marketing during a recession: 18 strategies for organizations, business owners and entrepreneurs
DESCRIPTION
18 Recession Marketing Strategies--Time for accountable advertising: Re-examine your current marketing initiatives and assumptionsTRANSCRIPT
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Marketing During a Marketing During a Recession: 18 Recession: 18 Strategies for Strategies for
Organizations, Business Organizations, Business Owners and Owners and
EntrepreneursEntrepreneursMay 18, 2010May 18, 2010
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Recession Marketing RetoolingRecession Marketing RetoolingAnticipating Economic RealityAnticipating Economic Reality
Recession A significant decline in activity spread across the economy, lasting longer than two quarters of negative economic growth as measured by a country's gross domestic product (GDP).
DeflationA fall in the general price level or a contraction of credit and available money.
Inflation Inflation is a rise in the general level of prices of goods and services over time caused by high rates of growth of the money supply. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index.
Stagflation A condition of slow economic growth and relatively high unemployment—accompanied by a rise in prices, or inflation.
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• A McGraw Hill research study of recessionary marketing revealed those that maintained or increased their advertising during a recession posted an average sales growth of 256%
• In the last recession, only 25% of companies increased their marketing. As a result, their average market share growth outpaced other businesses by 2.5 times
• Recession…16-18 months?
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18 Recession Marketing Strategies
Strategy #1Time for accountable advertising: Re-examine your current marketing initiatives and assumptions
Know your: Cost per lead Cost per sale Lifetime value (LTV)
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Is half your advertising wasted?Is half your advertising wasted?
“Half the money I spend on advertising is wasted; the trouble is
I don’t know which half.”
—John Wanamaker, Philadelphia Department Store Founder
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The #1 marketing mistake?
The #1 marketing mistake?
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Image Advertisingvs.
Direct Marketing (DM) =Scientific AdvertisingScientific Advertising
Image Advertisingvs.
Direct Marketing (DM) =Scientific AdvertisingScientific Advertising
• Targeted
• Accountable
• Test (assumptions)
• Looking for future database marketing
(upsell/cross-sell)
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Direct marketing for:Direct marketing for:
• Direct sales • Drive to retail• Drive to web • B2B • Database • Consumer • Lead generation • Local• Fund-raising • National• Membership • International
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Direct marketing using:Direct marketing using:
• Direct mail • Email • Ads • Paid search • Radio • Viral marketing• TV • Websites• Ezines • Banner ads• Mobile
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Strategy #2
Reinventing your positioning and image: Review your Unique Selling Proposition (USP)
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Strategy #3
Reality in advertising: Address marketing evils with preemptive copy
• Recession• Fear of government• Government uncertainty• Information overload• Rising costs• Unemployment
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• Recognize, and if appropriate, address these evils
• Don’t ignore them
• News is your friend
Every marketing effort
Every marketing effort
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Direct response copy mega difference Online Hard copy
o Theme Fear Greed Anger Exclusivity Safety
Strategy #4
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Normal approach
Features
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Benefit approach
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Product: Litigation software
Feature: Sort and tag.
Benefit: You’ll save $2 million a year and reduce staff time for e-discovery by 75%.
Ultimate Benefit: Your litigation team will be more efficient and it will free up the financial and staffing resources you need to run a profitable firm.
Sell benefits not features
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Other copy essentials
• Be specific• Be conversational• “You” oriented• Easy to read• M²• Drama/surprise
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Short Copy Clicks Cost CPC Revenue ROI* Conversion 1,700 $258.62 $0.15 $295.75 -66% 0.18%
Long Copy Clicks Cost CPC Revenue ROI* Conversion 1,440 $218.83 $0.15 $1,092.15 50% 0.69%
*The profit margin used to calculate ROI was 30%
Copy lengthCopy length
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At the end of your copy presentation
Ask yourself. . .
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1. Does it grab my attention right away? 2. Does it recognize recession/pain/fear?3. Do I recognize immediately a good value
proposition?4. Is it written to me and me alone? 5. Do I feel the writer cares about me? 6. Do I feel the writer believes what he is saying? 7. Do I believe the writer? 8. Why should I respond now and not later? 9. Is there an alternative? 10.Do I feel safe/comfortable about ordering?
10 deal killers: critical response
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Strategy #5
• Cost cutting Printing Media costs Lists Postal Media options
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Deals!
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Strategy #6
• Reevaluate your offer – make it preemptive Premiums Guarantee Price/Discount
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PremiumPremium
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Premiums
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Guarantee
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Price________________
Discount
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DiscountDiscount
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Price wordingPrice wording
Test #1—7 days FREE or continue at just $24.95 for 8 weeks at a savings of 50%
Test #2—7 days RISK FREE then continue at just $24.95 for 8 weeks (50% savings)
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Call to action (CTA)Call to action (CTA)
Test #1—Click here for your FREE report
Test #2—Download your FREE report now
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Customer
Strategy #7Concentrate on your database
Customer
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Database marketing
Relationship
marketing
Letters
Emails
Newsletters
Ezines
TelesalesCustomer
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Action Plan
• Upsell • Cross-sell • Loyalty program• Former clients• Database leads• Retention series• Conversion series
Smart marketers will focus on their database…BUT
Do NOT neglect prospecting
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Create a professional Create a professional direct response direct response
conversion seriesconversion series
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Strategy #8Strategy #8
Mobile marketing breakthrough
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Strategy #9Strategy #9
Corporate websites are obsolete
Antimarketing madness: Revise website strategy
Direct marketing microsites and landing pages
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The greatest The greatest loss of orders comes loss of orders comes on the _____________?on the _____________?
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Avoid shopping cart
insanity
Strategy #10Strategy #10
Online lost sales and leads
Streamline your shopping cart
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2 big mistakes2 big mistakes
1. ?2. ?
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Mistake #1Mistake #1
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Tombstone carts
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Mistake #2Mistake #2Multistep process
#1
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#2
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#3
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#4
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#5
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#6
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#7
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#8
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#9
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#10
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Seamless, smart Seamless, smart shopping cartshopping cart
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Strategy #11Strategy #11
Expand globally
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Strategy #12Strategy #12
The rules of email are changing:
Secrets for success
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#1 email #1 email marketing mistakemarketing mistake
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The 3 RsThe 3 Rsof email marketingof email marketing
to prospectsto prospects
1. _______________________
2. _______________________
3. _______________________
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Crisis unfolds: Carter-era inflation on the way
Bailout nightmare: Your wealth is in jeopardy
Free market nightmare: Socialism-style bailout
How to protect yourself and profit in 2010
Email subject lines
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9.630%Crisis unfolds: Carter-era inflation on the way
26.437%Bailout nightmare: Your wealth is in jeopardy
20.854%Free market nightmare: Socialism-style bailout
6.757%How to protect yourself and profit in 2010
Email subject lines
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68% Picture vs. no picture
33% Chart vs. no chart
92% Non-superscript vs. superscript
113% Video vs. no video
Recent TestsRecent Tests
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Strategy #13Strategy #13
The digital video explosion
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Megatrend:Megatrend:Video explosionVideo explosion
• Email• Website• Podcast• Viral marketing
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Web videos: Help or hurt?
Test: Which testimonial format was most effective?
A
. No testimonials
B. Text testimonials
C. Video testimonials
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Fawn’s viral video
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Fawn’s landing
page
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www.barrykaye.com
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Strategy #14
Direct response TV
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Swiss Swiss ConfidentialConfidential
TV Commercial
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Strategy #15
Direct response radio
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Inflation Survival KitRadio Commercial
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Strategy #16Strategy #16
Untapped potential of paid search
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4 keys to success
1. Keyword strategy2. Test headlines/ad
copy
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Test headline 46 ways to raise prices
Headline #1The easiest price increases you’ll ever make or your money back
Headline #2The secrets of making customers happy to pay more
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3. Test separate landing pages
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Which worked best?
(A) Mold Help for Morons
Find out if you have a toxic mold
problem without spending a fortune!
www.StopBlackMoldNow.com(B) Mold Help for Morons
Find out if you have a toxic mold
problem without spending a fortune!
www.GetMoldSolutions.com
4. Test URLs
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Strategy #17
Online ads
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Strategy #18Strategy #18
Back to the future:Direct mail
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Postcard
50,000 pieces
Postcard
• Cost: 45 cents
• .4% response rate
• Cost per lead: $122.50
• 200 leads
Traditional Package
• Cost: 75 cents
• 1.9% response rate
• Cost per lead: $39.47
• 950 leads
* Mailing costs adjusted to 2007-2008 expense levels
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BookalogBookalog
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Postage
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1. Brochure in envelope.………………………….0.5%
2. Self-mailer.………………………………………1.0%
3. Elaborate brochure and short letter in envelope………………………………………3.2%
4. Letter and brochure combination in envelope………………………………………4.0%
5. Brief brochure and long letter in envelope………………………………………7.3%
5-way test5-way test
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Letter
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Letter
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Lift note
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Added - value insert
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Responsedevice
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Mailing List
DR vs. Compiled Matchback!
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Putting It AllTogether
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WARNING!Be sure to integrate your direct mail (other marketing
efforts) with your website
Direct response microsite
Anti-marketing corporate site
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Integrated campaignIntegrated campaign
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Make sure everything you do is accountable
Rework all old materials Concentrate on marketing to your
database Don’t neglect prospecting Use an integrated direct marketing
approach
SummarySummary
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1. Accountable advertising2. Review your USP3. Reality in advertising4. Direct response copy5. Cost cutting6. Reevaluate your offer7. Concentrate on your database8. Mobile marketing9. Revise website strategy10. Streamline your shopping cart11. Expand globally12. Email secrets13. Digital video explosion 14. Direct response TV15. Direct response radio16. Paid search17. Online ads18. Direct mail
18 Strategies18 Strategies
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QuestionsQuestionsIf you have any questions about If you have any questions about
these strategies, please call Craig at these strategies, please call Craig at 310-212-5727310-212-5727
Fill out the handout and give it to Craig