marketing in a down economy

Marketing in a Down EconomyIABC-KY Meeting, Louisville, KY

July 12, 2012

Today’s Agenda

• A historical perspective• Strong brand = consumer confidence• What can I do and can I afford it?• Using digital in a down economy

“You don’t ever want a crisis to go to waste; it’s an

opportunity to do important things that you would

otherwise avoid.”

- Rahm EmmanuelFormer White House Chief of Staff

Should You Advertise in a Down Market?

• 1981-1982 Recession– Companies that maintained or increased their ad

expenditures averaged significantly higher sales growth during that time and grew 256% for two years after

• 1989-1991 Recession– Companies that increased ad expenditures experienced

growth from 15-70%– Companies that cut back on advertising during that time

had a drop in sales from 26-64%*

*McGraw-Hill’s Research of 600 companies between 1981-82 and 1989-91

How Does a Recession Impact Consumer Behavior?

• Decrease in overall spending– 80-90% willing to trade off or trade down– May not return to previous spending habits

• Change in lifestyle and how they spend their time– Staying home– Focus on home and family

• Focus on products and services that provide a “rational benefit” – Running shoes? Yes– Jimmy Choo’s? No

• Consumers, manufacturers & retailers in a “no frills” mood– Emphasize value (quality divided by price) and how those savings will

benefit them and their family

• Increased spending only likely to be in:– Online– Mobile – In-home entertainment sectors

• Consumers want reassurances about their spending in bad economic times– Anxious about keeping job, paying the mortgage, college

tuition, etc.– I’m making the right decision with the money I have– Consistency and authenticity are critical

Recession Spending

Success Stories

– Every Day Low Prices launched in 2000-2001– Positioned as more than just low prices, but making

contributions to consumers lives

– Consumers staying at home more– Brand promise = “you can have a superior cooking

experience and you can share this with your friends in a superior way”

5 REASONS TO STAY THE COURSE

Reasons to Stay the Course

1. Today’s consumer has to be motivated to action. Replace consumer anxiety with empowerment.

2. Go after or protect market share. It’s less expensive than trying to rebuild it later and studies show it leads to long-term profitability.

3. Increase share of voice and top-of-mind awareness. Less aggressive advertisers leave the door open to consumer brand switching.

Reasons to Stay the Course

4. Great media values are out there. Advertising is still a viable and important communications vehicle. Purchase “opportunistically” but don’t sacrifice frequency.

5. The economy will improve. Staying engaged with your consumers during the recession enables you to optimize performance now and to accelerate into the recovery.

STRATEGIES FOR THRIVING IN A DOWN ECONOMY

Strategies for Thriving in a Down Economy

• Focus on the Future– Since 1854 there have been 28 recessions – Average recession has lasted 10 months– Position your product or service as bringing value to the

consumer (don’t focus on the “bad times”)

In other words, the economy WILL recover


• A strategic marketing plan is vital – Don't waste money communicating the wrong “message”

in the wrong place to the “wrong” audience– Good time to review plans for continued relevance in

current market

• “Stick to your knitting”– This is not the time to stray from your known brand– But, do evaluate your brand identity and how relevant it is

to your consumers in this market– Consumer research essential – Reinforce the positives, change the negatives


• Maintain your advertising budget– If possible, increase it (just don’t tell your CFO) and let the

competition cut theirs – Increased ad spending = increased share of voice

• Re-evaluate your media/dayparts/insertions mix– Changing a TV daypart can save you as much as 19% while only

reducing your reach by about 9%– Increase time between flights/insertions– Eliminate weeks of media

• Don’t sacrifice strategy and message– If you can’t run a full schedule, don’t water down your message


• Maintain continuity to sustain awareness– Consumers depend on brands they trust – Advertising works cumulatively, so we have to remind

people frequently about our brand or they'll forget us– A strong brand is the best defense against a difficult

economy

• PR and non-paid media– Op-eds and pitched stories are more valuable– Newspapers are not ‘dead’, but their readership and how

consumers access the product is shifting

We’re All in This Together

• Recommit to customer excellence– Internalize your brand: your brand reputation depends on it– If you don’t already have a service excellence program,

start one!

• Remember your employees– They are also feeling the economic pinch– Work with HR to help them get through the hard times– This isn’t 100% altruistic – your employees are your best

brand ambassadors

Think Digital in a Down Economy

Allow digital communications and marketing to do the heavy lifting. If you

aren’t already using digital for marketing, start now!

USING DIGITAL MARKETING TO YOUR ADVANTAGE

DIGITAL SPENDING TRENDS

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The Budget Rollercoaster

21http://www.6smarketing.com/infographic-digital-marketing-budget-trends-for-2012/

41% plan to reduce print

spending64% plan to increase

budget for SEO

70% plan to increase

investment in social media

(including blogs and product

reviews on their site)

Budgets May Not Be Growing But They Are Shifting

22

http://www.6smarketing.com/infographic-digital-marketing-budget-trends-for-2012/

28% are moving some budget to digital channels

Consumers Find You on Search Engines


20% of Google searches by month are for local businesses

46% of daily searches are for info on products or services

SEO & SEM are important and worth the investment!

Mobile Matters More Every Year


In 2013:

• There will be over 60 million smartphone users

• U.S. companies will spend more than 2 million on mobile marketing (36% increase over 2012)

• 80% of major U.S. brands will be using mobile marketing

Low/Moderate Investments = High Leads

http://www.6smarketing.com/infographic-digital-marketing-budget-trends-for-2012/

Social media is making big gains as a lead generator

Search investments (SEO and SEM (PPC)) create strong business leads

% of digital budgets

Digital Priorities Pyramid

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Site Refinement, Analytics & Search Marketing (SEO & PPC)

Online Display Advertising & Affiliate Partners

Email Marketing

Social Media

Mobile & VideoMkting

In 2013, U.S. companies will spend 21% or more of their marketing budgets on digital

Source: Forrester’s Interactive Models Research: Forecast for U.S. Interactive Marketing Spend

60%

30%

5%

3%

2%

Tackling the Top 4 Digital Concerns of Marketers

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The Top 4 Digital Concerns During a Down Economy

•I have a modest marketing budget or my marketing budget is maxed.

Budget

•I have already allocated 90% of my budget. I am afraid to move dollars from traditional marketing to digital.

Monetary Allocation

•I don’t know where to start with digital. There are so many options.

Media & Medium

•I don’t have additional resources to take on new marketing efforts.Resources

•Use free online marketing tools when possible. Your investment is equal to the time it takes to set them up.

Budget

•Reallocate 15 -25% to digital. Pull funds from low return investments and move them to 1 – 3 digital efforts.

Monetary Allocation

•Do your homework. Search what’s working in businesses like yours. Not every digital option will be a good fit . Seek guidance from digital marketing experts.

Media & Medium

•Devote approximately10-15 minutes of your time each business day to digital. It doesn’t have to be daily, but expect to spend one hour+ per week on digital. Hire an intern and pay him/her to help you run your digital program.

Resources

Write It Down & Stick to the Plan

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Serious Times Call for a Serious Strategy

Justification

Integration

Campaign/Execution

Budget

Education

Resources

Measurement

What Are Your Goals? What Are Your Digital Options?

Acquire Convert Retain & GrowMeasure & Optimize

Search Engine Marketing Usability & Accessibility E-mail Marketing Web Analytics

E-Mail Marketing Customer Decision Support Loyalty Programs Site Performance Monitoring

Affiliate Marketing3rd Party

Certification/AccreditationPersonalization Competitor Benchmarking

Aggregators Shopping Copywriting, Content Referrals Online Panels

Comparison Interactive Functionality & Presentation Customer Service Online Surveys

Advertising Partnerships Promotions & Merchandising Choice & Convenience Usability

Co-Registration Personalization & Targeting Dynamic Pricing

Viral Marketing E-mail Marketing Community

PPC Payment Options

Content Distribution/RSS Onsite Search

Online PR

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www.boldendeavours.com/191/

Digital Checklists for a Down Economy

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Website: Your Marketing Front Line

Checklist: Have I had my website independently audited

in the last 12 months Is my website professional and modern? Have I compared my site to my competitors’

sites? Can consumers easily reach me via phone,

email, inquiry form, and physical address Am I immediately responsive to all inquires? Am I building my prospective and existing

customer databases and collecting valuable information about them?

Am I talking about myself and my company on my site or am I talking about what I can do for my consumer?

Is it hard to navigate? Is there too much text?

Have I tested usability on my website? Is my website showing up in keyword

searches? Is everything working properly on my site Have I gotten rid of Flash elements? Do I know how my site looks on a variety of

mobile phones? Do I have strong customer testimonials Have I included location-based apps or links

to location-based apps for easy downloading for my consumers?

Is my site listed correctly on all of free business listing sites? You may be listed and do not know it.

Are the images helping or hurting my brand?

Emails and Eblasts: A Must

Checklist: Do I really know what I need to know to be effective

with my emails? Am I using a reliable and easy ESP (email service

provider, i.e. iContact, Constant Contact)? Is my email database clean Am I collecting consumer preferences? Am I following all SPAM and best practice email

guidelines? Am I correcting incorrect emails and reducing my

bounce rate? Am I faithfully removing anyone who does not want to

receive my emails from my mailing lists? Am I providing web page and text backups for all of

my emails? Do I have a strong CTA (call to action)? Have I given

them a reason to click? Is my email compelling? Have I included all of my contact information in a text

format?

Have I encouraged my email recipients to pass along the message or discount?

Have I included my social media resources? Am I rewarding good customers with coupons,

discounts or special offers? Does the imagery enhance the message or just make

it look pretty? Am I tracking my email campaigns? Do I know the best days, time of day and frequencies

to reach my audiences? Have I purchased a list? Do I have a mechanism to collect new emails

addresses and contact information to expand my business’ database?

Have I started collecting mobile phone numbers for future texting campaigns?

Have I built out an editorial schedule for my emails for the next 6 months?

Am I tracking my email campaigns and are my campaigns improving upon each refinement?

Social Media: You Need It But…

Checklist: Have I given serious thought to my primary social media channel? Do I know what my competitors are doing? Do I have a formal LinkedIn profile? (Particularly important for B to B) Have I had my social media presence audited for value? Have I claimed my brand on all major channels? Have I educated myself and my team on how to use social media for business? Is my presence representing my brand to it’s fullest potential Am I aware and using new marketing tools available to me? Do I really understand what businesses do well advertising in these mediums and what do not? Have I built a social media strategy around my brand, products, services, seasonal advantages, pass along

strategies, engaging my fan base, messaging voice and appropriate use of imagery? Have I received and acknowledged feedback from followers? Am I responsive? Am I tracking my social media placements, my competitors and my viral influence correctly? Are my fans engaged and participating in discussions? Is my page professional and well-designed Do I offer my fans special offers and discounts? Do I have compelling content? (Worth asking again… Do I REALLY have compelling content?) Is social media part of my public relations strategy?

% of Firms Using Social Media For Marketing Activities

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SEO & SEM: Can They Find You?Checklist: Do I know all of my critical keywords and key phrases? Has my site been audited for SEO effectiveness? Do I show up on page one of my keyword/key phrase search? Do I use a regional strategy for my SEM? (If relevant) Are strong sites linking to mine? Do I encourage social media followers to visit my site? Do I track SEO and SEM via analytics? Have I done my homework? Do my team and I understand the fundamentals of SEO? If my search engine ranking is low, am I engaging SEM with a reputable specialist? Is my search marketing company making recommendations to improve my ranking and

monitoring my SEM buys 24/7? Am I prepared to commit to a 12+ month engagement in SEM? Do I have a way to track leads from search engines and keyword searches? Is the abstract that surfaces based on a keyword/phrase search strong, clear and compelling? Have I made a compelling offer in my abstract? Am I taking search users to the correct pages on my site? Am I giving search users an easy but actionable and clickable result? Am I properly collecting

searcher information when they land on my site?

Mobile Marketing: Yes, If…

Checklist: Have I done my homework on the success rates of the online mobile marketing providers that I

plan to use? (Trumpia, etc.) Does my consumer have a smartphone texting profile? Do they message frequently Are my competitors doing well with mobile? Does my online mobile marketing provider have strong ROI case studies? Are participants

gaining revenue? Is my offer good enough to bring new consumers to my business? Is it as good or better than

competitors? Am I able to collect and reuse consumer email addresses and mobile numbers so that I can send

out offers directly? Have I prepared for business surges and planned accordingly? Do I have a follow up plan for participants who click through? Am I promoting my mobile campaign via my traditional and online marketing channels? Is this an

opportunity for QR codes Am I tracking my spend to revenue ratio from the promotion? Do I have the right message and contact information with my incentive or coupon so that

redemption is easy and trackable? Am I staying local and building in local relevance Have I reviewed my mobile display ads on a variety of smartphones?

Free Resources

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23 Free Online Marketing Tools That You Should Have

• www.goodkeywords.com/products/ • www.google.com/alerts • www.onlywire.com/ • www.picresize.com/ • www.smartftp.com/ • www.copyscape.com/ • www.google.com/analytics • www.gigasize.com/ • www.alexa.com/ • www.analyticscheckup.com/• www.cotweet.com • www.quora.com

• tools.seobook.com/keyword-tools/• www.seochat.com/ • Blogger.com/ • www.google.com/trends • marketing.grader.com/ • tweet.grader.com/ • ready.bluestatedigital.com/ • go.icontact.com/• www.scribit.com/• www.issuu.com• www.socialmention.com

http://www.goodkeywords.com/products/

http://www.google.com/alerts

http://www.onlywire.com/

http://www.picresize.com/

http://www.smartftp.com/

http://www.copyscape.com/

http://www.google.com/analytics

http://www.gigasize.com/

http://www.alexa.com/

http://www.analyticscheckup.com/

http://www.cotweet.com/

http://www.quora.com/

http://tools.seobook.com/keyword-tools/

http://www.seochat.com/

http://blogger.com/

http://www.google.com/trends

http://marketing.grader.com/

http://tweet.grader.com/

https://ready.bluestatedigital.com/

http://go.icontact.com/

http://www.scribit.com/

http://www.issuu.com/

http://www.socialmention.com/

Example: Marketing Channel EvaluationChannel Volume Cost/user Time to implement Mktg Effort Production Effort

Viral / Referral depends on CTA; size of accessible social networks / # users

low/zero Low for FB social networks;med/hi for normal sites

low low/med

Email depends on CTA, size of your house lists, email signups

low/med Low low/med low/med (med = create templates)

Blogs / Bloggers

Depends on # blogs in your segment, competitive scenario

low/med Low (if just you blogging); med (if you're setting up big CMS / evangelizing to other bloggers)

low/med low/zero(med = CMS, prof design)

SEO depends on your keywords Low/zero Medium(depends on your search geeks)

low/zero med/hi

SEM depends on your keywords Depends Low/med(depends on your marketing)

Low/med low/med (landing pages = med)

Contest small unless big prize $ (don’t, keep it under $5K)

low/med low/med(depends on contest, site, campaign)

Med low/zero(med = prof contest site)

Widget Depends on CTA; size of accessible sites, level of adoption + bloggers

low/med Low/med med med/hi (depends on complexity)

Domains depends on keywords, domain costs depends low low Low (redirects/co-brand?)

PR depends on your business & audience & news

Med/hi medium (develop story, build contacts) med low/zero

Biz Dev / Partner

depends on partner, size of customer base, conversion

Med-high med/hi (capture metrics, generate reports)

Med/hi med/hi (reports, co-branding)

Affiliate / Lead Gen

depends on economics Med/hi med/hi (need to build affiliate program, capture metrics, generated reports)

med/hi med/hi (depends on rqd tracking & reporting)

Direct / radio depends on geography Med/hi medium Med/hi low/zero

Telemktg depends on target demographics med-high med-high High low/zero if no system;Med/hi if integrated SFA

TV Potentially large (if you spend) High Med-high High Med/hi (production cost)

disclaimer: these estimates of vol, cost/user, time & effort are highly subjective & very dependent on your specific business Source: www.slideshare.com/designing-marketing-plans-1195162412251922-2

Example: Justification Matrix

THANK YOU!

Margaret Horlander

VP of Account Services

[email protected]

Elizabeth Scott

Digital Strategist

[email protected]

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mailto:[email protected]

mailto:[email protected]