Marketing on the Business Side

Recessions

Recessions are cyclical, occurring every 4–6

years. There have been 22 recessions since

1929. Utah is feeling this one so strongly

because we’ve been insulated from recent

recessions; this is the first recession in a

decade to really impact Utah.

The biggest names/brands in consumer

services have all maintained or expanded

advertising /marketing during recessions.

Oregon State...conducted a survey of the five recessionary periods since 1971, sampling 3,000 companies and discovered that those who “are able to increase advertising during recessions are likely to have stronger future earnings.”

Harvard Business School...found that 75% of companies cut back during a recession, but 25% are still in the game and therefore have more opportunity to increase market share. Most of the companies who choose not to advertise during a recession lose momentum and can’t regain their market share later.

Wharton School of Business...found that it costs 4–5 times more to REGAIN market share and momentum once lost.

A. cAse in Point

Kellogg’s vs. Post cereals (1930s)

Who won the battle?

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

A. cAse in Point

Kellogg’s vs. Post (1930s Depression)

Instead of cutting advertising and marketing

spend as arch-rival Post did, Kellogg’s

doubled their budget. The strategy paid off.

Kellogg’s business increased 30% during

some of the darkest times this country has

faced. And Post? To this day, Kellogg’s is still

the leading company in the industry.

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

B. cAse in Point

Reebok vs. Nike (1990–91 Recession)

Who won the battle?

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

B. cAse in Point

Reebok vs. nike (1990–91 Recession)

Nike tripled its advertising while Reebok cut

back. After that recession, Nike’s profits

rose by (9) times while Reebok never has

regained its previous top spot in shoe sales.

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

c. cAse in Point

Which was the only automotive maker to

increase sales in January 2009?

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

c. cAse in Point

In Jan. 2009, Hyundai introduced its new

campaign for car buyers, “Lose your

job, bring the car back — no questions

asked.” Sales went up 14% while all other

manufacturers’ sales went down 32%.

Proves the point that during recessions,

consumers want extra value, improved

services and familiar brands and purchases

that minimize risk.

The New Yorker MagazineHanging Tough, by James Surowiecki

April 20, 2009

Recessions

“When times are good, you should advertise.

When times are bad, you must.”

— Entrepreneur Magazine

Recessions

“When times are good, you should advertise.

When times are bad, you must.”

— Entrepreneur Magazine

We don’t recommend incurring debt to

advertise or market. When funds are simply

not available, rather than spending money,

spend the next available resource — sweat.

Beat the streets — network, attend events,

rub shoulders. Get out...be seen and heard.

PuBlic RelAtions

The ongoing process of providing and

shaping both the raw information and

perception that the media and public have

about an individual, organization, product

and/or service.

Consider the following “Press Releases 101”

Tips and Advice:

1. Be newswoRtHy

A press release is NOT an advertisement.

A new service, product, employee,

location, company anniversary, etc. may be

newsworthy. Your annual sale is not. Think

of it from the perspective of the media’s

audience — why will they want to know this?

How will this help them?

2. Get to tHe Point

Write a news release in an inverted “V.”

It needs a compelling headline that really

summarizes what the story is about. Write

from the most important to the least. Don’t

use flowery, pretentious language. Focus

on one or two features; don’t include the

“kitchen sink.” Most releases should be

400–500 words at most.

3. Be PRoFessionAl

Check and double-check grammar, spelling,

etc. It will be hard for people to take you

seriously if you’re not professional in your

writing, demeanor, etc.

4. looK FoR A HooK

Why should they care? Why would

the general public want to know this

information? How is it relevant to them? Why

would the media want to run the release?

What does it do for them? Media outlets

are bombarded with news releases and

information. You need a reason for your

story to rise to the top of the pile.

5. contAct inFo

An e-mail address is not good enough.

Provide a name, phone number, etc.

where someone can immediately contact

you if needed. Provide proper links or

website information.

6. MAKe it eAsy

The more information you put at their finger

tips, the better: statistics, research, etc.

Offer interviews, pictures, whatever makes

sense. Realize they may be on a deadline.

Be committed to providing them with WHAT

they need in a TIMELY manner; you may not

get a second chance.

7. send (e-MAil oR FAx)

Send your press release to the general news

e-mail address or the specific reporter who

handles that particular genre — or fax it.

Pick up the phone and call in an idea or

event. Most news agencies prefer not to

receive press releases in the mail.

8. Be ReAlistic

Developing media relationships takes

consistent time and energy. Don’t expect the

media to pick up everything you send out;

thank them when they do. Understand that

if even your press release is picked up, you

will not be able to control the overall content

of the piece. If you need/want to control

everything — place an advertisement.

9. MAxiMiZe Results

Regularly place press releases on your

company website. Post printed articles,

broadcast, etc. on your website, e-mails,

RSS feeds, etc. This provides legitimacy

for your company/products and can boost

traffic to your website as well.

Know youR Business

The business of marketing really starts with

knowing your own business. If you need

help, start with a business consultant or

advisor. But in the end, you have to know

your own turf. Otherwise, you’re always at

the mercy of uncertainty.

Know youR BRAnd

Brand is the essence of a business /

customer relationship — your promise, your

performance, and their loyalty. Meaning, the

promise you make to your customer, your

ability to perform on that promise and the

loyalty your customer gives back to you.

Brands are active, not passive. An

effective brand creates motion, attracting

some while perhaps repelling others.

What’s important is that you attract your

target, then engage and hold them through

promise and performance.

wHAt to Avoid

PORRIDGE:

the absence of love and Hate

Anything warm, comfortable and bland.

COMMODITY:

Plain, white paper

We need it, we use it — and we don’t care

who makes it or where we buy it. We just

want it for the “best” price.

The Commodity Trap Taken from “Nothing To Fear But Fear Itself”

by Curt Bailey, President of Sundberg-Ferar

BRAnd vs. MARKetinG

Your brand is the ‘horse,’ your marketing

the ‘cart.’ Avoid placing the cart before

the horse. It’s amazing how much money

businesses seem willing to spend on

marketing and advertising, but how hesitant

we can be to spend dollars on brand

development and documentation.

BRAnd vs. MARKetinG

A documented brand sets a qualifying

standard for integrated marketing and

communications. Integration in marketing

strategies creates synergy and is proven to

enhance brand performance, while potentially

reducing costs and improving results.

teRMs oF enGAGeMent

never put a marketing partner between

you and your business. We’re experts at

communication, you should be the expert

in your business.

teRMs oF enGAGeMent

Never put a marketing partner between

you and your business. We’re experts at

communication, you should be the expert in

your business.

this can and should apply to any

consultative or partnering relationships.

teRMs oF enGAGeMent

FORTHGEAR recommendations:

• don’t let yourself off the hook. Provide clear direction and set clear expectations.

teRMs oF enGAGeMent

FORTHGEAR recommendations:

• don’t let yourself off the hook. Provide clear direction and set clear expectations.

• do your due diligence. Develop and maintain your own foundational understanding to direct and measure progress.

teRMs oF enGAGeMent

FORTHGEAR recommendations:

• don’t let yourself off the hook. Provide clear direction and set clear expectations.

• do your due diligence. Develop and maintain your own foundational understanding to direct and measure progress.

• don’t shelve your earned instinct or

the inherent knowledge that you have

about your business.

conclusion

Effective marketing relationships are

partnerships based on trust, which are best

achieved when the “terms of engagement”

are clearly established. But before too much

is done with regards to any marketing or

advertising, take the steps necessary to

“know your business” and “know your brand.”