how to make your advertising a more profitable investment ron jenkin and sharon bai jenkin...

How To Make Your Advertising a More

Profitable Investment

Ron Jenkin and Sharon BaiJenkin Advertising & Marketing

“Doing business without advertising is like wetting yourself in dark trousers. It gives you a warm feeling, but no-one else knows what you are doing.”

Our Message is Directed to People Wanting Better

Results

Time to Re-examine Where

You’re At

~ More from current customers? (Nurturing)

~ Incentivise customers to bring new customers (customer get customer)

~ More by improving staff training/incentives?

Inevitably you’ll need to think ‘New Business’, so

start with a plan, document it

~ Set Objectives (What do you want to achieve?)

~ Do Homework1 Marketplace. Your Industry. Your Share

2 Future of marketplace

3 Competitors. Their positions/ads/market share

4 Strengths, Weaknesses, Opportunities, Threats

5 Target MarketRoy Morgan Lifestyle StudyPinpointer GeographicsBuyer Purchase Categories

6 Consumer BehaviourPositive/NegativePerceptual MappingBrand Positioning

7 What is your USP?

8 Media Rates/Target Audience Information

Objectives

~ Your goal

~ Be specificIncrease sales by X%What products/services to achieve

increase?Whom to promote - who are they?

~ Other objectivesSales team to reach weekly targetOvercome outdated image and present

asinnovative.

HomeworkAssess the Landscape

1. Marketplace. Your Industry. Your Share

Who is in your marketplace?Market share?

2. Future of MarketplaceInvestigate societal

changes/trends

HomeworkAssess the Landscape

3. Competitors. Their positions/ads/market share

What are competitors doing?What are their

strengths/weaknesses?What is their market share?How much are they spending?Target market?

HomeworkAssess the Landscape

4. SWOT Analysis - helps to define issues for strategy

Strengths (Internal)Special K is a low-fat cereal

Weaknesses (Internal)Is only budgeting 5% - competitors 10%

Opportunities (Macro)Joint promotion - pedometer

Threat (Macro)New similar cereal introduced

HomeworkAssess the Landscape

5. Target MarketDemographics - age, income, sexPsychographics - lifestyleGeographics - locationCustomer behaviour

Roy Morgan Australian Lifestyle Segments

BasicNeeds3.5%

RealConservative

4.5%

SociallyAware11%

YoungOptimist

9.1%

Look atMe

13.3%

FairerDeal5.9%

SomethingBetters9.5%

VisibleAchievers

17%

ConventionalFamily Life

9.1%Trad-itionalFamily Life17.1%

Pinpoint Geographics

~ Prestige - Dalkeith, Peppermint Grove, City Beach

~ High Status Urban - Perth City, East Perth

~ Family Achievers - Duncraig, Winthrop, Bull Creek

~ Mid Status Urban - Subiaco, Leederville, Northbridge

~ Desirable Suburban - Shenton Park, Canning Bridge, Kensington

~ Mid Status Suburban - Woodlands, Ardross, Rossmoyne

~ Rural Fringe - Whiteman, Gidgegannup

~ Young Family - Canning Vale, Yangebup, Alexander Heights

~ University Enclaves - Crawley, Waterford

Buyer Purchase Categories

High ImpulseEg. Chocolate Bar

Low Information

Eg. Flour

Low ImpulseEg. Furniture

High Information

Eg. Car

Price

HomeworkAssess the Landscape

6. Customer Behaviour

Buyer BehaviourWho is the end user?Who is the influencer?Who is the decision maker?Who is the purchaser?

Positive/Negative Purchases

Positive Purchases~Cars

~Food

~Clothing

~Travel

~Furniture/Homewares

~Dining Out

Negative Purchases~Replacement Tyres

~Insurance

~Medication

~Security

~Office Equipment

Perceptual Mapping

High Quality

Low Quality

Least Expensive

Most Expensive

Ferrari

Daewoo

Hyundai

Lancer

Nissan Pulsar

Holden Astra

Statesman

Audi

Mercedes

Convenient Bulk

Leader/Authority Quality

Range Status

Decorator/Designer Socially Aware

Exotic/Expensive/Imported Healthiest

Service Cheapest

High Fashion Innovators

Brand Positioning

HomeworkAssess the Landscape

7. What is your USP?What sets you apart?Your point of differenceMeaningful distinctive consumer

benefitWorks best when can’t be matched

Eg. Gillette Sensor Razor

HomeworkAssess the Landscape

8. Media rates/target audience informationDetermine media

options/rates/circulation/distributionWhat is the media’s target audience based

on? geographics/demographics/psychographics?

Eg. ScoopMust match your target marketDetermine best media spend

Make Decisions - Form Conclusions

~ Which target audience?

~ Which media?

~ Best USP?

~ Which ‘position’? (ladder of the mind)

Develop Advertising Strategy

The Marketing Mix - How the Objective will be Achieved

Local Press Householder Mailings

Industry Press Major Press

Direct Mail Radio

Television Cinema

Point-of-Sale Telephone

Outdoor Publicity/PR

Yellow Pages/’BIG’ Directories E-commerce

Develop Creative Strategy

Based On:

~ Most appropriate USP

~ Best media

~ Budget considerations

~ Creative opportunities

~ Positive/Negative

~ Campaignability, Recognition/Recall = Branding

~ Human Needs

Human Needs

~ Making money

~ Saving effort

~ Impressing Others

~ More leisure

~ Self-improvement

~ The need to belong

~ Security

~ Getting something other’s can’t

Generate Creative Execution

~ Give it ‘cut-through’

~ ‘What’s in it for me?’ (benefit to customer)

~ Give it ‘buildability’ (or campaignability)

Classic Creative ‘Execution’ ListTestimonial Extreme demonstration

Famous presenter Slice of Life

Before and after

Now Your Ads are Ready to Run

Here’s a Checklist:

~ Avoid the ‘Name, Rank and Serial Number’ advertisement

~ Getting your name across is not enough

~ Never assume

~ The most successful baker doesn’t sell bread

~ Expect immediate results or don’t write the promotion

~ Guarantee your way to success

~ Avoid the ‘Sale’ syndrome

Now Your Ads are Ready to Run

Cont...

~ ‘Drip-feeding’ is better than one ‘Big Bang’

~ Don’t change it because YOU are tired of it

~ How to let your customers help you

~ Client Advisory Boards

~ Questionnaires

~ Call to Action? Phone Now. Send Coupon

Form Strategic Alliances

Good Ads, Bad Ads, Power Words and

Headlines~ Use the proven ‘magic’ words … You … Free … New … Money … Now … Discovery … Amazing … Introducing … Suddenly … Health … Easy … Safely … Proven … Guarantee … Save … Love …

~ Inject ‘news’ into your headline. It can achieve up to 22% better recall.

~ Putting your headline in quotes can increase recall by up to 28%.

~ Localise your headline to your city or suburb. People are most interested in what is happening where they live.

Evaluate the Effectiveness and Value of Your

Advertising~ Cash register (sales) or orders or coupons returned

~ Traffic numbers

~ Awareness increase (researched)

~ Attitude shift (politically)

~ TV and radio - cost per thousand effectiveness (based on Target Audience Rating Points)

~ Press and magazine - cost per reader effectiveness

Summary

Set aside the necessary dollars. Create a budget. Budgeting for marketing is no less crucial than budgeting for rent or wages.

Remember, advertising is not a science (nor like a slot machine into which you put money, pull handle and get a result). But if you do your homework and take the right steps, you can take the risk and expense out of it.

It is an investment that will reap rewards - if you do it properly.