Notes from Jeff York

Small business marketing thoughts from a marketing small business owner

Posts Tagged ‘spending money

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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Does it have value?

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smartcarChristmas is right around the corner and the economy is still struggling. For all the reasons that we’re all now well aware of, banks and certain manufacturing sectors are on the brink of collapse. With continual bad news bombarding us throughout the 24/7 news cycle, you would think that everyone has cut up their credit cards and stashed all their money into their mattresses.

Yet, dig through doom and gloom stories and read the fine print. People are still spending money. What’s changed is the amount and the rational behind each purchase. What’s the driving force?

Value.

People aren’t spending money on new cars. People are spending money to keep their current cars on the road. People aren’t spending money on new houses. People are spending money on fixing up their current home and making it their castle. People aren’t spending money on vacations. People are spending money on high definition TVs and surround sound systems.

Why? People see value in these types of purchases. Keeping your current car on the road is cheaper in the long run than simply buying a new car when facing a big repair bill. Fixing up your home today makes your home more livable today and more valuable tomorrow. Vacations are nights out on the town are great, but night’s in with a nice TV and a sound system that rivals the theater is cheaper in the long run (really, how much is microwave popcorn?).

But you’re a business owner. How do you take advantage of this shift in thinking?

Simple. How do you project value of your goods and services to the customer? If you’re thinking about packing in your marketing efforts because of the economy causes you to believe that you can’t make money, then you’re examining your marketing efforts from the wrong angle. Talking about how your goods/services are cheaper doesn’t mean value. Today’s consumer is happy to spend more today for something that will perfectly suit their needs and last a long time.

Here’s an example. When gas broke the $4/gallon mark, you might have thought that owning a Smart Car dealership would be like printing money. Here’s a street legal car that drove forever between fill-ups. Once the initial wow-factor wore off, people took a good look at the car. It is an impractical two-seater with just enough room for the driver and his lunch. Consequently, it’s been months since I’ve seen one on the road. No value.

Focus on the value you offer your customers. Play up what’s in it for them. And keep marketing. The pie is smaller. If you want the same amount of income, you have a take a bigger slice of the smaller pie. That means taking from your competition. How do you do that? Smart Marketing.