Recession Marketing

Stretching YourPromotional Penniesin an Economic Downturn

By Lisa M. WoganUpper Crossing Communications

Highlights …

Marketing vs. Advertising Marketing Elements Strategy, Analysis & Plan Promotion Types & Local Opportunities

Internet/E-mail/Social Media

Presenter Background

MSM Board President/ 10-year volunteer Independent Mktg. Contractor Marcom Coordinator – Economic Alliance of Kankakee County

10 years in publishing B.A. English

What is Marketing?

The process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.

-Principles of Marketing

What is Advertising?

The activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media.

- The American Heritage Dictionary

Marketing Hierarchy

Business Plan

Marketing Strategy

Annual/Monthly Promotion Plan

Advertising

"Success is no accident.

It is hard work, perseverance, learning, studying, sacrifice and

most of all, love of what you are doing

or learning to do."

Pelé says:

Marketing Elements Product Selection Price Point Operations (hours, policies, etc) Building/Storefront Condition Reputation Employee Conduct/Grooming Customer Service Displays Visual Materials, inc. logos,

brochures, business cards, menus Promotional Activities

Top 5 Best Practices

Customer Focused Marketplace Understanding Regular v. Sporadic Attention Consistency/Brand Integration Targeted, Multi-channel Promotion

Marketing Strategy

The marketing strategy section provides the company's marketing strategy statement, summarizing the key target buyer description, competitive market segments the company will compete in, the unique positioning of the company and its products compared to the competition, the reasons why it is unique or compelling to buyers, price strategy versus the competition, marketing spending strategy with advertising and promotion, and possible R&D and market research expenditure strategies.

Source: Business Owners Toolkit www.toolkit.com

See: Marketing Strategy Checklist & Worksheet

Market AnalysisDetermining your viability and competitive advantage

Market Research Professional

consultants DIY

Written/Phone Surveys

Conversation Observation Ref. books &

sites(Claritas) Market/industry

periodicals, association newsletters, local newspapers, etc.

Competitor Analysis Strengths Weaknesses Opportunities Threats

See: Market Research GridTarget Market & Projections Worksheet

Greenberg Development Report

Downtown Momence Market Analysis SWOT Market niche opportunities &

recommendations Building/environmental assessment Demographic information Trade area definition

Available at MSM office & library

Formulating a Promotion Plan

Logical outgrowth of short- and long-term company objectives and your marketing strategy

Breakdown of each marketing event or action planned to increase sales

Organized by month, quarter or year Specify: Timing, goals & objectives,

marketing channel, cost, probability of effectiveness

See: Marketing Plan Worksheet &

Monthly Marketing Calendar

Timing Your Promotions Considering conflicts and synergies to

get biggest bang for your buck! Internal Events (anniversaries, budget

cycle, new products, etc.) External Events (elections, sports, local

community celebrations & social activities)

Seasonal Cycles Major Holidays Major Industry Events Major Competitor Activities Supplier Events Major Prospect &

Customer Activities

Source: www.frugalmarketing.com

Types of Promotion Displays/Signage Marketing Collateral, e.g.

brochures, flyers Referrals Expos/Trade Shows Event Sponsorship Association membership Strategic Partnering/

Cross-promotion Advertising (media and direct) Internet/e-mail

Association Membership

Main Street Momence Momence Chamber of Commerce Bradley-Bourbonnais Regional Chamber of Commerce

Economic Alliance of Kankakee County

National Federation of Independent Business

Industry-specific groups

Member Benefits

Discounts Ribbon cuttings List/information sharing Newsletter receipt/exposure Networking Political advocacy

Local Advertising Channels

Momence Progress-Reporter Herald Country Market Daily Journal Russell Publications Radio: WVLI, WKCC, WONU, WGFA, WRXQ, WKAN,

WIVR, etc. Directories: yellow pages, Home Pages Church bulletins H.S. yearbook and sports programs MYSA team sponsorship/signage Glad Fest float sponsorship Momence Chamber of Commerce community booklet

Channel Selection Seven factors by which different media outlets

can be assessed in order to build product awareness, create interest, provide information, stimulate demand and reinforce the brand via paid advertising include:

Creative Options Creative Cost Market Reach of Media Message Placement Cost Length of Exposure Advertising Clutter Response Tracking

Source: www.knowthis.com

Advertisement Structure

APPEAL +

VALUE PROPOSITION +

SLOGAN/LOGO

Earned Media Exposure

Be Newsworthy! Substantial giveaways Company hires, new products, new

location, etc. Unique in-store promotions/contests Co-operative promotions Sharing expertise Charitable outreach Civic board membership Unique personal experiences Be on trend

Cross-Promotion &Co-op Advertising Benefits

Efficiency Cost Credibility Impact

Examples: Reciprocal business cards, menus, promotional flyers, product sample, coupon distribution; share ad space; pool mailing lists; co-produce promo event

Local Opportunities Main Street Momence

Christmas Gathering Welcome Wreath Promo Bordertown Hauntings participation Community Banner Program Cruise Night goodie bags Discount shopping card Regional restaurant guide Billboard Dixie Daze Taste of Momence Event sponsorship Downtown Directory Grand Openings, Mother’s Day promotion

Regional Promotion

Internet Promotion

Channel Benefits Relatively low cost or FREE Fosters customer interaction Grows brand/store loyalty Eases/speeds communication Breaks down traditional media

barriers

Who’s on the Internet?

74% of U.S. adults use the internet! Rates are steady across community type and racial and ethnic lines, increasing with educational attainment and household income. 83% of those with a household income of 50-75K, and 87% of those with some post-high school education use the internet.

70% of those 50-64 use the internet.

Source: Pew Research Center, 12/2009

Types of Internet Promotion

Websites/blogs (Blogger, WordPress) E-mail marketing (Constant Contact,

Mail Chimp, iContact) Reference/mapping sites (Google Local,

Google Street Maps, Insider Pages, Manta, Yelp, City Squares, Four Square)

Community websites/blogs (I-57 Life/Best Bites)

Social Media (Facebook, Twitter, YouTube, LinkedIn, etc.)

Paid Advertising

Social media’s for kids, right?

Facebook and Twitter boasted triple-digit growth

in 2009, with social networking now accounting

for 11% of all time spent online!

Source: The Neilsen Co.

Facebook User BreakdownAs of February, Facebook had 400 million users worldwide. Depending on the day, it is the most visited site in the United States. The average user spends more than 55 minutes per day on Facebook. According to Neilsen, Facebook reaches 56% of the active U.S. Internet universe.

Source: Ken Burbary

Facebooking Downtown!

Sensei Steve’s Karate Our Savior Lutheran Church Stage Door Sweet Shoppe Kanga Roof China Wok Momence Fire Protection District Marcotte’s Bordertown Pub

How much do I spend?

Rule of thumb: 20% of resources – budget and time – should be spent on

marketing.

Ad/Promo Budget

Counselors to America's Small Business (SCORE) and the U.S. Small Business Administration (SBA) define the variable for a proper advertising and promotion budget to be between 2% and 10% of sales.

Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8% of gross sales.

SCORE says:

"Often, small businesses estimate their sales revenue, cost-of-goods, overhead and salaries and then gross profit. Anything left is considered available funds for marketing support. That's not such a good idea. If you are the new competitor in the marketplace, you will have to spend more aggressively to establish your market share objective."

“Marketing is too important to be left to the marketing department.”

“Take risks. Ask big questions. Don't be afraid to make mistakes; if you don't make mistakes,

you're not reaching far enough.”

David Packard said:

Resources National Main Street Center - National Trust for Historic

Preservation http://www.preservationnation.org/main-street/ U.S. Small Business Administration http://www.sba.gov/ SCORE – Counselors to America’s Small Business

http://www.score.org Nielsen Claritas SiteReports www.claritas.com Crain’s Chicago Business – Enterprise City blog

http://www.chicagobusiness.com/ Duct Tape Marketing ducttapemarketing.com Small Business Trends http://smallbiztrends.com NetMBA Business Knowledge Center www.netmba.com Pew Internet & American Life Project www.pewinternet.org

www.morebusiness.com www.mplans.com www.knowthis.com www.creativebusiness.com www.allbusiness.com

Main Street Momence 103 N. Dixie Hwy. 815-472-3861 mainstreetmomence@sbcglobal.net

KCC Small Business Development Center (Ken Crite) 815-802-8222

Thank you!