MARKETING TIP #108
It's In the Numbers

275% revenue growth in the first full year of recovery - that's a pretty powerful number. That's what researchers at McGraw-Hill found when they studied the recessions and economic downturns of the past fifty years.

But who's realizing those numbers?

The companies that continued to be aggressive in sales and marketing during economic downturns; that's who. Pretty simply put, they stayed in sight and top of mind with their customers and prospects.

Sounds logical now, but even the big boys had to find out the hard way - during the 1975 recession, Avon and Hershey stepped back their marketing initiatives and their slumping profits reflected it. Meanwhile, Revlon and Philip Morris stepped up their marketing and their profits reflected tremendous growth.

Lesson learned - publicize or perish.

A Q1 2008 survey conducted by Financial Executive International (FEI) and Baruch College's Zicklin School of Business in New York found that 23% of the surveyed CFO's are increasing their marketing/advertising budgets in response to the economic downturn. Only 14% were decreasing their budgets.

Where are they putting their marketing dollars? They're concentrating on initiatives that have a direct and measurable business impact. Resources are going into highly targeted tactics that generate demand, support the sales force, provide thought leadership, and that improve customer satisfaction and loyalty.

Many are using Interactive (online) tactics to meet their various goals. BtoB Magazine, along with research partner eMarketer, surveyed 684 b-to-b marketers at the beginning of this year and found that Interactive spending is on the rise - with some tactics seeing as much as a 48.9% increase over 2007. The charts below are from BtoB Magazine's 2008 Interactive Guide:

Marketing Goals Companies Worldwide Are Trying to Achieve Using Select Online Marketing Tactics (% of Respondents)
Brand Building Consideration Direct Response Retention Don't Know
Email 5% 20% 33% 37% 50%
Paid keyword search 27% 29% 29% 7% 8%
Display ads 36% 18% 27% 10% 9%
Branded sponsorship 55% 11% 7% 24% 4%
Referrals 13% 28% 27% 22% 4%
Video ads 33% 30% 17% 12% 8%
Podcasts 22% 25% 5% 33% 14%
Emerging vehicles** 19% 15% 9% 22% 35%
Note: *Marketing executives whose companies use each vehicle.
**Blogs, online games, social networks, virtual worlds, widgets and wikis.
Source: eMarketer citing McKinsey, "The McKinsey Quarterly - How companies are marketing online: A McKinsey Global Survey," Sept. 12, 2007

It makes sense that e-mails are far and away the most popular of the Interactive tactics. E-mails can be personalized with a name and targeted calls to action; can be created quickly and delivered as a timely response to a need or event; and can deliver the highest ROI among media channels. Most importantly, they're flexible and can deliver any number of messages with varying goals.

However, the most effective Marketing Communications (Marcom) campaigns integrate key channels, such as direct mail, public relations and email. When used in tandem, the channels support each other and can engage a customer or prospect more effectively.

North Star Marketing recently put together a multi-channel campaign for AerzenUSA to announce the grand opening of their new eco-friendly facility in Coatesville, PA. Customers and prospects received an HTML email announcing the event and then reminding them of the event. That email drove them to a mini-website with more information about the new facility. Then, a hard-copy invitation was direct mailed to re-enforce the Interactive tactics.

Once a campaign is established, Interactive makes it relatively easy to extend with a blog, podcast or web event. North Star was able to expand AerzenUSA's customer/prospect campaign to reach the media through a targeted email that drove them to a press only website.

Planning, coordinating and executing your message in the right channel takes experience, especially if you're new to marketing. BtoB Magazine outlined the Five Rules for Working with an Interactive Agency; however, these are good points when deciding to work with any marketing agency:

  1. Involve your agency early in defining business strategy and setting clear objectives.
  2. Find an agency partner with expertise in new media platforms such as online video, social media, and viral marketing.
  3. Be willing to explore Web 2.0 applications such as blogs, podcasts and social networks.
  4. Select an agency that has a strong analytics practice and can help you measure performance.
  5. Leverage your database and work with your agency to build lead-generation, CRM and targeted marketing programs.

For 19 years, North Star Marketing has been planning, coordinating and implementing Marcom campaigns for businesses of all sizes. We take a holistic approach to marketing and roadmap the media channels that best fit your goals, budget and timeline. We'll help keep you in sight and top of mind with Interactive, Public Relations, Branding, Marketing and Sales Consulting.

Are you taking advantage of today's economy to gain market share? Call us at 717-392-6982 or info@northstar-m.com, to get started.

Best,

Bowen Smith
Executive Vice President