Notes from Jeff York

Small business marketing thoughts from a marketing small business owner

Posts Tagged ‘bottom line

Moving the needle

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mathteacherAnybody here love math when they were in school?

How about you marketing types? How much do you love math?

I know someone that loves math. Your boss. If you’re charged with marketing tasks, you had better know this is more than just being creative and clever. Your CEO (and your CFO) wants to know what have you done for the bottom line? Did the latest marketing campaign generate more sales? Did the most recent branding effort generate more recognition? If you spent money, you better have made money. Did you move the needle?

When I was Creative Services Director for a couple of television stations, my actions and initatives were constantly questioned (by myself and others) if they satisfied at least one of the three ‘R’s: ratings, recognition, and revenue. If my activity wasn’t geared toward moving the needle in one of those areas, then it wasn’t worth doing. And let’s face it, focusing on ratings and/or recognition is simply an indirect way to build revenue.

If you’re not being held directly accountable for your metrics, then your company is being done a disservice. If that’s the case, you would be wise to start building your own tracking systems. Or else, how are you going to know if new efforts are moving your company in a postive direction?

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Of course you’re important, but…

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8020ruleI’m sure you’ve heard of the 80/20 rule before. It’s been applied to so many things in so many ways. Here’s the context in which I’m exploring it this week.

You will spend 80 percent of your time on 20 percent of your clients.

Some people just need more handholding. Some people need more coaxing. Some people know they need help, but are unsure about getting off the fence and moving forward with a marketing campaign (for example).

I love those people in the same way that I love vegetables.

The bottom line is your bottom line. There are times in which we find ourselves in a place where we might have to pull back on the attention that we’ve been giving a client simply because they’re receiving too much of our resources. In the past, I’ve been with companies that have made the difficult and unfortuante decision to “fire a client.” It’s not a decision that we ever took lightly, but was forced on us if we wanted to be able to continue to grow.

I’d love to hear if you’ve been in this type of situation and had a successful outcome that we can all learn from. Was it simply a function of better educating a client and turning them into one of the better 80 percents or was there another method you used to rectify the situation?

Written by Jeff York

December 1, 2008 at 1:12 am

Now I’m an advertiser. What does that mean?

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This past week, I was talking with a friend whom also happens to own her own business.  Recently, she’s been thinking about putting spots on TV which she’s never done before.  One of the questions she asked me was how will that make her look.  Does being on TV make a business look “desperate?”

This is actually a very viable question and one I’ve never really considered before.  Within her business peers and competitors, she was concerned that this would impact how they would view her.  In her line of business, how she appears among her peers is important.

If she has a commercial created and puts it on the air, what does that say about her business?  What does that say about her?

Advertising means telling as large an audience as possible about you and your business.  It’s a very effective way to establish your brand and to create points of differentiation in the minds of potential customers.  Advertising means that you believe in your business enough to put marketing dollars behind it.  Since no business has 100% market share in their segment, every business can increase sales with smart marketing.

All of that said, the key has to be smart marketing.  It starts with the message.  Is it right for the medium you plan to use?  Does it exactly match the image of your business you want to portray?  If not, then you can actually damage your business by releasing that message into the public.

Let’s say you now have a perfectly crafted mass media message that will cut through the clutter.  The job is only half done.  Next is finding the right medium for delivering the message.  As I stated in my series of posts on the various mediums, there are a wide range of media to use for delivering your message:  television, radio, newspapers, Internet, direct mail, and outdoor.  Deciding which to use requires thought as to what type of audience you want to reach, the message you want to convey, and budget.  Then you have to make sure that your placement within that media works for you as well.  Is your print ad buried in the paper or did you get a good placement?  Did the TV station sell you ROS (run of schedule) and then put your spot in Jerry Springer?  Did the radio station give you first spot in break or bury you in the middle of the break?

It’s vital that you talk with a good media buyer before committing to a media plan.  Speaking with a rep from a media company will only give you the perspective of why you should advertise only on their station.  Once you’ve purchased a plan from them and started to establish yourself as an advertiser, then good reps will start to have an eye out for you on other media…and you better still be buying time/space with them.  Media buying firms have the whole picture in mind and generally can secure better rates than you can on your own.  They make their money from ad agency commissions that media companies give for placing buys with them.  If you place the buy directly, the media company keeps that commission for themselves.

The bottom line is advertising is good for your business.  If your competition is already advertising, then by not doing so you will start to lose market share.  If they are not, then you immediately place yourself above them in the public’s mind and will start to reap the benefits shortly.  You should know that by putting yourself out there as an advertiser, you should expect that other media reps will start to call on you.  It’s wise to find a good media partner (buyer or ad agency) that you are comfortable with and are confident that they have your best intentions in mind.