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Dear Reader,
Spring is in the air, the stock market has been making gains this past week, and some retailers, notably BestBuy, announced decent results in February. Possibly there is reason to feel cautiously optimistic. Recovery may not be right around the corner but the doom and gloom clouds seem to be receding with the winter snow.
Take a look at your own situation with a more objective eye. Are you really as bad off as you thought you were? If not, this may be the time to become more aggressive in competing for a bigger share of your market. While your competitors sit on the sidelines you can make some inroads into their customer base.
As the articles below reveal not all closings are due entirely to the economy. Some industries simply can no longer compete with the newer technologies. If you can't beat 'em, embrace them!
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| How to Steal Customers from the Yellow Pages |
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There are a number of very good reasons that local direct decision makers who are advertising primarily in the Yellow Pages should begin advertising on local broadcast stations immediately and reduce their exposure in the phone books in the future. Cutting back on phone book advertising makes sense for several reasons.
· High cost of Yellow Pages advertising
· Dying medium (many sources predict that phone books will cease to exist in a few more years)
· Passive medium (the phone book just sits there until someone picks it up)
· Can't change the ad for a year
· Younger people don't use the phone book
· There are too many books
Absolutely no competitive protection
· The biggest ads go in the front of the section but people usually flip from the back to the front (so the smallest ads get seen first)
But here is the primary reason. Clutter. Every one of his competitors, including the national discounters is advertising in the same section. And why on Earth would a local businessperson want to give consumers any reason whatsoever to go to the Yellow Pages and shop all of his competitors?
When you have a catastrophic plumbing problem at your house (aren't they all catastrophic?) when do you want a plumber to fix it? That answer would be immediately. Recently I had a plumbing problem and I had no one to call. My old plumber had moved so I was forced to go to the Yellow Pages and sort through hundreds of plumbers in my area. Too bad I didn't have a plumber's telephone number firmly affixed in my mind. I would have called that company first. Instead, I called three companies at random from the phone book and waited for people I didn't know to call me back.
I had the same problem after a storm when I needed a roofing contractor...no specific company in mind to call...and again when I needed a power washing company to clean some tough -to-get places on the exterior of my house. This situation pops up for consumers constantly in every city and town in every country on the planet.
Although the demise of phone book advertising seems imminent, various forms of Yellow Pages books are still widely in use and many businesses still perceive that Yellow Pages advertising is effective for them. And maybe it is, a little. But by not advertising regularly on your station, local direct clients are forcing consumers that are ready to buy their product or service right now to fumble through the Yellow Pages (or go to the internet) and shop all of their competitors. Imagine how many more customers an advertiser could pull in by being the dominate player on an under-fished station like yours, instead of taking the chance that a consumer just might happen to see his ad in the phone book and might happen to call him instead of one of hundreds of his competitors who are running similar ads right next to his.
How many homeowners in your market will be driven to the phone book, Craig's List or Angie's List to find a plumber this week? How many people will have heating and air conditioning problems and do the same? Think about all of the consumers that will be forced to play Russian Roulette in the phone book for flooring contractors, attorneys of all types, bail bondsmen, re-modelers, garage door specialists, landscapers, retail outlets...I could go on and on.
By advertising with you on a consistent basis a business has a chance to sell himself to the consumers by fishing in a media lake that is not being over-fished by his competitors. In many instances the client might even have a monopoly on your station (how many garage door companies are advertising with you this year?). With you he can work methodically to modify the behavior of people who will definitely buy his product or service this week from either him or one of his many competitors. By presenting his case thoughtfully, in an un-muddied media lake like yours, he has the opportunity to catch new customers before they ever go to the phone book and shop every single one of his competitors. In the consumer's mind he could be the voice of authority in his product/service category and catch more fish regardless of the bigger size or better position of his competitor's ads in the Yellow Book.
Broadcasters should be reaching out to local businesses of all types, in virtually every product/service category, and make them aware that by advertising exclusively in the phone book they are simply playing Russian Roulette in a dying medium. By advertising with you on a consistent basis they have the opportunity to deep-sell people who are ready to buy this week, brand those who might buy in the future, control public dialog in their product or service category and keep people from ever having to go to the cumbersome Yellow Pages again. Paul Weyland, President Paul Weyland Training Seminars
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| Hold 'em or Fold 'em |
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A new 24/7 WallStreet report says that, over the last few weeks, the newspaper industry has entered a new period of decline. The parent of the papers in Philadelphia declared bankruptcy as did the Journal Register chain. The Rocky Mountain News closed along with the Seattle Post Intelligencer, owned by Hearst, and Hearst has said it will close the San Francisco Chronicle if it cannot make massive cuts at the paper.
The report includes a list of the ten major daily papers that are most likely to fold or shut their print operations and only publish online, chosen based on the financial strength of their parent companies, the amount of direct competition that they face in their markets, and the industry information on how much money they are losing. Based on this analysis, it is possible that eight of the fifty largest daily newspapers in the United States could cease publication in the next eighteen months.
- The Philadelphia Daily News...with newspaper advertising falling sharply, the city cannot support two papers and the Daily News has a daily circulation of only about 100,000. The tabloid has a small staff, most of whom could support the web operation for both of the city dailies.
- The Minneapolis Star Tribune has filed for Chapter 11...it could become an all digital property, but supporting a daily circulation of over 300,000 is too much of a burden.
- The Miami Herald, which has a daily circulation of about 220,000...There is one very small chance it could merge with the Sun-Sentinel, but it is more likely that the Herald will go online-only with two editions, one for English-speaking readers and one for Spanish.
- The Detroit News is one of two daily papers in the big American city badly hit by the economic downturn...cutting back the number of days that the paper is delivered will not save enough money to keep the paper open.
- The Boston Globe is losing $1 million a week...Boston.com, the online site that includes the digital aspects of the Globe, will probably be all that is left of the Globe.
- The San Francisco Chronicle. Parent Company Hearst has already set a deadline for shutting the paper if it cannot make tremendous cost cuts. The online version of the paper could be the only version by the middle of 2009.
- The Chicago Sun Times is the smaller of two newspapers in the city...and has no chance of competing with The Chicago Tribune.
- NY Daily News is one of several large papers fighting for circulation and advertising in the New York City area. Based on figures from other big dailies it could easily lose $60 million or $70 million and has no chance of recovering from that level.
- The Fort Worth Star Telegram is another one of the big dailies that competes with a larger paper in a neighboring market...The Star Telegram will have to shut down or become an edition of its rival, The Dallas Morning News.
- The Cleveland Plain Dealer is in one of the economically weakest markets in the country. The Plain Dealer will be shut or go digital by the end of next year.
- The Ann Arbor News just announced it will close after 174 years. - from a report from the Center for Media Research.
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Style Beats Substance? |
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"I hope that the person who sent this was not commenting on our Seminar!"
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| Anyone for a hot bold "Starbucks"? |
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Interesting article in the current papers on Starbucks annual Stockholders' meeting. It was held on a recent Wednesday, in Seattle the tone was different than the usual "here's the new hot "Bucks" thing for this year..."
Howard Schultz, chairman and chief executive if Starbucks spent the time to review what had happened this year and how they would work their way out of it.
While some of their strategy seems to me is not targeted too well, they say their efforts will be to protect and enhance their "franchise". They want to keep the idea that they have value in their offerings and try to differentiate their products from say McDonalds which has some similar offerings. It seems that comparable McDonald's breakfast food & coffee is $1 less than Starbucks'.
In a recession, extravagances are the first thing to go. So how does Starbucks do this "brand" building when some of their actions may be lessening their brands? If you happen to drink decaf and go to Starbucks after the morning and they don't have it, they will make it for you if you want to wait, but it is not there ready as it was. So the nearby Starbucks which I frequent, which is almost totally empty most weeknights after about 7:30 p.m. will keep the lights on , the employees there, the doors opened, but not have decaf. After all who would want decaf in the evening?? Seems to me that if I go to a Starbucks, I expect it to be a Starbucks, they have made their way their way up my ladder for good coffee and a nice environment. So lessening the normal product offerings seems to make it less of a Starbucks. How can that possibly help their "brand"?
They claim some store sales were down 3% in 2008. Wow, the press would have us believe the economy is failing , but they are down just a 3%! I bet they spill more than that each week. Maybe better training, less spillage and cutting back the times stores are open, but have little or no business, would easily make up for the 3% and maybe move them forward.
But please if I go into a Starbucks, let it be a Starbucks!
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