introduction to ntr dealer group - rab.com · non-traditional traditional 15% newspapers $22.8...

Introduction to NTR & Dealer GroupAn RAB Webinar

Presented by Morrison and Abraham

Radio Advertising Bureau, www.rab.comMorrison and Abraham, www.morrisonandabraham.com

Copyright, 2009

Introduction to NTR & lDealer GroupPresented bySusan NovickiPresident

Morrison and Abraham

Brandeis HallVP/TrainingRadio Advertising Bureau

Introduction to NTR & Dealer Group

RAB WebinarSeptember 17, 2009p ,

Host: Brandeis C. Hall , Radio Advertising BureauPresenter: Susan Novicki, President of Morrison and Abraham

www.morrisonandabraham.com 781.986.2100




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Proactively pursuing NTR revenue, through direct relationships with non-advertising decision makers, more powerfully impacts a company’s long term growth

A company’s greatest marketing asset is its sales force and sales effort

more powerfully impacts a company’s long-term growth than any other sales activity. To meet ever-increasing demands, a sales rep cannot just sell more at a higher price. Reps need to:

diversify their activityexpand their customer base, p ,increase the value of what they sell for their clients, and provide fully integrated marketing programs.

We help them do all four.

IT’S NOT ABOUT MEDIA

It’s about driving sales, driving traffic and g

changing consumer behavior.




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Non avail situationsEvolving categories and understanding the

It’s All About Methodology

Evolving categories and understanding the current economic climate and drivers affecting each companyNon-advertising decision makersCreative ideas based on client needs

Salespeople still have to sell regardless of economic forces

Where does this money come from?




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Traditional Media Outlets

MediaTotal

Spending ($ Billions)

Total Sales & Marketing: $814.8 B

Local Radio $7.2

National TV Networks $23.8

Cable TV $19.1

Magazines $27.6

Spot TV $17.2 Non-Traditional

Traditional 15%

Newspapers $22.8

National Radio $3.5

Syndication TV $4.2

TOTAL $125.3

Outlets85%

Non-Traditional Media Outlets

Promotion Spending

Trade Promotion $125,005,000,000Advertising $445,511,000

Total Sales & Marketing: $814.8 B

Database/Direct Marketing $173,200,000,000Loyalty Marketing $2,060,000,000Experiential Marketing* $141,000,000,000Sponsorships $13,413,000Cause-Related Marketing $1,000,000,000Corporate Communications $88,502,000,000In-Store Marketing $973,000,000

Branded Entertainment $52 800 000 000

Non-Traditional

Traditional Media15%

Branded Entertainment $52,800,000,000

Direct Mail $58,400,000,000

Telephone Marketing $46,100,000,000

TOTAL $689,498,924,000

*Opportunities for consumers to interact or participate with a brand in ways that engage the senses.

Outlets85%




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Harvest the Money TreeSenior

Management

VP f S lVP ofVP of Corporate VP of SalesVP of Marketing

VP of Advertising

Regional Sales Manager

Regional Marketing Director

Brand or Product Manager

Ad Agency

Corporate Comm.

Public Relations

Government Affairs

Channel or Ethnicity Manager

Sports & Event Sponsorship

Regional

Digital Marketing

Promotions Manager or

Director

Advertising Managerto place and manage media buys

Non-Traditional RevenueDecision-Maker Roles

to place and manage media buys

Brand Managerto increase brand awareness and loyalty across the country

Marketing Managert i k t h th tto increase market share across the country

Sales Managerto increase sales for a given territory




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Client: Schwan/Red Baron Stone Hearth PizzaDM Title: Regional Sales ManagerDescription: 2-week campaign with commercials. Consumers

t ti ll t d t i f th h t i th

Success StoryThe Racheal Ray Trip Giveaway

automatically entered-to-win for the chance to win the grand prize when they use their Stop & Shop & Giant Supermarkets Rewards Card to purchase either 2 Red Baron Stone Hearth or 2 Red Baron Classic Pizzas. Grand prize winners will be chosen at random (one from Stop & Shop / one from Giant) to receive a FREE trip for 2 to New York to see a live taping of Rachael Ray. Trip to see Rachael Ray includes overnight hotel accommodations, round trip train transportation, and two tickets to the show! They can also enter-to-win on-line by going to the landing page at station website.

Investment: $35,000

Knowledge-Based SellingSales Process Overview

ProspectingRenew

Sales Process

Research

LandscapingClosing

Execution

Recap

Dialing for DollarsProposal

Closing




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Non-Traditional RevenueRetailers

Dealer GroupsD t t StDepartment StoresDistributorsGrocery/HBC RetailersHome Builders and Home Improvement StoresHome Improvement StoresMass Merchandisers

Non-Traditional RevenueDirect to Product

Alcoholic BeveragesAutomotive

Financial ServicesHealth CareAutomotive

Auto AftermarketConsumer ElectronicsConsumer Packaged Goods

Health CareHome ImprovementWireless




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Prospecting and Research

Traditional advertising

Basic ProspectingOffice buildings

Advanced Prospectingg

Traditional promotionPublicationsYellow PagesEvents and venuesAssociations with Sports Teams

gTrucksSecurity registersAssociation websites




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Landscaping

National/Regional Sales ManagerTrade Marketing Manager

Decision-Maker Titles

Trade Marketing ManagerAccount/Territory/Zone ManagerBrand/Product ManagerDirector of MarketingBusiness Development ManagerGovernment Affairs RepresentativepBranch ManagerMarketing Communications ManagerHuman Resource Director

Dialing For Dollars

Getting a Homework Assignment

Product/ServiceTarget Customers TimingBudget K P tKey Partners




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Developing and Presenting Proposals

Based on your answers to the dialing for dollars questions,

Brainstorm ideas that meet the needs of the client. Match assets at your disposal to clients needs. Present 2-3 “Idea Starter” to client to determine interest level before developing full proposal.Develop a full proposal based on the business needs of the client that you both have brainstormed together.the client that you both have brainstormed together.

Closing

On a scale of 1-10, where is it, what needs to be done to get it to a 10?

Create a sense of urgency

Follow up within 2 weeks to close the sale

Bottom line is, the longer it’s out there, the , g ,less chance you have of closing the deal!




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Execution and Recapping

Deliver what you promise; don’t promise what you can’t deliver

Clarify responsibilities as part of the closingClarify responsibilities as part of the closing

Agree on methods for measuring results

Provide a written, complete recap to the clientInclude as much information as you can. The recap often sets up the next program. Don’t skip this step!

Take pictures, screen shots, provide copy, letters to winner, etc.

Be creative Ask for the renewal!

REMEMBER:

The best NTR leads are well known national brands and companies.




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Dealer Groups and Co-Op Advertising

Prospecting and ResearchWhat is Co-Op Advertising?

The manufacturer (or distributor) pays a portion or all of the advertising costs based on:

Retailer’s Accr ed F ndsRetailer’s Accrued FundsA retailer accrues funds based on total purchases of a manufacturer’s product. (e.g., $100,000 in purchases equals $4,000 in Co-Op advertising with a 4% accrual). Usually percentage ranges from 1% to 5%.

Manufacturer’s ParticipationThe share of an advertising claim a manufacturer will pay (usually 50% to 100%)(usually 50% to 100%).

Ad RequirementsIn order to qualify for certain Co-Op plans, retailers need to follow the manufacturer rules, such as ad copy requirements. The rules can be simple or complicated, varying by almost every manufacturer.




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RETAILER Advantages: One decision maker

Prospecting and ResearchVertical Co-Op

MANUFACTURER

MANUFACTURER

One decision-maker. If you can find a large amount of money, it can be a great payday.

Disadvantages: Small Accruals.L d l ft

MANUFACTURER

Large dealers often handle all their co-op and don’t need our help.

Prospecting and ResearchCo-Op Advertising Advantages

The Effect of Co-Op Advertising:Increases the ad money retailers can spend.Increases local exposure and sales for suppliers.

Manufacturers’ Perception of Co-Op:Local advertising is good for the dealer; it is good for the manufacturer because it provides a close, local tie to the consumer and has a direct correlation to sales.

Retailers’ Perception of Co Op Advertising:Retailers Perception of Co-Op Advertising:Good Co-Op plans “can make a significant difference not only in which lines [they] handle, but in how aggressively [they] will promote them.”




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Prospecting and ResearchCo-Op Advertising Downsides

Retailers’ Negative Perception of Co-Op Advertising:Some retailers avoid using Co-Op programs because they don't know how to secure the dollars; or using them is too complicatedknow how to secure the dollars; or using them is too complicated.Many retailers don’t have time to research amounts available for co-op.Filing for reimbursement can be cumbersome. Many manufacturers don’t reimburse cash, but use an “off-invoice” reimbursement. This means the retailer gets money off their next invoice instead of cash. They don’t feel they have enough money to do anything significantThey don t feel they have enough money to do anything significant.

OPPORTUNITY: This negative perception creates an opportunity for media sellers to change retailers’ view.

Prospecting and ResearchSize of Co-Op Opportunity

$50 billion of Co-Op advertising is available every yearyear

over 4,000 Co-Op programsabout 1,000 of which will pay 100% of advertising costs.

Roughly 50-60% goes unused because of lack of initiative by retailers.




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Prospecting and ResearchWhat Industries Use Co-Op?

Apparel, Shoes & AccessoriesElectronics, Computers

■ Sporting Goods■ Home Improvement & GardenElectronics, Computers

AppliancesAutomotive Aftermarket

Parts & ServiceOil & LubricantsAftermarket Accessories

Food and BeveragePet Food & Supplies

pBuilding MaterialsFlooringHeating & Air ConditionerLawn & Garden EquipmentConstruction Equipment

■ Utility Companies■ Telecom/WirelessPet Food & Supplies

Health & Personal CareEye Care, Hair Care, Pharmacy

Music & Video

■ Authorized Agents & Dealers■ Motorcycles■ Watercraft




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Prospecting and ResearchMaking it Easier to Get Co-Op

Many companies are simplifying the process to use acrrued funds

A number of firms and distributors help their dealers track Co-OpA number of firms and distributors help their dealers track Co Op accruals by sending monthly statements of their activity.Some manufacturers now allow tracking online (track accruals, track ads, claim Co-Op funds and customize ad materials)

Some Co-Op agencies that audit Co-Op ads and offer Web-based Co-Op systems:

Advertising Checking BureauAdvertising Audit Services

COAMS Inc.Co OptimumAdvertising Audit Services

Archer MalmoBridgepoint

Co-OptimumShared Marketing ServicesTrade One Marketing

Prospecting & ResearchDealer Group Overview

Dealer Group:An association of dealers who pool their Co-Op fundsfunds.

Co-Op funds combine with a retailer’s accruals from various manufacturers or dealers to fund a schedule or finance a market-wide campaign.

Major Dealer Groups typically receive subsidies for a portion of their advertising expenses from their supplierssuppliers.Some manufacturers assist Dealer Groups by providing market research to develop their own advertising.




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Prospecting & ResearchDealer Group Overview

Major Dealer Groups’ marketing efforts are often conducted over numerous forms of media including television cable newspaper direct mail billboards andtelevision, cable, newspaper, direct mail, billboards and the Internet. The individual dealers in the Dealer Group save money through volume discounts and other media concessions.

Some larger Dealer Groups hire individuals dedicated to promotion of the group’s image and coordination ofto promotion of the group’s image and coordination of group promotions.

MANUFACTURER

Prospecting and ResearchHorizontal Co-Op

RETAILER RETAILER RETAILER RETAILER

Advantages: Uncovers accruals – small to large dealers Opens up regular retail leads. Increased credibility with retailers when you walk in with the manufacturer’s rep E bl t th l t f dEnables you to gather larger amounts of unused co-op.

Disadvantages:Service takes time. Collections can be a hassles if not billed correctly Bad manufacturer rep can stall or ruin a good project.




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A successful Dealer Group will try to accomplish these Marketing Goals:

Prospecting & ResearchRole of the Media Sales Rep

Unifying dealersUse Co-Op funding efficiently to benefit allBuilding and driving traffic to retail dealer locationsCreating a strong product messageIncreasing salesTi i t ti l i l l l l (if li bl )Tie in to national campaigns on a local level (if applicable)Pooling dollars to have more buying power

Media sales reps must consider the following issues when developing a Dealer Group.

D l i lifi d l d t d l l ti

Prospecting & ResearchRole of the Media Sales Rep

Developing qualified leads to dealer locations.Unqualified leads can ruin a program for a dealer and squash the chance for a renewal. Put systems in place to help dealers track qualified leads.

Creating internal and external incentives. Are there layers of the program you can add to incentivize the dealers to participate? Are their extra incentives you can offer to consumer?

Getting dealers to use Co-Op to sell a product.




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When organizing a Dealer Group, there are many Key Customers to consider:

Prospecting & ResearchRole of Media Sales Rep

Consumers Manufacturers Distributors (if applicable) Individual Dealers

Don’t overlook opportunities for additional co-opD l C f h d t lDealers accrue Co-op from sources such as product sales, service and maintenance contracts, financing

Manufacturer

Prospecting & ResearchSupply Chain Dealer Group

Dealer Groups/Co-Op

Wholesaler/ Distributors

Consumer

Retailers




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Prospecting & ResearchFinding Dealer Groups

Determine if there are enough dealers in your area.Search for dealers of qualified manufacturers in your area by going to manufacturer’s website or by contactingarea by going to manufacturer s website or by contacting the manufacturer’s Regional Sales Manager.

Your local phone book will list dealers and distributors under the category you are pursuing (e.g., Windows, Paint) If a distributor is not listed, contact a local dealer and ask from whom they buy the majority of that brand.

Locate three to five local/independent dealers. Some Regional Sales Managers may direct you to as many asRegional Sales Managers may direct you to as many as 30 dealers.

Don’t include national chains as they usually fall under another decision-maker.

Find the dealer’s

corporate or division site. Click

on the “Dealer

Locator” or “Find a

Dealer”Dealer link…




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Prospecting and ResearchFinding Dealer Groups

On the Dealer

Locator page, you

can type in the specific ZIP code in which you

want to find a dealer…a dealer…

…The results

page will show a list

of all the dealers in your area

– like these in

the Bostonthe Boston area.




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Dealer Group TrainingLandscaping

LandscapingFinding Dealer Groups

Focusing on the Horizontal Co-Op: Step One: Select a “big name” manufacturer or distributorStep One: Select a big-name manufacturer or distributor in a target Co-Op category.Step Two: Call the company’s corporate office. Instead of asking for the Co-Op department, ask for the assistant to the VP of Sales. Step Three: Ask for the name and number of the Regional Sales Manager or Area Manager for your market. This will g g ybe your primary contact for the dealer group. He or she should have access to all their retail accounts and should be financially rewarded for moving more product in your market.




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LandscapingFinding Dealer Groups

Step Four: Ask the assistant to the VP of Sales the following questions to qualify the dealer group.

Is your product sold direct or through a distributor?Is your product sold direct or through a distributor? If the product is sold direct, the decision maker is the Regional Sales Manager. Get his/her name and number. This person can be instrumental in working with the distributors.

Do your distributors have exclusive territories?Who is/are your distributor(s) in _________________?Do you know the owner’s name? Sales Manager’s name?Size of their territory? (You may have to call the distributor)Can your distributors carry competing lines?Is there any new line extensions on products being launched that I should talk to the distributor about?How do you handle e-retailing of your products?

LandscapingDealer Group Decision Makers

Distributor or Manufacturer Co-Op Manager

Usually not a decision maker but often has all the details of the planUsually not a decision maker, but often has all the details of the plan and can point you to the right sales contact.

Regional Sales ManagerWireless: Indirect Marketing Manager, Regional Manager Indirect Channel District Manager

Retailer/DealerMarketing Director or Marketing ManagerSales ManagerStore ManagerOwner




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Vice President of SalesNational Sales Manager

LandscapingKnow The Flow

National Sales Manager

Regional Sales Manager Regional Sales Manager Regional Sales Manager

DistributorOwner

Sales Manager

Sales RepSales Rep

Dealer

Vice President of SalesNational Sales Manager

LandscapingKnow The Flow

National Sales Manager

Regional Sales Manager Regional Sales Manager Regional Sales Manager

Sales Rep

Dealer




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Henio ArcangeliPresident

Motorsports Group714-761-7300

Yamaha Motor Corp. Landscape

Bob StarrGeneral Manager

National Communications714-761-7618

Mike AkanoNational Sales Manager

Motorsports GroupSteve Nessl

Marketing Manager

Mike MartinezGeneral Manager

ATV & Side-by-Side Operations714-761-7300

David DoctorNational Marketing Manager


Kim KnuppNational Events Manager


Jason DavisNational Advertising

Manager

Dave ByerInternet Advertising

Manager

Dennis McNealVP of Motorsports; GMMotorcycle Operations

714-761-7368; Admin: Eva

Motorsports Group714-761-7300; Asst. Diane

Marketing ManagerATV/SxS

714-761-7418

Lori NarathCo-Op Advertising

Manager714-229-7999

Manager714-761-7428

Manager714-761-7340

Yamaha Motor Corp Regional Operations

Dennis McNealVP; General Manager

Motorsports Group714-761-7368; Asst. Eva

Kevin SpitlerRegional Business

Manager, Mid-South770-420-5700

Steve LiberatoreRegional Business

Manager, Southeast770-420-5700

Kevin DecewRegional Business

Manager, Mid-Atlantic610-941-9080

Rob PowersRegional Business

Manager, Great Lakes262-947-6000

Tony LeFeverRegional Business

Manager, Northeast610-941-9080



Chris BrunoDistrict Manager

Atlanta Dealer Group770-330-0896

Eric MillerDistrict & Marketing

Manager, Mid-Atlantic610-941-9080




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Yamaha Motor Corp.Regional Operations Cont…

Dennis McNealVP; General Manager

Motorsports Group714-761-7368; Asst. Eva

Rocky AielloRegional Business

Manager, West714 761 7577

Ray KlynotRegional BusinessManager, Central

972 262 4489

Kevin TheisenRegional BusinessManager, Midwest

262 947 6191

Mike DoughtyRegional Business

Manager, Southwest972 262 2116



Bob RhineDistrict Manager

TX817-447-4581

Richard McKimDistrict ManagerAZ & S. Nevada

714-944-0759

714-761-7577 972-262-4489

Jesse HendersenRegional MarketingManager, Midwest

262-947-6100

262-947-6191 972-262-2116

Dealer Group TrainingDialing For Dollars




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Regional Sales ManagerIntroduce yourself and confirm the decision makers title

Dialing For DollarsSample Script

Introduce yourself and confirm the decision makers title.

Hi, my name is ___(Name)___. I am calling from _____(Company)_____. I understand you are the _____(Title)_____ for ____(Product)____. My company can help you generate incremental sales by designing local promotions to generate leads and increase traffic to your dealers. We also have presence marketing opportunities that offer sponsorship and sampling at community venues and events, which allows you to reach your target consumer in a more relaxed setting.

If you are looking to increase sales, market share or brand awareness we may be able to help. I have a few ideas in mind but would first like to ask you some questions that will help me to learn more about your specific objectives.

Dialing For DollarsFive Key Questions

1. Products/Services

2. Key Partners

3. Customer

4. Timing

5. Budget5. Budget




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Dialing For Dollars Anticipate and Overcome Objections

“I'm too busy to bother with all that paperwork.”My station will take care of all the necessary paperwork. We will submit the Co-Op claims to the proper auditing bureau obtainsubmit the Co-Op claims to the proper auditing bureau, obtain copy approval from the manufacturer, and send all participating retailers a memo bill for their portion of the schedule.

“We've tried it before and it didn't do us any good.”My station has conducted numerous Co-Op dealer group programs in the past, all of which have given retailers like yours more exposure and increased sales. We will take care of all details

d l thi t h I'll k i f d th tiand leave nothing to chance. I'll keep you informed on the times when your spots will run and make sure the schedules run as promised. Knowing what ran when will let you track your sales trends and results over the run of your Co-Op advertising schedule.

Dialing For Dollars Anticipate and Overcome Objections

“I’ve tried it before and never was reimbursed.”Perhaps the claim was sent in too late or the copy was not acceptable However our station gets the copy and the programacceptable. However, our station gets the copy and the program approved in advance by the manufacturer. We make certain to submit the Co-Op claims for each retailer on time, so there shouldn't by any problems. I will personally follow-up and make sure reimbursement is timely and accurate.

“I don't like using the pre-approved Co-Op copy. It's all about the manufacturer and I just get a tag at the end.”It's true that one of the most common reasons retailers do not getIt s true that one of the most common reasons retailers do not get involved in dealer-group programs is because the advertisements focus on manufacturer's copy and dealers are tagged at the end. However, we make every attempt to provide each dealer with his/her own commercial while making sure to include the specific manufacturer requirements needed for copy approval.




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Dialing For DollarsAnticipate and Overcome Objections

“The bigger retailers get more Co-Op dollars, thus more commercials and more business.”That might be true if we were selling each individual retailer a stand-alone schedule. Since this a dealer-group program, the individual schedules will run concurrently and the increased reach and frequency from the group effort makes each member's investment cost-effective.

“We already use our Co-Op for newspaper/direct mail.”Radio offers you value-added promotions that enhance your

t d ti i Y ill b th R dipresent advertising. Your company name will be on the Radio repeatedly with special promotional tie-ins that complement your newspaper ads. Using a broadcast schedule to support a direct mail campaign will increase the public's awareness of your campaign and your product(s).

Dialing For DollarsAvoid Co-Op Mistakes

Avoid some of the common mistakes associated with Co-Op advertising with Dealer Groups.Mistake #1 Over PromisingMistake #1 - Over Promising

Never promise what you may not be able to deliver. Veteran retailers and manufacturers will see through big empty promises quickly, and will result in a quick goodbye.

Mistake #2 - Investigating Co-Op without ApprovalNever investigate Co-Op without the business owner's approval. To conduct a successful Co-Op search, you need very privileged information about the business including account numbers andinformation about the business, including account numbers and reps' names and phone numbers. Often these reps and/or companies will reply directly to the store with Co-Op information. You want the store owner to accept the information and pass it on to you. You could lose a client forever if you bypass getting their approval.




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Mistake #3 – Disregarding Co-Op Copy RulesIt's always a good idea to obtain prior approval for locally written copy. This is a guarantee for you and for your client that all Co-Op copy. This is a guarantee for you and for your client that all Co Op requirements are being met and that Co-Op reimbursement will go smoothly. Script approval is an excellent service you should offer to your clients.

Use copy supplied by manufacturer or get custom copy pre-approved.

Mistake #4 – Missing Out on More Co-Op FundsA business that uses Co-Op now is a prime target for more Co-OpA business that uses Co Op now is a prime target for more Co Op use in the future. You have a captive audience to discuss more Co-Op opportunities. Do a Co-Op search for 10 or 15 of the store's highest sales volume products. It's a pretty sure bet; the more available Co-Op dollars you find, the more your customer will spend with you!


Mistake #5 – Failure to Follow Up ALWAYS FOLLOW-UP! If Co-Op claims are not submitted for processing the Co-Op reimbursements won't be received by theprocessing, the Co Op reimbursements won t be received by the dealer. Offer to submit the Co-Op claims for your clients. Most retailers will welcome your offer to help with the Co-Op paperwork. It's just another client service from you that makes you an outstanding salesperson.

Mistake #6 – Failure to Dig Deeper when Searching for Co-Op

When checking for available Co-Op funds, do not rely on research k t t t th d/ th f t di tlsources; make sure to contact the rep and/or the manufacturer directly

and ask about their Co-Op plan. Your retail client can supply you with the name and number.

Many companies do not have published Co-Op programs, but are willing to try one on a case-by-case basis if asked. Some also are very generous when it's requested, often offering special funds or merchandise for prizes.




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Create a Dealer Group Incentive“Dealer Night” – invite all the dealers to a luxury box at a sports game. Give them tickets to the game for internal use.

Dialing For DollarsIdea Starters

g G g“Dealer Appreciation Party.” Manufacturers invite retailers/ dealers who meet a certain purchase level to a “Dealer Appreciation Party” at a local restaurant, billiards hall, go-cart racing or sporting event.

Offer to use several mediaEach dealer will receive 20 :60 spots; total package for six dealers is 120 :60 spots. Spots can either be tags or 30/30s.Station will put each dealer location on a separate page on theStation will put each dealer location on a separate page on the station’s Web site – including phone numbers & maps.Dealers have the option of voicing their own commercials. Station will write the copy and produce tags with approval.Launch a separate Direct Mail campaign.

Dealer Group / Co-Op Resources




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Glossary

30/30, Piggyback or Tagged Commercials: Commercials used by manufacturers as leverage to get increased sales activity. The front 30 seconds of a 30/30 is used to promote the product and the back 30 seconds is provided to the retailerthe back 30 seconds is provided to the retailer.Account Specific: A product/promotion sold to one store.Accrual: Percentage of sales of a manufacturer’s goods a retailer can apply toward advertising (usually 2%, 3%, 4%). A retailer accrues funds based on total purchases of a manufacturers product (e.g., $100,000 in purchases equals $4,000 in Co-Op advertising with a 4% accrual)Accrual Period: Retailer accrues Co-Op advertising funds on his/her purchases during a specific period of time set by the manufacturer.Allowance: Share of Co-Op advertising paid by manufacturer.

GlossaryANA/RAB Tear Sheet: Radio Co-Op documentation system combining script with affidavit.Buy-In: The procedure whereby a retailer is required to buy a

d t t i t t ti i t i C Onew product or a certain amount to participate in a Co-Op schedule. Usually paid 100% by the manufacturer.Claim: The process and form used by the retailer to get reimbursement for advertising expenditures. (Sometimes known as the “proof of performance”.)Claim Period: The period of time after the advertising has run and before any deadline date in which claims can be filed, usually 30-60 days after advertising schedule.Copy Requirements: Guidelines set up by the manufacturer that must be followed in order for Co-Op claim to be paid. A sometimes manufacturer supplies copy which is required for reimbursement.




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Glossary

Co-Op Period: Time period during which retailer purchases accrue Co-Op funds.Expiration Date: The deadline by which Co-Op monies must beExpiration Date: The deadline by which Co-Op monies must be used before they expireDealer Support Program: Local ad program where a mfg. selects stations and schedules, and (usually) tags dealers. The manufacturer retains control rather than offering co-op.Graduated Percent Participation: A participation plan based on the number of ads the advertiser runs. For instance, the first ad may be 50% paid the second ad may be 75% paid and the thirdmay be 50% paid, the second ad may be 75% paid, and the third ad may be 100% paid.Manufacturer’s Participation: The share of an advertising claim a manufacturer will pay (usually 50/50, 75/25, 100%)

Glossary

Pass-Through Co-op: Co-Op funds available to the retailer even though he/she purchases from the wholesaler or some other indirect source.Sell-In: The process of the manufacturer selling goods to the retailer.Sell-Through: Process of retailer selling goods to consumer.Trade: What a manufacturer calls his/her retail accounts.Trade Dollar: Money paid by manufacturers to retailers to obtain price features, displays, and other trade-sponsored consumer targeted promotionsconsumer-targeted promotions.




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Dealer Group TrainingSuccess Stories

Success StoryDealer Group

Client: CarrierDM Title: Director of Marketing / Distributor CEODM Title: Director of Marketing / Distributor CEOProgram: “Comfort by Carrier.com”Objective: Get Carrier dealers to support market-wide

promotion with their co-op dollars. Drive 25% lift in appointments for fall.

Description: Radio drives consumers to website to book an appointment with nearest Carrier dealer and receive a $40 pillow from Sleep America

Investment: $120,000 net




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Client: Toro (11 dealers)DM Title: Regional Sales Manager for Distributor & Marketing

Department at ToroDepartment at ToroProgram: Three elements: 1) Commercial schedule 2) Segment

ownership of station’s Local Home & Garden Experts campaign. The Toro Dealers will be the exclusive category experts (lawn equipment dealers) for the experts program online. This is an on-air segment on Saturday morning along with online campaign. 3) Includes an on-air/online “Great Toro Upgrade Most Beautiful Lawn” contest for one resident to win a new Toro riding mowercontest for one resident to win a new Toro riding mower.

Investment: $70,000Results: Toro loved it and may want to extend across all their

dealers.


Client: Polaris DM Title: District Sales ManagerProgram: In store RTW opportunity to drive listeners to locations

f th A th i d F t Cl t O ifor the Authorized Factory Clearance event. On-air promotional announcements and in-store POP, listeners were encouraged to visit their local Polaris dealer to RTW for tickets to the NASCAR Nextel Cup race, meet and greet with Kyle Petty or a pair of suite tickets for the Friday night NASCAR Nextel Cup qualifying. Consumer Incentive: One grand prize winner was randomly selected to win tickets to the Nextel Cup race and a meet and greet with Kyle Petty. Ten secondary prize winners were randomly selected to win a pair of tickets in a suite for the Friday night NASCAR Nextel Cup qualifying.

Investment: $33,500




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Client: Briggs Construction Equipment DM Title: Regional General ManagerProgram: Created a base of high-end race tickets to be used asProgram: Created a base of high-end race tickets to be used as

merchandise for key clients of Briggs. Briggs was positioned into the NASCAR Racing Guide and given an commercial bank based on their investment. Co-op funded program that gave Briggs access to races and quantity of tickets otherwise unavailable as a general consumer. By utilizing their co-op through this program they were able to garner sales incentive items for their internal use On paper internally this is program comesinternal use. On-paper internally this is program comes across as a straight spots. Promotional Elements include: Full-page ad along with recorded :30/:30 promotional messages for the Racing Guide.

Investment: $56,670 (Net: $38,670 spot, $17,000 tickets)

Client: Scott’sDM Title: Regional Sales Manager Program: Four-step program available only at independent


retailers. Promoted via show targeting those interested in gardening and lawn care. Complemented with some units on sister station. This strategic marketing campaign aligned Scott’s with the weekend “Garden Show” hosted by local expert, the weekend Garden Expert. Scott’s Independent Retailers mentioned on Scott’s Lawn Care commercial tags within the Garden Show program during the key lawn cutting and care season. Consumers were also encouraged to log on to the Web for lawn care tips and to see the list of independent retailers that sell the product.

Investment: $13,400




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Client : York IndustriesDM Title: Regional Manager for New JerseyProgram: Party Like A Rock Star


Strategy: A combined on & off air program for York Dealers. Client had done several different programs before including hockey and other sports. He wanted to try something different to incent the dealers during key sales period. Promotion involved an on-air campaign encouraging consumers to call participating dealers for Spring/Fall Service and brand York rebate program. Off-air program created a hospitality event that the York sales team used to spiff their dealers for purchase and push of York brands. Top dealers received tickets to Classic Rock Show and private VIP hospitality party before the event.

Investment: $55,000 Net Investment: $45,000

Success Story Dealer Group

Client: Amana HVACDM Titles: Zone Sales Manager and Territory Sales ManagersProgram: Used Amana accrual dollars to fund the program. Four-Program: Used Amana accrual dollars to fund the program. Four

week program consisted of on-line campaign (e-blast and Web presence). Elements: $100 gas cards to encourage consumers to contact a participating dealer for service; dealer incentive (Richard Petty Driving Experience) to hit predetermined goals related to Amana products’ sales; on-air campaign informing listeners about HVAC care and encouraging them to visit Web site for location of nearest participatingvisit Web site for location of nearest participating dealer.

Investment: $20,000 Hard Cost: $5,000




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Prepare your Lead List.Determine who the Decision Maker is and how the product is sold

Review & Next Steps

product is sold.Ask questions before moving forward.Ensure Decision Maker’s support and help in selling the campaign.Include incentives for Dealer participation.Create qualified leads for Dealers.Discuss billing (through the Distributor or Manufacturer whenever possible).Recap to the Client

Morrison and AbrahamProducts and Services

Consulting ServicesKnowledge-Based SellingFAST Sales Management ™

University Client Services, in-house supportTelecoaching, phone support Client Website, client exclusive accessWebinars web based trainingsWebinars, web-based trainingsSellers Source, a weekly source for sales leadsTrends Tracker, a monthly publication.




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Qualified Leadsa weekly lead service that provides at least 40 new leads every week that focus on and detail prospective advertisers

Sellers Source (delivered via email)

every week that focus on and detail prospective advertisers.

New Revenue proven to generate new revenue for our current clients. The leads include enough information to get sales people on the phone right away.

Time Saver let us do the work for you, we search and read numerous newspapers and magazines, so you and your team can focus on Sales. Morrison and Abraham will send all

participants a complimentary issue of Sellers Source & Trends Tracker




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Contact Us

Susan Novicki President Morrison and AbrahamMorrison and Abraham

781-721-5160781-721-6153 (Fax)617-571-5002 (mobile)781-986-2100 (corporate office)

snovicki@morrisonandabraham [email protected]

www.morrisonandabraham.com

Questions?

Thank You!




Copyright, 2009

Introduction to NTR & D l GDealer Group

• Presented by• Susan Novicki• President• Morrison and Abraham

Brandeis HallVP/TrainingRadio Advertising Bureau

RAB Member Response

800-232-3131

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