Marketing After the Recession

Bauer Associates | N Water St, Batavia, IL 60510-1954, (630) 406-8595

04/08/23 | Slide 1

Marketing in a Recession and Recovery Dec 2009

Marketing in a Recession and Recovery

Positioning Your Company for Ongoing Success

04/08/23 | Slide 2

Why Survival Strategies Don’t Work• #1 killer of businesses because

they are about:– Conserving resources– Slowing your movement– Hoping no one notices that you are

dieing• And they seldom do more than buy a little

04/08/23 | Slide 3

The Worst Thing You Can Do Is “Go Dark” to the Market

04/08/23 | Slide 4

Evidence Supports Visibility

• Yankelovich/HarrisExecs agree that seeing a company in a down market makes them feel more positive about the company and keeps them top-of-mind when making purchase decisions.

• McGraw-Research Laboratory of Advertising PerformanceStudy of 600 BtoB marketers found that those who maintained or increased advertising during a recession averaged sales growth of 275% over the preceding five years.

04/08/23 | Slide 5

Evidence (Cont.)

• American Business PressStudy revealed sales and profits could be maintained and increased in recession years and in the years following by those who maintain an aggressive posture while others become non-participants.

• Harvard Business ReviewReport of 200 companies found that sales increases came from companies that advertised the most during the recessionary year.

04/08/23 | Slide 6

Where Should You Focus Resources?

Innovation Provides the Only Real Escape Hatch

04/08/23 | Slide 7

Lots of Innovation Occurs During Weak Economies

• 1919—The Assembly Line (Ford)• 1920—Market Segmentation (GM)• 1931—Brand Management (P&G)• 1943—Skunk Works (Lockheed)• 1950s—Lean Manufacturing (Taiicho Ohno,Toyota)• 1967—Scenario Planning (Shell)• 1973—360-Degree Reviews (DuPont)• 1987—Six Sigma (Motorola, GE)• 1989—Outsourcing (IBM)• 1990—Reengineering (Michael Hammer, Ford)• 2000s—Open Innovation (P&G)

Source: Business Week, March 23, 2009

04/08/23 | Slide 8

Are Any Printers Innovating?

04/08/23 | Slide 9

Let’s Look at Two Outside the Box • Tukaiz (

www.tukaiz.com)• SendOut Cards (

www.sendoutcards.com)

04/08/23 | Slide 10

Question:

Knowing What You Know Today, What Would You Have Done Differently?

04/08/23 | Slide 11

More Importantly, What Would Make Tomorrow Different?• Strategies and tactics• Services• Relationship building• Join ventures and partnerships

04/08/23 | Slide 12

The Non-recovery Recovery

• U.S. jobless rate peaks in 2nd half of 2010

• GDP rises 2.5% 2010• GDP rises 2.8% 2011• Slow recovery worsens

deficit• Second stimulus?

Source: Organization for Economic Development, Nov. 2009

04/08/23 | Slide 13

What’s the Print Economic Outlook?

• Employment levels and credit markets will improve in 2010

• Anticipate signs of modest recovery in early 2010

• Slow U.S. GDP growth of 2.2% over next decade

04/08/23 | Slide 14

Outlook (cont.)

• Print does best in mature part of recoveries– Don’t expect

immediate help • Recovery will only lift

those companies that structurally change their businesses

04/08/23 | Slide 15

Outlook (Cont.)• Agency Bradford & Maloney sees best print

opportunities for:– Gift and discount cards– Cents-off coupons– FSIs– Direct mail– Digitally printed books– Large-format products– Variable-data digitally printed products– Newspapers printed by commercial shops

Source: NPES 2009 Industry Summit

04/08/23 | Slide 16

Some Categories Will Never Be the Same• 383 magazines closed in the first nine

months of 2009– 259 new launches in same period– 64 ceased print versions but continued online– Closings outpaced launches– Marketers keep shifting dollars to the

Internet and especially to search engines

Source: MediaFinder.com

04/08/23 | Slide 17

So How Will Your Team Cope With the “New Normal?”

04/08/23 | Slide 18

Study Shows Consumers Have Internalized Recession Experience

• Assumptions underpinning segmentation no longer valid

• Marketing strategies that don’t recognize the diversity of recession experiences won’t work in post recession

• It’s the “new normal,” not just a cyclical phenomenon

• Deep-rooted change in favor of a more restrained approach

Source: “Marketing to the Post-Recession Consumers,” Decitica

04/08/23 | Slide 19

Four Distinct Emerging Consumer Segments• Steadfast Frugalists

– Self-restraint, prudence– 20% of all consumers– 60% women

• Involuntary Penny-Pinchers– More stressed, worried– Heavy in 30s & 40s– 29% of consumers– 60% women– 38% exceeded income

04/08/23 | Slide 20

Emerging Segments (cont.)

• Pragmatic Spenders– Most able to resurrect

past spending– Heavy in 60s – 29% of consumers– 60% men

• Apathetic Materialists– Least changed – 22% of consumers– Younger, singles,

slightly more women

04/08/23 | Slide 21

New Strategies • Find a way into the

decision-making process– Bring something of value– Become a thought leader– Get people who know

marketing• Embrace all things digital

– Not just print• Understand how multi-

channel works – Become a player

• Develop a consultative, not transactional sales team

04/08/23 | Slide 22

Warning!

Growth Is Not a Strategy. Dominating a Category Is.

04/08/23 | Slide 23

How Do You Know If Your Sales Team Is Transactional?

• Order takers won’t cut it in the new the new marketing environment

• You have to decide who can take you to a higher level and who can’t

04/08/23 | Slide 24

Transactional Consultative

• Comfortable with printing process

• Know production managers

• Know clients' print requirements

• Read printing industry publications

• Comfortable with business strategy

• Know executive managers

• Know clients' business objectives

• Read clients' industry publications

04/08/23 | Slide 25

Transactional Consultative

• Sells company's products/services

• Sells him/herself• Takes

responsibility for quality product

• Sells solutions

• Sells the team• Takes

responsibility for program benefits

04/08/23 | Slide 26

Improve Your Customer Aim

04/08/23 | Slide 27

Existing Customers Are Your Best Source of Incremental Growth• They already know and trust you• PLUS, new customer acquisition can be 6-

10 time more expensive than retaining customers– So why do so many companies take such a

rudimentary, reactive approach to retaining and growing existing clients?

– What’s your plan for existing clients?

04/08/23 | Slide 28

But You Need to Do Your Customer Homework

• Aiming at the wrong customers is an expensive waste of time

• You need to make fact-based decisions

04/08/23 | Slide 29

Start By Dividing Your Customers Into Three Tiers• Bottom feeders

– Those who primarily buy on price– Tend to shop services with little or no loyalty

• Partnership tendencies– Tend to favor you– Interested in multiple services

• Full partnership– Complex needs– Interested in solutions – Understand total costs as opposed to price per m– Want to work with fewer, but better vendors

04/08/23 | Slide 30

Next, Aim at Customer Groups• Identify customers by market segments.• Look for growth markets.• Learn MORE about your customer's business.• Address the specialized needs of specific market

segments.• Bring ideas that matter.

– How to virtually eliminate print obsolescence through a demand-based system.

– How to increase retail store traffic by 10% though better data intelligence.

04/08/23 | Slide 31

How Well Do You Know Your Best Customers’:

• Competitors? • Market share?• Industry growth trends?• Nature of products—luxury, etc. • Hot & struggling products?• Distribution channels?• Factors affecting markets?• Stock performance?

04/08/23 | Slide 32

Aim High

• More people high-level people are involved in major print-related decisions.

• Don’t get stuck at the production procurement level.

04/08/23 | Slide 33

Aim Beyond Print

• Print may be the least of your customer's marketing issues.

• May be grappling with:– Obsolescence costs.– Speed-to-market issues.– Content management.– Marketing ROI

measurement.

04/08/23 | Slide 34

Offer New Services• Database intelligence.

– Segmentation, product propensity, etc.• Automated campaign management.• Digitally-based communications delivery.

– Print.– Email.– pURLs. – QR Codes– Dynamic mapping. – Text messaging.– Blogs.

04/08/23 | Slide 35

Most Important

• Understand the new world of multichannel communications.

• Be able to demonstrate how print plays well within that world.

“We don’t have mass communications. We now have a mass of communications.”

04/08/23 | Slide 36

Do You Need to Change Your Company’s Description?• We keep “elevating”

the language– UPS is now a logistics

company– Banks are now financial

services providers– Should you become a

Marketing Service Providers?

04/08/23 | Slide 37

Contrarian View

• Confuses customers• Takes a lot of

marketing time, attention and budget

• Can’t you just BE IT?

04/08/23 | Slide 38

Joint Ventures Strategic Partnerships

04/08/23 | Slide 39

Cardinal Rules

• Make sure one (preferably both) of you have customer demand for the product or service offering.

• Joint ventures of faltering firms usually don’t work

04/08/23 | Slide 40

Best Deals Are With Customers• U. of Chicago is largest

scholarly press.• Put 14,000 low-volume

books in digital BiblioVault.

• Serves 65 publishers. • Partnered with Edwards

Brothers to install and manage digital equipment in the Chicago Digital Distribution Center (CDDC).

• Founded with Mellon Foundation grant.

04/08/23 | Slide 41

Three Essential Networking and Relationship Tools• Corporate Blogs

– Weblog with latest entry at the top– Create your own and/or participate in others– Check http://blogsearch.google.com or

http://www.technorati.com/) for blogs– Free hosting— http://wordpress.com

• Twitter– Free social networking micro-blogging site– 140 character posts– Run keyword searches at search.twitter.com– Set an objective

04/08/23 | Slide 42

Relationship Tools (Cont.)

• LinkedIn– Business social network– Locate past and present

colleagues and make new ones– Participate in groups and

discussions– Give and make recommendations– Establish thought leadership

04/08/23 | Slide 43

How It All Works Together

• Distribute Print Strategist e-newsletter to 462 print company decision makers

• Roll articles over to blog http://printstrategist.wordpress.com

• Post latest articles at Twitter and LinkedIn• Pick up new followers, make new contacts

and initiate dialogues

04/08/23 | Slide 44

My 18-Month Stats• 250 Twitter followers

– 4 lists• LinkedIn

– 104 connections– 4 recommendations

• Print Strategist E-News– 462 subscribers– 24.35% open rate– 52.64% clickthroughs– .058% unsubscribe

• Print Strategist Blog– 2,314 page views

04/08/23 | Slide 45

Thank You.

Hope that you are successful in positioning your company for

ongoing success.Larry Bauer—Print Strategist

Bauer Associates630-406-8595

lbauer@bauerassociates.netbauerassociates.net

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