Effective Advertising Seminars






Effective Advertising Seminars Newsletter
Issue 12, Volume 7
December 2007
In This Issue
 
 

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Welcome to the Effective   Advertising Seminars Newsletter!

2007 wasn't bad, everything considered. Most economic forecasters are cautiously optimistic for 2008.

We are rather proud of the more than 170* businesses that have purchased our Effective Advertising Program from our television partners. We are especially pleased with the results they are getting. Over 60% of this year's advertisers will renew their advertising commitment. Why? Because it works! Reach the market, reach it frequently, and do it on a consistent basis.

Effective Advertising Seminars

Internet Marketing
 

Effective Advertising Seminars

Internet marketing is beginning to emerge as one of the premier marketing tools available. Online advertising is expanding much quicker than print, radio or television. Search engine marketing (paid ads and optimization) grew over 65% last year to over $9.4 billion. Growing businesses find that Internet marketing has major advantages over print, television and radio advertising. Two of the most important benefits of online advertising are:

  • Internet Marketing is targeted to a highly specific audience - only those that are looking for the offered product or service at exactly the time they need it.
  • Internet Marketing is measurable by detailed analytics so that the advertiser will know an exact ROI.

Those companies that offer website design must now include search engine optimization, pay-per-click advertising, email marketing and "local search" placement. Today's advertiser needs to measure the impact of his advertising and accurately forecast his return on that investment.


Too Much Advertising?
 

There is a relationship between advertising volume and advertising effectiveness. The greater the volume, the less effective any individual advertisement is to be.

A number of magazine readership studies have shown, for example, that an advertisement in a thin publication is more likely to be noticed and read than the same advertisement in a thick issue of the same publication.

In the long run, the health of the advertising industry is related to effectiveness. As the increasing clutter reduces the effectiveness of advertising, clients are turning to other ways to promote their products and services. So today we have advertising on blimps, ATM's, gas pumps, eggs, commodes, even beach sand. And there's a developing market in a stadium naming rights and product placement in television, movies and videogames.

If I were running a radio station today, I'd worry more about XM Satellite Radio and Sirius that I would about my direct competitors. So far, the two satellite systems have signed up almost 14 million subscribers.

If I were running a television station today, I'd worry more about TiVo (and other digital video recorders) than I would about my direct competitors. At the end of 2005, according to Forrester Research, 12.2 percent of households had DVRs. That number is expected to skyrocket.

Are visuals helpful? Sure, but the objective of the visual should be to associate the brand with a word. Volvo drives an automobile into a wall in order to drive the word "safety" into the consumers mind.

Radio isn't exactly red-hot today, but it has held its own among major media. In 1978 (when we first went to work for the Radio Advertising Bureau) radio accounted for 6.7 percent of the total media expenditures. Today it's 6.9 percent, a gain of 3 percent. Newspapers, on the other hand, are down 42 percent. Magazines are down 20 percent.

Radio is a powerful medium with great selectivity at relatively low costs, but, over-commercialization threatens the very existence of the medium. Too much is too much.

One could make the point that radio has nothing to worry about. That advertising in general has not been increasing and in one sense this is true. For the last 60 years, US advertising spending has averaged about 2 percent of the gross domestic product. (In 2005. it was 2.18 percent, the smallest percentage since 1994.)

That misses the point. The last 60 years have witnessed an explosion in the average family's income. Yesterday's luxuries have become todays necessities. Today the average family has the money to spend on restaurant meals, multiple cars, jewelry, watches and other luxury items.

With an expanding income comes a declining percentage of a families income spent on food, housing and other essentials. Expenditures for food, for example,have been consistently falling. From 15.1 percent of the average families income in 1990 to about 13 percent today.

With rising incomes, the percentage of a country's gross domestic product spent on essentials should be falling. Nobody should be saying, what most families need in America is more to eat. Or more advertising to consume.

The biggest health problem in America today is obesity. The biggest advertising problem in America today is obesity too.

Thanks to Al Ries, president of Ries & Ries


Stake Your Claim!
 


In today's retail environment, every minute you spend, every penny you invest, must show a return on investment. Competitive growth and aggressive pricing can eat into your existing business silently and relentlessly if you aren't in a constant state of evolution, change and occasionally revolution of your brand and your retail experience.

Retail is like the new Wild West in many ways. New people move in and stake on your territory, and if you do not fight back, they'll grab it and own it.

So what do you do? Constantly assess your entire marketing model, making sure you're using every asset, every opportunity to your advantage.

Recently at a large annual marketing summit for manufacturers and retailers, we were regaled by the success stories of Target. Actually, they were quite humble and introspective about the way they go to market, but they know what they do well. And they were delivering a message to suppliers at this meeting.

They were asking manufacturers to stop spending time coming up with solutions to business problems and spend that time digging deeper for customer insights into a product. Share those insights, and Target will come up with retail solutions. Interesting message, and interesting approach.

However, most retailers are not in the enviable position that Target has worked hard to achieve. But how do smart but smaller retailers thrive in the competitive environment today? Here are a few tips that may help:

Clear Brand: Make sure that your "brand" is crystal clear and emphasizes your particular point of difference. Highlight what you do that's better and different that your competitors. If your "brand" is interchangeable with those you compete against, think about how to differentiate through product, process,  attitude, etc.

Store Experience: Does your store experience communicate your "brand" as you want it to? Is it interesting, entertaining, educational? Walk through your store, or have trusted friends help, to see through a customers eyes what your brand really looks like, and what messages your retail environment sends.

Customer Care: This is one of the biggest challenges in retail, but you've got to get it right whether you're the only employee or you have 100 or more. Do you really send the message that your customer-centric? Even the best don't always get it right. I recently had a bad customer experience at Starbucks, which has great staff training. It is a reminder to me that you've got to make sure your customers have an enjoyable experience each time they visit.

Contemporary Customer Experience: Do you have customer-care programs that you haven't thought about in years? Everybody does. And if they "feel" old fashioned, they will reflect on the brand. Make sure your every opportunity to "touch" your customers is fresh, current and sends an up-to-date message.

In-store Brand Strengths: Do you carry well recognized regional/national brands that would drive customers to your retail environment - especially ones that only you have? Use those brands, and the significant marketing budgets that they have, to leverage your retail environment. They may be products, processes, "back of house" programs. Use whatever you have that competitors don't have and customers will recognize it as a benefit.

High Tech and High Touch Tools: There are so many customer retention management tools available today that help you to identify your best customers and keep in touch with them regularly, in meaningful ways. Programs like UPromise provide you with data while giving customers an incentive to shop at your store. These are more than just the old-fashioned punch cards; these programs are a bonus to consumers and, beyond that, an essential bonus for you as a retailer.

Every day there are actions you can take to make sure you keep marketing your retail establishment. These suggestions are just the tip of the iceberg. Keep marketing in mind every day and consider some of these suggestions, and you'll stay ahead of your competition.

Thanks to Bruce Murdy, President of Rawle Murdy Associates. A marketing, advertising and public relations firm.

 


In Closing....

Over 170 businesses in 10 cities around the country are reaping rewards with our Effective Advertising Program:

Residential Home Construction; Fitness Equipment; Manufactured Housing; Car Detailing; Assisted Living, Landscaping; Pest Control; Realtors; Hearing Aid Center; Funeral Home; Home Improvement; Tire Store; Home Health; Management Consulting; Restaurants; Lasik Surgeon; Vision Center; Motorcycle Sales; Pharmacy; Retirement Community; Tax/Accounting Services; Estate Auctions; Video Store; Cleaning Services; Window replacement; Event Planning; Weight Loss; Shoe Store; Sewing Machine Store; Financial Advisor; Lighting Store; Outdoor Equipment; Chiropractor; Private Investigator; Family Practice; Massage Therapy; Insurance Agent; Car Wash; Convention and Visitors Bureau; Medical Clinic, Attorneys; Home Decorating; Golf Course; Phone Company; Furniture Store; Window Tinting; Vein Center; Auto Parts; Photographer; Plastic Surgery; Locksmith; Cerebral Palsy School; Colleges and Universities; Used Cars; Jewelers; Hospital; Credit Union; Utility Company; Appliance Store; Spa; Savings Bank; Christian School; Bar-B-Q; Men's Clothing; Carpet Cleaning; Plumbing Supplies; Auto Parts

If your business needs some marketing help, we can tell you how other owners are successfully Branding their business with our program. If you see a business in this list that is similar to yours, please call and we will give you details.

Merry Christmas and Happy New Year - we'll see you in 2008!

Larry Kirby, President
Effective Advertising Seminars (and Workshops)
Charleston, SC
843-552-0702
larrykirbyincharleston@yahoo.com
www.effectiveadvertisingseminars.com