The company I like in the food business is Costco. Their no bones approach to 14% margin is right on. They seem to find great quality products and they get their margin every day of the week. Recently, I met with an account that wants 40 points and the quality, as a rule, is one step above salvage. You can’t price a food product at a price that will sell and have someone make 40 points and have offer quality.

Unfortunately I ran into a couple of recent situations where we a chased new business opportunity to the point where we lowered the price to one where an extra charge (freight stop charge, fuel surcharge, over-redemption) caused the margin to go into the red. Note to self: there is always another charge.

Work hard, work smart and price your product right (not to high and definitely not too low). A well thought out pricing strategy that you stick with will go a long way.

While working at an agency for 10 years, I saw what could be construed as a lot of creativity. There were good-looking images that did not relate to the target, there were websites that were pretty but took forever to load and there was pithy copy that did not ask for a call to action.

All creativity is not created equal. Some works but most does not. To be creative, I construe, is to deliver results. Creativity is not just getting out an idea that sounds good. It needs to deliver.

I look forward to more dialogue.

Check this great quote out—

“Merely to let your imagination run riot, to dream unrelated dreams, to indulge in graphic acrobatics and verbal gymnastics is not being creative. The creative person has harnessed his imagination. He has disciplined it so that every thought, every idea, every line he draws, every light and shadow in every photograph he takes, makes more vivid, more believable, more persuasive the original theme or product advantage he has decided he must convey.”
…Bill Bernbach

Don’t waste creativity. Embrace it. Let it flow but analyze it to ensure it delivers the same compelling message that your target audience needs to hear.

Today, the pattern continues. It’s almost become a way of life. With more people gone from companies, less people are doing more of the work. They are bogged down, can’t get things going, don’t have enough time to follow up, and being less productive. Instead of buckling down, they are feeding their distraction by jumping to the web to bring some clarity.

The reality is: a lot of their money is gone, the world is in crisis mode and their own lives are influx. “Are we going to be the next one to laid off? Am I going to need to do the work of four people next week? You said there are no bonuses this year and, is the pay cut I took the last one? You really can’t blame them for being distracted so how do you get them out of the funk. Here is a home grown recipe for businesses:
• Restate company policies and enforce them – especially on web use
• Update them on complete pay package – holidays, vacation, sick leave (make them understand that your paying them for a productive day)
• Share how company is doing
• Give each member in the team an allowance to create an office lunch party (get them to talk about how to improve workflow)
• Lead by example (show them your working hard)
• Walk around and give out praise when you see someone doing something extra well – especially when they go above and beyond

There will be a group of people that will appreciate these actions. Identify them and praise them. Where you see a bad apple, get rid of them. You can’t afford it and there are people out there that really want a job. Hey, the government will take care of them.

I have been conducting research for a client on the environmental ways to better manage an organization’s printing and imaging workflow and it has proven fruitful. A direct result of this research ended up being a “Green” policy that any business can implement and in doing so; limit their impact on the environment and save money at the same time.

Green Print Policy:

- We’re concerned about the environment and want to minimize our carbon footprint throughout our organization as it relates to printing and imaging. That being said, here is our Green Print Policy:

- We’re committed to be smart, “Energy Smart”, about all the printers we purchase.

- We‘re committed to limit the number of printers per employee and turn them off on weekends, holidays and evenings to reduce unintentional electrical consumption.

- We’re committed to using trusted recycling companies to recycle all obsolete hardware and, where possible, donate usable equipment to needy organizations like schools and clinics.

- We’re committed to using printer settings like grayscale and duplexing to reduce print cartridge usage and recycle all used print cartridges to keep them out of landfills.

- We’re committed to purchasing recycled paper where it makes sense and or purchase paper from FSC (Forest Stewardship Council) vendors.

- We’re committed to recycling used paper, reading not printing e-mails where practical and using electronic document management practices to reduce paper consumption.

First, PR is different than advertising and the two are often confused. Articles, mentions and quotes from press releases are often given for free but that does not mean that they are free. A lot of strategy, creative and copy writing go into receiving free PR. These costs can rival ad production but done right, deliver an outstanding value.
Here are a couple of tips:
• PR requires content that is interesting not only to the target audience but to the gatekeeper.
• Tell the truth, spin it but don’t exaggerate—it could come back to bite you.
• Remember, you can control what is exactly said – it is up to the vehicle. You can control advertising. So if has to be an exact representation of your message, use an ad.
• PR should be a part of every business’s marketing mix – it’s an integral part of any plan and needs all the attention and funding that advertising receives.

Inspiration: Jonah Bloom

With my interest and experience in the loyalty marketing business, I often find good information in the Colloquy newsletter that I subscribe to. Just today, I found an article written by John Bartold, Fire Insurance—How to survive an economy in flames, that had an excellent quote on marketing and the research to back it up. Everyone reading my blog should know these statistics and apply them to their business.

“Extensive research supports the conclusion that advertising, marketing and customer interaction during economic downturn can power organizations into the recovery. If done properly and balanced with overall corporate goals, marketing pays healthy dividends through increases in market share both during and following a recession.”

Research…
-McGraw-Hill Research’s Laboratory of Advertising Performance analyzed the performance of some 600 industrial companies during the 1981-1982 recession, finding that by 1985 (3 years later), B2B firms that maintained or increased marketing expenditures increased sales by 256 percent over those that did not.

-Management Review survey of AMA member firms found that most firms that raised marketing spend and staffing during the 1990-1991 recession were twice as likely to gain market share.

-Bain & Company’s—Fortune follows the brave— study of more than 2,500 companies over an eight-year period found that in the 2001 recession, some 24 percent more firms moved from the bottom to the top of the pack in terms of profit margin and sales growth, compared with the subsequent period of economic growth.

-Recessions and Depressions: Understanding Business Cycles, Todd A. Knoop notes that output changes tend to be much more dramatic in a recession than an expansion. Given such factors, capital investments like new plants or equipment may not be as beneficial as stimulating consumption. Smart organizations will shift capital investments for increasing production to investing in additional advertising, marketing and customer interaction to drive consumption.

This is powerful information that should support the premise that it does not make sense to be an ostrich and stick your head in the sand during a recession. Businesses should be proud of the products and services and get the word out.

Spend a week in Barbados and you’ll think you’re in heaven—big blue skies, even bigger puffy clouds, greeting you each day. The other thing that stands out (remember your on vacation) is the local beer “Banks”. You can miss it, it’s everywhere. Just ask “May I have a beer?” and this brown bottle with a red label shows up. It’s cold and cheep, as low as $1.50 US—compare that to the Bahamas. The beer tastes good, more refreshing than anything else, and in its 10oz size, it takes a couple to get you going.

As a marketer, the other thing that stands out about Banks is their brand marketing. In Barbados, there are over 1500 rum and beer stores/shacks. These shacks are independent and consist mostly of a shady spot to sit and drink—whatever’s your fancy. While at first it’s hard to actually figure out what they these shacks are, you start to get a feel when you see a Heineken one, a Mount Gay Rum on and of course a Banks one.

The bright red shack is a Banks shack and they are doing it best on the island. They are clean, bright colored, and inviting. As compared to some of the other shacks, you assume they have good electricity and that their beer is cold. They key—it’s all about the brand. The Banks red, the Banks logo, the Banks typeface are all controlled—used the same, consistent way—a “tight” brand approach! When you see their posters, ads, and even the sign on their factory, you realize they really know their target customers. They use images relating to sports (cricket, soccer, golf), they show young happy people having a good time and they use visual imagery all over the island.

So let’s see, they use tight brand guidelines, operate clean stores, charge a reasonable price for good product and understand how to connect to their target customers. As a marketer, if I could get my client’s to follow this type of integrated and focused plan, I wouldn’t need a lot of customers to be able to retire and spend more time in Barbados.

Marketing in Difficult Times
The premise is if you market during the tough times you will:
• Avoid falling behind your competitors
• Gain market share from those that do
• Position yourself better for when thing improve
The key is to get more out of marketing investments and to measure and account for marketing decisions.

1. Focus on what you can control
You can’t control the economy or most other external market factors but you can control how you invest the marketing budget you have. Invest it smart on programs and avenue that are proven to work.

2. Re-state your goals
Determine which of your current goals are reasonable and attainable, then reprioritize them and market against.

3. Get more targeted
Place your marketing investments and increase your visibility in the specific, targeted media vehicles where you know your customers and prospects will be exposed to your message.

4. Measure, measure, measure
Spend marketing dollars only where you can measure them. This means focusing on product-based marketing to drive revenue versus the more aloof, feel-good brand building.

5. Use an integrated marketing approach
Integrated marketing means spreading out the vehicles you use. This will allows you to achieve better reach, targeting, measurement and results. Try e-mail announcements, banner ads, direct mail and other communication devices such as targeted e-newsletters to get your message out cost effectively.

6. Maintain frequency and consistency in your messaging
Keep your message in front of your customers and prospects; don’t disappear for stretches at a time.

7. Push and pull your marketing efforts
Make sure you’re pushing your message via direct mail, advertisements, e-mail marketing, and e-newsletter sponsorships and pulling via online directories, Web sites and search engines to pull customers in real-time when prospects are searching for information.

8. Focus on quality leads over quantity
When it comes to generating leads, look to quality versus quantity. Measuring website traffic but track quality conversions—count click through but focus on gaining customers. Dive down to understand what is really working.

9. Seek assistance from media partners
Count on your marketing partners to provide marketing solutions help your company achieve your realistic goals. Check to make sure you have the right team helping you out.

PS: I would source the article but I can’t find the link any more.

There was this one run where I was really on my skis. I turned on top of the base layer; slid smooth over the top 2”, never going to deep…just floating. Turning was the key—pole plant then turn (smile), pole plant the turn (smile). Knowing when to do it, execution, and then doing again and again.

Looking back, Saturday reminded me of searching out leads. As you know, you have to keep doing it, but more importantly, you have to do it right. First, the conditions have to be right. You have to know when the conditions are right, when to turn and how to handle the smiles.

So what does this all mean?

Conditions: Make sure your prepared. Make sure you in a good mood, not just calling because it’s Tuesday afternoon. Some days are just right others are days that are better off managing your existing business or getting prepared.

Turn: What’s a good turn. It’s being confident and using a specific benefit to lead with. Today it might be “Can I tell you how we have taking the costs out of our pricing model?” “Can I share with you how we helped a client produce uplift in their business?” Make sure your leading with a benefit that is relevant to the lead you are trying to convert.

Smile: Isn’t that what you do best? If you’re in sales, hopefully your confident in your abilities not to just land a sale but to actually deliver a benefit. If that’s the case, then you should be able to smile on every call.

Good selling,

R. J. Gadd