Services• Relationship building• Join ventures and partnerships
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 12
Marketing in a Recession and Recovery Dec 2009
The Non-recovery Recovery
• U.S. jobless rate peaks in 2nd half of 2010
• GDP rises 2.5% 2010• GDP rises 2.8% 2011• Slow recovery worsens
deficit• Second stimulus?
Source: Organization for Economic Development, Nov. 2009
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 13
Marketing in a Recession and Recovery Dec 2009
What’s the Print Economic Outlook?
• Employment levels and credit markets will improve in 2010
• Anticipate signs of modest recovery in early 2010
• Slow U.S. GDP growth of 2.2% over next decade
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 14
Marketing in a Recession and Recovery Dec 2009
Outlook (cont.)
• Print does best in mature part of recoveries– Don’t expect
immediate help • Recovery will only lift
those companies that structurally change their businesses
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 15
Marketing in a Recession and Recovery Dec 2009
Outlook (Cont.)• Agency Bradford & Maloney sees best print
opportunities for:– Gift and discount cards– Cents-off coupons– FSIs– Direct mail– Digitally printed books– Large-format products– Variable-data digitally printed products– Newspapers printed by commercial shops
Source: NPES 2009 Industry Summit
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 16
Marketing in a Recession and Recovery Dec 2009
Some Categories Will Never Be the Same• 383 magazines closed in the first nine
months of 2009– 259 new launches in same period– 64 ceased print versions but continued online– Closings outpaced launches– Marketers keep shifting dollars to the
Internet and especially to search engines
Source: MediaFinder.com
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 17
Marketing in a Recession and Recovery Dec 2009
So How Will Your Team Cope With the “New Normal?”
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 18
Marketing in a Recession and Recovery Dec 2009
Study Shows Consumers Have Internalized Recession Experience
• Assumptions underpinning segmentation no longer valid
• Marketing strategies that don’t recognize the diversity of recession experiences won’t work in post recession
• It’s the “new normal,” not just a cyclical phenomenon
• Deep-rooted change in favor of a more restrained approach
Source: “Marketing to the Post-Recession Consumers,” Decitica
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 19
Marketing in a Recession and Recovery Dec 2009
Four Distinct Emerging Consumer Segments• Steadfast Frugalists
– Self-restraint, prudence– 20% of all consumers– 60% women
• Involuntary Penny-Pinchers– More stressed, worried– Heavy in 30s & 40s– 29% of consumers– 60% women– 38% exceeded income
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 20
Marketing in a Recession and Recovery Dec 2009
Emerging Segments (cont.)
• Pragmatic Spenders– Most able to resurrect
past spending– Heavy in 60s – 29% of consumers– 60% men
• Apathetic Materialists– Least changed – 22% of consumers– Younger, singles,
slightly more women
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 21
Marketing in a Recession and Recovery Dec 2009
New Strategies • Find a way into the
decision-making process– Bring something of value– Become a thought leader– Get people who know
marketing• Embrace all things digital
– Not just print• Understand how multi-
channel works – Become a player
• Develop a consultative, not transactional sales team
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 22
Marketing in a Recession and Recovery Dec 2009
Warning!
Growth Is Not a Strategy. Dominating a Category Is.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 23
Marketing in a Recession and Recovery Dec 2009
How Do You Know If Your Sales Team Is Transactional?
• Order takers won’t cut it in the new the new marketing environment
• You have to decide who can take you to a higher level and who can’t
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 24
Marketing in a Recession and Recovery Dec 2009
Transactional Consultative
• Comfortable with printing process
• Know production managers
• Know clients' print requirements
• Read printing industry publications
• Comfortable with business strategy
• Know executive managers
• Know clients' business objectives
• Read clients' industry publications
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 25
Marketing in a Recession and Recovery Dec 2009
Transactional Consultative
• Sells company's products/services
• Sells him/herself• Takes
responsibility for quality product
• Sells solutions
• Sells the team• Takes
responsibility for program benefits
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 26
Marketing in a Recession and Recovery Dec 2009
Improve Your Customer Aim
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 27
Marketing in a Recession and Recovery Dec 2009
Existing Customers Are Your Best Source of Incremental Growth• They already know and trust you• PLUS, new customer acquisition can be 6-
10 time more expensive than retaining customers– So why do so many companies take such a
rudimentary, reactive approach to retaining and growing existing clients?
– What’s your plan for existing clients?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 28
Marketing in a Recession and Recovery Dec 2009
But You Need to Do Your Customer Homework
• Aiming at the wrong customers is an expensive waste of time
• You need to make fact-based decisions
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 29
Marketing in a Recession and Recovery Dec 2009
Start By Dividing Your Customers Into Three Tiers• Bottom feeders
– Those who primarily buy on price– Tend to shop services with little or no loyalty
• Partnership tendencies– Tend to favor you– Interested in multiple services
• Full partnership– Complex needs– Interested in solutions – Understand total costs as opposed to price per m– Want to work with fewer, but better vendors
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 30
Marketing in a Recession and Recovery Dec 2009
Next, Aim at Customer Groups• Identify customers by market segments.• Look for growth markets.• Learn MORE about your customer's business.• Address the specialized needs of specific market
segments.• Bring ideas that matter.
– How to virtually eliminate print obsolescence through a demand-based system.
– How to increase retail store traffic by 10% though better data intelligence.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 31
Marketing in a Recession and Recovery Dec 2009
How Well Do You Know Your Best Customers’:
• Competitors? • Market share?• Industry growth trends?• Nature of products—luxury, etc. • Hot & struggling products?• Distribution channels?• Factors affecting markets?• Stock performance?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 32
Marketing in a Recession and Recovery Dec 2009
Aim High
• More people high-level people are involved in major print-related decisions.
• Don’t get stuck at the production procurement level.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 33
Marketing in a Recession and Recovery Dec 2009
Aim Beyond Print
• Print may be the least of your customer's marketing issues.
• May be grappling with:– Obsolescence costs.– Speed-to-market issues.– Content management.– Marketing ROI
measurement.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 34
Marketing in a Recession and Recovery Dec 2009
Offer New Services• Database intelligence.
– Segmentation, product propensity, etc.• Automated campaign management.• Digitally-based communications delivery.
– Print.– Email.– pURLs. – QR Codes– Dynamic mapping. – Text messaging.– Blogs.
.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 35
Marketing in a Recession and Recovery Dec 2009
Most Important
• Understand the new world of multichannel communications.
• Be able to demonstrate how print plays well within that world.
“We don’t have mass communications. We now have a mass of communications.”
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 36
Marketing in a Recession and Recovery Dec 2009
Do You Need to Change Your Company’s Description?• We keep “elevating”
the language– UPS is now a logistics
company– Banks are now financial
services providers– Should you become a
Marketing Service Providers?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 37
Marketing in a Recession and Recovery Dec 2009
Contrarian View
• Confuses customers• Takes a lot of
marketing time, attention and budget
• Can’t you just BE IT?
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 38
Marketing in a Recession and Recovery Dec 2009
Joint Ventures Strategic Partnerships
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 39
Marketing in a Recession and Recovery Dec 2009
Cardinal Rules
• Make sure one (preferably both) of you have customer demand for the product or service offering.
• Joint ventures of faltering firms usually don’t work
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 40
Marketing in a Recession and Recovery Dec 2009
Best Deals Are With Customers• U. of Chicago is largest
scholarly press.• Put 14,000 low-volume
books in digital BiblioVault.
• Serves 65 publishers. • Partnered with Edwards
Brothers to install and manage digital equipment in the Chicago Digital Distribution Center (CDDC).
• Founded with Mellon Foundation grant.
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 41
Marketing in a Recession and Recovery Dec 2009
Three Essential Networking and Relationship Tools• Corporate Blogs
– Weblog with latest entry at the top– Create your own and/or participate in others– Check http://blogsearch.google.com or
http://www.technorati.com/) for blogs– Free hosting— http://wordpress.com
• Twitter– Free social networking micro-blogging site– 140 character posts– Run keyword searches at search.twitter.com– Set an objective
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 42
Marketing in a Recession and Recovery Dec 2009
Relationship Tools (Cont.)
• LinkedIn– Business social network– Locate past and present
colleagues and make new ones– Participate in groups and
discussions– Give and make recommendations– Establish thought leadership
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 43
Marketing in a Recession and Recovery Dec 2009
How It All Works Together
• Distribute Print Strategist e-newsletter to 462 print company decision makers
• Roll articles over to blog http://printstrategist.wordpress.com
• Post latest articles at Twitter and LinkedIn• Pick up new followers, make new contacts
and initiate dialogues
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 44
Marketing in a Recession and Recovery Dec 2009
My 18-Month Stats• 250 Twitter followers
– 4 lists• LinkedIn
– 104 connections– 4 recommendations
• Print Strategist E-News– 462 subscribers– 24.35% open rate– 52.64% clickthroughs– .058% unsubscribe
• Print Strategist Blog– 2,314 page views
Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595
04/08/23 | Slide 45
Marketing in a Recession and Recovery Dec 2009
Thank You.
Hope that you are successful in positioning your company for
ongoing success.Larry Bauer—Print Strategist
Bauer Associates630-406-8595