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Results Driven Marketing in a
Down Economy…
Name
Title
Event
U.S. Postal Service
Today’s Conversation
 The Landscape
 Recession Spending in Action: A Look
Back in History
 Survival Guidelines
 Direct Mail:
The Marketing Workhorse
 Where to Turn
Today’s Economic Landscape
 GDP growth turns
negative
 Job losses
accelerate
 Housing market
stalls
 Families feel the
pressure
 Wages still up due
to low inflation
Source: Economic Snapshot, Center for American Progress, April 2009
Consumer Attitudes
 Economic downturns instill anxiety
 Energy and food prices are on the rise
 Frugality is standard operating procedure
 Pragmatism and escapism are not mutually
exclusive
Consumers are saving more,
spending less!
Source: Tuning Into The Recession Mind-Set, Forbes, February 2008
“Marketers from various industries
are feeling the pinch of
belt-tightening with their budgets.”
Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008
The Marketing Snapshot
 69% are reducing advertising budgets
 63% are reducing production budgets
 63% are being challenged to reduce expenses
and cut costs
 61% eliminating or delaying
new projects
 63% restricting travel
Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008
“In fact, SPENDING MORE during tough times
when competitors may be scaling back is a
good way to STRATEGICALLY BOOST MARKET
SHARE…
Source: Bob Liodice, President and CEO of the ANA
A Look Back in History
The Great Depression
 Many companies benefited from aggressive
marketing
 Consumers looked for better deals
 When spending picked up, loyalty was
established
Source: How Brands Thrived During the Great Depression, Strategic Marketing Concepts, February 2009
Depression Spending in Action
Chart: P&G: New and Improved How A.G. Lafley is Revolutionizing A Bastion Of Corporate Conservatism, Business Week 2003
Depression Spending in Action
Depression Spending in Action
Depression Spending in Action
Survival Guidelines for
Businesses
Examine Your Costs
Make Strategic Cuts
Stay Close to Your Customer
Explore New Opportunities
Think Like a Marketer
Monitor the Competition
If they’re cutting back, it’s the opportunity to
consider increasing your marketing
budget
Avoid Gimmicks
Your customers need
messages that center
on the benefits and
advantages of your
product or service.
Source: Facts On The Value Of Marketing During An Economic Downturn/Recession
Stress Benefits and ROI
What’s In It
For Me
Source: Facts On The Value Of Marketing During An Economic Downturn/Recession
Focus on Metrics
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Test
Know the behavior of your segments
Adjust
Watch spending
Source: Facts On The Value Of Marketing During An Economic Downturn/Recession
Re-examine the Marketing Mix
Source: Facts On The Value Of Marketing During An Economic Downturn/Recession
Use Direct-Response Techniques
Hard-hitting copy and a strong call to action
Source: Facts On The Value Of Marketing During An Economic Downturn/Recession
Direct Mail
The Marketing Workhorse
 PERSONAL
 Use the customer’s name
 Provide relevant information
 55% of customers “look
forward” to receiving their mail
 TARGETED
 Focuses on a specific group
 Strong ROI
 FLEXIBLE
 Choose from a variety of formats
 Include special offers, samples
or coupons
 TANGIBLE/ CREATIVE
 Places your message in their
hands
 Makes an unforgettable
impression
 Your piece can be passed along
Direct Mail
The Marketing Workhorse
 MEASURABLE
 Easy to track the results
 Allows you to adjust mailings based on success
 Calculate price per lead
 GREEN
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Post-consumer content
Consider paper weight
Alternative materials
Chemical-free processes
Experiment with formats
Results Driven Marketing
The Reason
Components
Components
Components
Case Studies
The Challenges
 Generate reservations for opening of 135
luxury guest rooms and offer discount
 Cut spending on mass advertising media
 Attempt to gain market share when sales
are down
 Advertise to promote iconic brands
otherwise risk losing customers
David Rawle
Chairman, Rawle Murphy Advertising,
Marketing, and Public Relations Agency
Wild Dunes
 Challenge:
Launching a luxury product
during a recession
 Solution:
Combine product and
incentive offer using a
multi-channel marketing
campaign
AT&T
 Challenge:
Increase cross-selling among
customers despite high
turnover
 Solution:
Integrated plan led with Direct
Mail kits
John Klemets
Marketing Manager,
Dell Consumer Division
Dell
 Challenge:
Grow market share despite
shrinking budgets and current
economy
 Solution:
Integrated plan with multiple
Direct Mail executions
Jeff Meyer
Sr. VP, Marketing & Sales - Feld
Entertainment
FELD Entertainment
 Challenge:
Continue to advertise to promote iconic
brands otherwise risk losing customers
 Solution:
Direct Mail lead the way for decisionmaking of destinations for events and
inventory
The Results
 In total, 3,000% ROI from the campaign.
Length of stay increased by 10% from
prior years, online revenues increased
by 40%, call-in revenues increased by 20%
 Mailing more next year based on the
positive ROI generated from this year’s
mailing campaign
 Early access to a sale’s event generated a
200% ROI
 Positive RIO is the indicator for each given
market around the country
Summary
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Listen to the market
Invest in your customers
Offer value and demand greater value
Increase communication
Step up your advertising
Make smart decisions
Resources
People
 Postal Customer Councils
 USPS Sales Force
 USPS BSN
Places
 Brains on Fire
 Brand Channel
 Duct Tape Marketing
Things
 Deliver and www.delivermagazine.com
Any Questions??
Thank you for your time!