Download Full Presentation: Sales Strategies for a Down Economy

Sales Strategies for a
Down Economy
Presented by: Jim Taszarek
Sessions Will Cover
• Environment
• How do we respond
• Framework for action
• Ten ideas
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Activity
Packaging
Proposals
New initiatives
Morale boosters
Economy May Face
Prolonged Pain,
History Suggests
[ WSJ, May 5, 2008 ]
Grows at 1%,
Home Sales Increase
Economy
[ WSJ, June 27, 2008 ]
Dow Reaches
Bear Territory
[ Bloomberg, July 2, 2008 ]
U.S. Advertising
Spending is Flat
in First Quarter 2008
+0.5%
[ Nielsen Monitor Plus, June 26, 2008 ]
Commercial Radio
Revenue
• Jan -6%
• Feb -2%
• Mar -8%
• Apr -2%
• May -8%
[ Source: RAB, Miller, Kaplan, Arase, & Co. ]
What are you seeing in your market?
insanity
insanity:
doing the same thing
over and over again
and expecting
different results
•Accept
•Commit
•Plan
•Act
•Play
The Plan – A 60 Day Sprint
• One Page
• Commitment
• Activity
• Offer
• Proposals
• Rewards
If we are doing MORE ACTIVITY with a
GREAT OFFER, communicating with
EFFECTIVE PROPOSALS and
HAVING FUN... hard to believe we
can’t change the result compared
to not doing anything at all
#1 ACTIVITY MATH
Too much time on small accounts
Account
Spending
# of
Accnts
% of
Total
Revenue
% of
Revenue
$20,000 or more
16
5%
519,386
31%
$10,000-$19,999
30
10%
405,533
25%
$5,000-$9,999
44
14%
316,706
19%
$2,000-$4,999
84
27%
284,279
17%
less than $2,000
132
43%
123,235
7%
Large Accounts Stick Better
Account’s Annual
Spending Level
Attrition
Rate
$20,000 or more
20%
$10,000-$19,999
28%
$5,000-$9,999
32%
$2,000-$4,999
32%
less than $2,000
58%
Top Categories
• Education
• Performing Arts/Museums
• Healthcare/Medical
Next Four Categories
Station 1
Station 2
Station 3
Station 4
1
Tax / Legal
Banks /
Financial
Social
Services
Law Firm
2
Banks /
Financial
Home
Remodel
Govt.
Bank /
Financial
3
Utilities
Restaurant
Legal
Restaurant
4
Grocery
Real Estate
Bank /
Financial
Govt.
MOM
= Average Monthly
Spending
# Accounts
$ Monthly Billing
MOM Tells Us What…
• We’re already comfortable with
• The market thinks we’re worth
• We think we’re worth
Weekly Activity
• Appointments
• Proposals
• If the market is down 8% then increase
activity by 20%
• Set personal goals and mgr. hold to
them
Activity Math
• Reduce time on small accounts
• Larger accounts increase retention
• Target accounts in top categories
• Recommend schedules that increase
MOM
• Present more proposals every week
#2 RECESSION TALK
A Must Read
Advertising in a Recession
by Bernard Ryan Jr.
American Association of
Advertising Agencies
Website: aaaa.org
4 Download PDF, Price $45
American Business Press Study
[ Source: Advertising in a Recession, Bernard Ryan Jr., AAAA, 1999 ]
American Business Press Study
[ Source: Advertising in a Recession, Bernard Ryan Jr., AAAA, 1999 ]
McGraw-Hill Study
[ Source: Advertising in a Recession, Bernard Ryan Jr., AAAA, 1999 ]
Center for Research and Development Study
Changes in ROI Related to Changes in
Ad Spending During a Recession
Spending
ROI Change
Decreased
-1.6%
Modest Increase < 20%
-1.7%
Substantial Increase 20-100%
-2.7%
Average Change
-1.9%
[ Source: Advertising in a Recession, Bernard Ryan Jr., AAAA, 1999 ]
Procter & Gamble
When the president of Procter &
Gamble was asked his opinion about
the reduced rates for ads for the 2002
Super Bowl, he said the company was
taking advantage of the lower prices to
do more advertising – with the goal of
increasing market share.
[ Marketing in Tough Times, John Kypriotakis ]
Kmart
“There is no doubt we made a mistake
by cutting to much advertising too fast.
Clearly we’ve learned where the
threshold of pain is in advertising.”
Chuck Conway, CEO Kmart
[ Marketing in Tough Times, John Kypriotakis
Business 2.0, February 2002 ]
Summary of Studies
If continue to spend same level or more:
• Sales and net income higher
• Higher sales growth
• Increase market share
• ROI similar to if you had cut expense
For Reference
Kirk Nelson’s article Sales In A Down Economy
• www.deiworksite.org
• Click resources for member stations
• Click underwriting sales & mngt.
• Click articles & reports
• Search the word “recession” in this section
#3 UNDERWRITING MEMBERSHIP
MARKETING PROGRAM
Underwriting-Membership
Marketing Program
Corey Lewis
WBUR, Boston
#4 PROPOSAL SHARING
INITIATIVE
Description
• Everyone submits one client focused
proposal each week
• Purpose
– Improve proposals
– Update database of proposals
• Make it fun with incentives
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Most clever, best idea
Best cut and paste proposal
Best renewal proposal
Best use of research
Examples
• Camelback VW Subaru Proposal
– Halo effect
– Authority
– Cut and pasted for over $150,000
• Blue River Interactive Group
– Creative
– Logical
Social Proof
Financial advisors using public radio to reach their target audience
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Fidelity Investments WBUR, Boston
UBS WBEZ, Chicago
Vanguard WBEZ, Chicago
Estate Planning Council of Seattle KUOW, Seattle
Compass Bank Private Client Services KUHF, Houston
Frost Financial Management KUHF, Houston
Johnson Investments WVXU, Cincinnati
Meyer Capital Management WVXU, Cincinnati
RW Baird (starts August), WVXU, Cincinnati
Alpha Investment Management WVXU, Cincinnati
Bartlett & Company WVXU, Cincinnati
Legacy Capital Management Capital Public Radio, Sacramento
Cumberland Consulting Group, WPLN, Nashville
Independence Trust Company, WPLN, Nashville
Mastrapasqua Asset Management, WPLN, Nashville
Robert W. Baird, WPLN, Nashville
Wausau Signature Agency, WPLN, Nashville
First Tennessee Bank Wealth Management, WPLN, Nashville
Authority
“We steer professional services and high end
retail clients to public radio. We find that we
reach business leaders, visionaries, decision
makers, people that have a lot on their mind
and don’t need radio to be noise. For the investment
you get twice the value. You’re getting exposure and
you’re endorsing a positive part of our community
and you’re giving back to the community.”
Evette White
CEO, White, Thompson, Cunningham and Regen
Authority
NPR Halo Effect works for
Camelback VW Subaru
Presence: Basic linkage with KJZZ / KBAQ
through consistent on-air messages, written
in the elegant manner listeners expect
Affirmation: Emphasizes support for public
radio vs. product information, as
demonstrated by pledge drives, donor
support
Integration: Shows in-line support with
stations’ core values – some Camelback
VW Subaru messages highlight your
community activities; you also support
special station events.
[ Source: Jacobs Media, 2007 ]
7 Questions for Proposals
1.
Does your proposal demonstrate that you
understand the wants & needs of your
prospect?
2.
Does your proposal offer a conclusion that will
enable the prospect to make a “yes” decision
at the end of your presentation?
3.
Is the presentation crafted in such a way that
it addresses the buyer’s behavioral (DISC)
needs?
7 Questions for Proposals
4.
Have you incorporated some of the Laws of
Influence to enhance buyer motivation?
5.
Is there a specific scheduling
recommendation based on the prospects
wants, needs & budget requirements?
6.
Is there a customized sample copy based on
the prospects specific business needs that
promotes the Halo Effect?
7.
If the proposal is passed around, will others
understand the presentations relative value
without the aid of a presenter?
Proposal Sharing Results
Totals
Average
High
Revenue
$160,301
$243,970
Proposals Submitted
33
38
Proposals Closed
13
17
% Closed
40%
45%
Avg. Order Revenue
$11,874
$20,331
#5 OUT OF THE OFFICE
AND INTO THE SANDBOX
Surprise them on a hot day
Surprise them on a hot day
KUHF Underwriter Luncheon
Throw a Party
#6 INVENTORY /
PACKAGING
Supply & Demand
The theory of supply and demand
describes how prices vary as a result of a
balance between product availability at
each price (supply) and the desires of
those with purchasing power at each
price (demand).
---Alfred Marshall
Supply & Demand on Radio
• Don’t let inventory go unsold
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Watch your price-points
Package everything
Use inventory drivers effectively
Create seasonal packages
Know your pacing benchmarks
• % sellout next week, next month, two months
• Don’t oversell it
– If you are sold out you can’t sell
New Economy: Two Plans
Maximum Audience Plan
• Greatest available discount
–
Easiest to sell and buy
• Turnover (50% reach, one + times)
–
Not too much frequency
• Promotes inventory spread
–
Mon-Sun, 5am-12 midnight
• Marketing value
–
Great starting point
Special Offerings
Rate
Segment
Disc
Pkg
Credits
Card
55%
Rate
Rate
Total
Mon-Fri, 5a-10a
4
250
138
113
115
460
Mon-Fri, 10a-3p
4
75
41
34
35
140
Mon-Fri, 3p-7p
4
150
83
68
70
280
Mon-Fri, 8p-12mid
4
25
14
11
10
40
Weekends, 6a-7p
3
158
87
71
70
210
Weekends, 7p12Mid
1
25
14
11
10
10
Totals
20
683
310
1,140
Disc
-55%
Critical Questions
• Are you packaging all your inventory?
• Are you presenting the best possible
schedule for underwriters?
• Create a plan to maximize your
inventory
– If you miss your budget but your total
inventory is 98% sellout, good for you!
#7 CATEGORY INITIATIVE
Maximize
• Arts
• Education
• Medical
Develop
• Law Firms
• Banks
• Financial Advisors/Wealth Mgt.
• Government/Public Utilities
• Community Service Organizations
Arts Category Initiative
• Meet with them to understand needs
• Learn their business
• Develop new ideas for them
• Communicate our value effectively
Learn their business
Newsletters & Forums
• wolfbrown.com
• artsjournal.com
Suggested Books
• A Whole New Mind by Daniel Pink
• Engaging Art: The Next Great
Transformation of America’s Cultural
Life by Steven Tepper & Bill Ivey
• Who’s Your City by Richard Florida
• Arts, Inc. by Bill Ivey
Core Audience: Share of Wallet
• the amount of their customers’ total
spending that they are capturing in
the categories they offer.
• Proposal Examples in the workbook
– Nashville Ballet
– Phoenix Art Museum
New Audience
• Phoenix Art Museum’s attendance goal for
the Monet exhibit is 70,000 people
• KJZZ/KBAQ reach over 250,000 different
listeners each week
• KJZZ/KBAQ listeners are 298% more likely to
visit an art museum than the general
population of U.S. Adults.
[ Source: Simmons NPR Profile ’98 ]
New Audience
Make new connections through Nashville Public Radio
and reach a new audience by using a varied
marketing tactic.
• Heavily promote familiar, theatrical operas
• Use weekends to maximize reach
• Buy specific programs that appeal to a younger
demographic (aged 18-34) “Live In Studio C”
• Reach a younger audience on WPLN.org
Public Radio – Direct Response
75% of NPR listeners have attended a
performance or cultural event in direct
response to hearing a sponsor's
message on public radio.
[ Source: NPR & Jacobs Media, 2007; Phone survey conducted by
Edison Media Research ]
Arts Communication
Arts – Solid Solutions
• Audience responds
• More business from core audience
• Grow the size of their audience
Banking Category Initiative
• Recession talk
• Share of voice
Share of Voice
Share of voice is your percentage of all of the
marketing done in your business category within the
market or chosen medium. Establishing a dominant
share of voice achieves numerous significant
marketing goals:
• Creates familiarity, understanding and ultimately
trust with audience
• Establishes top-of-mind status among listeners,
consumers
• Discourages competitors from entering medium
Smith Bank Share of Voice
First Bank
Bank
Bank
Leader on both stations – combined 84 percent share of voice
Dominant banking underwriter on KJZZ – 72 percent share of voice
Only banking underwriter on KBAQ – 100 percent share of voice
Financial Advisors/Wealth Mgt.
• Recession Talk – Esther proposal
• Share of voice – Same as banks
• Social proof other markets
• Agency quote from Nashville
Recession Talk
Since 1993 Mastrapasqua has been dedicated
to growing long-term capital for clients--building relationships to build wealth. In
contrast, the US and world financial markets
have negatively affected public perception
about the stability of economic growth, leaving
investors uncertain. Mastrapasqua’s disciplined
and strategy approach to investing shifts public
perception and helps investors see beyond the
hype.
Smith Bank Share of Voice
First Bank
Bank
Bank
Leader on both stations – combined 84 percent share of voice
Dominant banking underwriter on KJZZ – 72 percent share of voice
Only banking underwriter on KBAQ – 100 percent share of voice
Social Proof
Financial advisors using public radio to reach their target audience
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Fidelity Investments WBUR, Boston
UBS WBEZ, Chicago
Vanguard WBEZ, Chicago
Estate Planning Council of Seattle KUOW, Seattle
Compass Bank Private Client Services KUHF, Houston
Frost Financial Management KUHF, Houston
Johnson Investments WVXU, Cincinnati
Meyer Capital Management WVXU, Cincinnati
RW Baird (starts August), WVXU, Cincinnati
Alpha Investment Management WVXU, Cincinnati
Bartlett & Company WVXU, Cincinnati
Legacy Capital Management Capital Public Radio, Sacramento
Cumberland Consulting Group, WPLN, Nashville
Independence Trust Company, WPLN, Nashville
Mastrapasqua Asset Management, WPLN, Nashville
Robert W. Baird, WPLN, Nashville
Wausau Signature Agency, WPLN, Nashville
First Tennessee Bank Wealth Management, WPLN, Nashville
Authority
“We steer professional services and high end
retail clients to public radio. We find that we
reach business leaders, visionaries, decision
makers, people that have a lot on their mind
and don’t need radio to be noise. For the investment
you get twice the value. You’re getting exposure and
you’re endorsing a positive part of our community
and you’re giving back to the community.”
Evette White
CEO, White, Thompson, Cunningham and Regen
Category Initiative
• Concentration of force
• Maximize best categories
• Develop opportunity categories
#8 KUHF RATE CARD
INCENTIVE TO SPEND MORE
KUHF
Higher Average Spending
• $6,602
• $9,066
• $7,830
• $8,182
• $6,145
#9 SEASONAL PACKAGES
Summer Package
As summertime temperatures increase
in Nashville, demand WPLN decreases
as performing arts organizations – our
largest category - conclude their
seasons. Thus, we offer a hot deal for
underwriters who want to beat the
heat.
Summer Package
• Largest category - performing arts
goes away so lots of inventory
• It allows us to keep pressure on
inventory without reducing rates
on the rate card
• Make deep discount off rate card
• Limit the number available per
week
• Make it fun
Holiday Package
• Dec. 15 – January 15 inventory open
• Offer it to clients as an add-on
• Creates momentum going into January
• Release it to your staff after Thanksgiving
• Offer deep discount
• Make it easy to say yes to
Independent Retailer Package
• Designed for small retailers
• Efficient way to sell smaller
schedules
• They are accustom to
buying packages
• Easy for them to make
quick decision
• Not necessary to do long
proposal for a small
retailer
#10 AGENCY INITIATIVE
Agency Initiative
• Agency lunch at station
– PowerPoint
– Video
– Thank you gift
• Then take your presentation on road
– Food
– PowerPoint
– Video
– Research ideas from other stations to recommend
their clients
– Premiums
• Follow-up e-mail campaign to stay top of mind
#11 HOW RADIO WORKS
[ EXTRA CREDIT ]
How Radio Works
Radio’s Two Dimensions
Frequency Distribution
5 Stages of Communication
Which is More Important?
Reach
or
Frequency
Marketing Factors
• Established v.s. New
• Brand Dominance
• Brand Loyalty
• Purchase Cycle
• Usage Cycle
• Competitive SOV
• Target Group
Creative Factors
• Message Complexity
• Message Uniqueness
• New v.s. Continued Campaign
• Image v.s. Product Sell
• Message Variation
• Wear-Out
Media Factors
• Clutter Level
• Editorial Environment
• Attentiveness
• Continuous v.s. Pulsed
Marketing
• Number of Media Used
• Repeat Exposure Media
?? Questions ??