I(Rob) am wrapping up things here in the office, looking forward to a week's vacation next week up north. Looking outside presently, I see it is raining again. It sure has been a very WET month here in Michigan. A few installments ago, in this newsletter, we explored the virtue of umbrella advertising. Those of you that have distributed them surely received great exposure last month!
This month we thought we would take a look at the many opportunities that outdoor related promotions offer. Michigan is a state that has four clearly defined seasons, each one offers many opportunities to market to those people that love being out of doors. Generally speaking, outdoor promotions are non-business related and cater to health, protection, and hobbies.
Let's take a look at just a few appreciated items for health and safety. Lip balms are always welcome and useful items. They are low cost and go along way to building goodwill and brand recognition. Same holds true for sunscreens. Mini first aid kits for taking along on hikes and day outings (or even in the glove compartment of the car... just in case) are always a well received item.
Going into the colder months, a unique item is air activated hand warmers. These are produced by a West Michigan company, Grabber Performance Group, for which we are a distributer. We have used these hand warmers personally for many years at football games, ice fishing, etc., with excellent results (meaning we don't suffer in the least from the cold). This category is relatively new to the promotional advertising industry. What a great item to distribute in our state - the winter wonderland! When they are opened for use, the recipients will surely think of the gift giver with great thanks on a cold day when their hands remain warm! These could be tied to any theme or campaign using 'hot', 'warm' or something along those lines to help carry the campaign's message. Also, any winter outdoor event would be a perfect place to distribute these such as sledding parties, ice fishing derbies, holiday parades...
Camoflage items continue to be an ever popular category. We have helped a local furniture manufacturer with an ongoing employee suggestion program. The company's employees would choose from a wide array of gifts for suggestions that they had submitted and implemented successfully. Guess what? The camo hats and camo cooler bags were always among the highest repeat ordered items in the highly successful program. The recipients would either use the camo items for themselves or obtain them and pass along to friends and relatives. Lots of goodwill and brand exposure was created for the company along with the process and cost improvements they hoped for as a part of their plant-wide idea program.
Oh, the list goes on and on for the many useful items that can be used for outdoor related promotions. When your goal is to build goodwill and brand recognition with employees and consumers, think of useful outdoor promotions as part of your marketing mix. In the meantime, enjoy the last days of Fall and get your snow brushes and windshield ice scrapers ready. Did we mention that they are also great promotional ideas? :)
Saturday, October 31, 2009
Wednesday, October 28, 2009
Cutting Costs Without Cutting Engagement
Employees work for more than money – they work to get training and career development, to make a valuable contribution and because they enjoy contributing to a common vision and making their place of work a better place to be.
Today, businesses everywhere are being asked to do more with less. In this environment, loyal, motivated employees and partners are critical to continued success and profitability. And companies know it: Hay Group’s recent Reward in a Downturn survey in just one of many showing that engagement is the top concern of employers right now.
“The discretionary effort of employees willing to ‘go the extra mile’ is even more critical for surviving the downturn and being positioned to grow once the environment is more favorable,” notes the report. “Similarly, organizations are concerned about retaining their high performers in order to get through the downturn and take full advantage of the upturn when it comes. However, employers can’t afford to pay more on reward.”
And that’s not the only place they’re cutting back. Here are the top five actions companies are taking to reduce costs:
Training & development cuts – 46%
Restructuring/Staff cuts – 42%
Less contract labor – 40%
Cutting bonuses – 38%
Salary freezes – 36%
As you might imagine, budgets for incentive and reward programs are also under scrutiny these days, but there are a lot of ways to foster and maintain engagement that don’t cost a penny. The report rightly notes that employees work for more than money – “they work to get training and career development, to make a valuable contribution and because they enjoy contributing to a common vision and making their place of work a better place to be. Leading organizations understand this and are focusing on improving non-financial aspects of reward.” And concentrating on the non-financial aspects now will put you in a better position to implement more traditional incentive programs once things improve.
Preserve and Build
Hay Group experts suggest several ways to preserve – and even build – employee engagement while still making targeted cuts in the abovementioned areas. Here are a few that those of us in the engagement business should be focused on and familiar with:
Do more with less. Look for creative ways to train at lower cost, including delivery through online, webinar and phone. Use internal mentoring, coaching and workshops to sustain a learning environment.
Involve and engage. Restructuring immediately conjures up fears among employees – not surprisingly, the biggest reported employee concern voiced in this study was job security. To ensure employees see restructuring as more than a cleverly constructed plan to cut jobs, they need to be involved from the start. And keep them involved – regular, timely communication is paramount to update on progress, reinforce the vision and maintain performance levels.
Handle with care. Contractors who are leaving should be handled with the same sensitivity and concern as regular employees. Treating anyone as “disposable” sends a very bad message to remaining employees about what might happen if their position also becomes expendable. And when things improve, you may well want your contractors back.
Review and revise. Rather than changing existing compensation plans – where employee expectations have already been set – focus on redesigning bonuses to better drive performance. If the potential to earn incentives is reduced, then employees need to be kept informed and understand the solid financial realities behind such a decision.
Consider other possibilities. Rather than cutting incentives entirely, consider how you might defer or phase the pay out of incentives. Are there tradeoffs to be made or non-cash alternatives to recognizing employee performance?
Communicate, communicate, communicate. Salary has a strong emotional connection, as well as an immediate practical relevance, for employees. And while most will agree that a salary freeze is preferable to job cuts, the potential impact on engagement is strong. Salary freezes also make employees acutely conscious of the overall health and direction of the business, and in the absence of information, rumor will run rampant. Senior executives and line managers need to update employees on developments regularly and promptly.
And Finally…
Aside from the specific suggestions outlined above:
Recognize success. Look for alternative means of recognizing success and talent when promotions aren’t possible. Always provide personal recognition for specific achievements and ensure this is part of the organization’s culture.
Understand what employees value. Engage your workforce in possible alternatives to the existing benefit package and determine what different employee groups value most. Consider whether the demographics of the workforce mean you need a more flexible benefits package to meet differing employee needs and still keep costs down.
At a time when organizations are trying to do more with less, it’s important to have a total reward strategy that recognizes success, helps retain high performers and is a positive force for employee engagement.
Don’t overlook the simple things. A personal “thank you and well done” for specific achievements goes a long way toward boosting employee morale.
Source: By Richard Kern http://www.engagementstrategiesmag.com/Cutting-Costs-Without-Cutting-Engagement.898.0.html
Today, businesses everywhere are being asked to do more with less. In this environment, loyal, motivated employees and partners are critical to continued success and profitability. And companies know it: Hay Group’s recent Reward in a Downturn survey in just one of many showing that engagement is the top concern of employers right now.
“The discretionary effort of employees willing to ‘go the extra mile’ is even more critical for surviving the downturn and being positioned to grow once the environment is more favorable,” notes the report. “Similarly, organizations are concerned about retaining their high performers in order to get through the downturn and take full advantage of the upturn when it comes. However, employers can’t afford to pay more on reward.”
And that’s not the only place they’re cutting back. Here are the top five actions companies are taking to reduce costs:
Training & development cuts – 46%
Restructuring/Staff cuts – 42%
Less contract labor – 40%
Cutting bonuses – 38%
Salary freezes – 36%
As you might imagine, budgets for incentive and reward programs are also under scrutiny these days, but there are a lot of ways to foster and maintain engagement that don’t cost a penny. The report rightly notes that employees work for more than money – “they work to get training and career development, to make a valuable contribution and because they enjoy contributing to a common vision and making their place of work a better place to be. Leading organizations understand this and are focusing on improving non-financial aspects of reward.” And concentrating on the non-financial aspects now will put you in a better position to implement more traditional incentive programs once things improve.
Preserve and Build
Hay Group experts suggest several ways to preserve – and even build – employee engagement while still making targeted cuts in the abovementioned areas. Here are a few that those of us in the engagement business should be focused on and familiar with:
Do more with less. Look for creative ways to train at lower cost, including delivery through online, webinar and phone. Use internal mentoring, coaching and workshops to sustain a learning environment.
Involve and engage. Restructuring immediately conjures up fears among employees – not surprisingly, the biggest reported employee concern voiced in this study was job security. To ensure employees see restructuring as more than a cleverly constructed plan to cut jobs, they need to be involved from the start. And keep them involved – regular, timely communication is paramount to update on progress, reinforce the vision and maintain performance levels.
Handle with care. Contractors who are leaving should be handled with the same sensitivity and concern as regular employees. Treating anyone as “disposable” sends a very bad message to remaining employees about what might happen if their position also becomes expendable. And when things improve, you may well want your contractors back.
Review and revise. Rather than changing existing compensation plans – where employee expectations have already been set – focus on redesigning bonuses to better drive performance. If the potential to earn incentives is reduced, then employees need to be kept informed and understand the solid financial realities behind such a decision.
Consider other possibilities. Rather than cutting incentives entirely, consider how you might defer or phase the pay out of incentives. Are there tradeoffs to be made or non-cash alternatives to recognizing employee performance?
Communicate, communicate, communicate. Salary has a strong emotional connection, as well as an immediate practical relevance, for employees. And while most will agree that a salary freeze is preferable to job cuts, the potential impact on engagement is strong. Salary freezes also make employees acutely conscious of the overall health and direction of the business, and in the absence of information, rumor will run rampant. Senior executives and line managers need to update employees on developments regularly and promptly.
And Finally…
Aside from the specific suggestions outlined above:
Recognize success. Look for alternative means of recognizing success and talent when promotions aren’t possible. Always provide personal recognition for specific achievements and ensure this is part of the organization’s culture.
Understand what employees value. Engage your workforce in possible alternatives to the existing benefit package and determine what different employee groups value most. Consider whether the demographics of the workforce mean you need a more flexible benefits package to meet differing employee needs and still keep costs down.
At a time when organizations are trying to do more with less, it’s important to have a total reward strategy that recognizes success, helps retain high performers and is a positive force for employee engagement.
Don’t overlook the simple things. A personal “thank you and well done” for specific achievements goes a long way toward boosting employee morale.
Source: By Richard Kern http://www.engagementstrategiesmag.com/Cutting-Costs-Without-Cutting-Engagement.898.0.html
Friday, October 23, 2009
The Value of Marketing Through a Downturn
Anxiety rises for many as the economy falters. It is tempting to begin the slashing process of marketing expenses. And, everyone knows that marketing is one of those areas that typically gets the brunt of those budget cuts. Now more than ever, marketers should try to resist. As always, marketers should do everything possible to maximize your marketing resources. That’s true, even in a good economy. But history shows us that now is just not the time to curb your marketing efforts.
Here are some of the facts from past recessions:
1970 recession year – American Business Press (ABP) and Meldrum & Fewsmith study showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”
1974-1975 recession years – ABP/ Meldurm & Fewsmith 1979 study covering 1974/1975 and its post-recession years found that “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.”
1981-1982 recession years – McGraw-Hill Research’s Laboratory of Advertising Performance studied recessions in the United States. Following the 1981-1982 recessions, it analyzed the performance of some 600 industrial companies during that economic downturn. It found that “business-to-business firms that maintained or increased their marketing expenditures during the 1981-1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing. Cahners and Strategic Planning Institute (SPI) produced their report, “Media Advertising When Your Market Is In a Recession.” It disclosed, “During a recessionary period, average businesses do experience a slightly lower rate of return relative to normal times. However, expansion times do not generate a higher level of profits than normal periods as might be expected.” This phenomenon was explained by an analysis of changes in market share. “During recessionary periods,” said the Cahners/SPI report, “these businesses tended to gain a greater share of market. The underlying reason is that competitors, especially smaller marginal ones, are less willing or able to defend against the aggressive firms.” The study then pointed out that businesses that increased media advertising expenditures during the recessionary period “gained an average of 1.5 points of market share.”
1990-1991 recession years – Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share. Among the magazine’s sample, 15 percent reported “greatly decreased” ad budgets. Advertising was “somewhat cut” by 29 percent. “The keys to gaining market share in a recession,” concluded Management Review, “seem to be spending money and adding to staff. Firms that increased their budgets and took on new people were twice as likely to pick up market share.
Beyond the statistics, why might it be more important than ever to market despite economic downturn? Strong consideration should be given to the idea that marketing plays a more critical role now than it did during previous recessions. While marketing’s role was once more informational than brand identity building, and considering that never more than today has the clutter factor been so great, relationships between customers and brands are critical. Relationship marketing has surged to the top of effective marketing campaigns as a means to keep an appropriate level of share of mind for purchase loyalty. Marketing serves to foster and maintain consumer-brand relationships.
The effect on profits. From the Harvard Business Review, “Advertising as an anti recession tool,” comes the effect of cutting advertising on the bottom line. “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.” In addition, the article points out “Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next year’s promises.”
What are you waiting for? Get marketing!
Source: www.banc-source.com
Here are some of the facts from past recessions:
1970 recession year – American Business Press (ABP) and Meldrum & Fewsmith study showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”
1974-1975 recession years – ABP/ Meldurm & Fewsmith 1979 study covering 1974/1975 and its post-recession years found that “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.”
1981-1982 recession years – McGraw-Hill Research’s Laboratory of Advertising Performance studied recessions in the United States. Following the 1981-1982 recessions, it analyzed the performance of some 600 industrial companies during that economic downturn. It found that “business-to-business firms that maintained or increased their marketing expenditures during the 1981-1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing. Cahners and Strategic Planning Institute (SPI) produced their report, “Media Advertising When Your Market Is In a Recession.” It disclosed, “During a recessionary period, average businesses do experience a slightly lower rate of return relative to normal times. However, expansion times do not generate a higher level of profits than normal periods as might be expected.” This phenomenon was explained by an analysis of changes in market share. “During recessionary periods,” said the Cahners/SPI report, “these businesses tended to gain a greater share of market. The underlying reason is that competitors, especially smaller marginal ones, are less willing or able to defend against the aggressive firms.” The study then pointed out that businesses that increased media advertising expenditures during the recessionary period “gained an average of 1.5 points of market share.”
1990-1991 recession years – Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share. Among the magazine’s sample, 15 percent reported “greatly decreased” ad budgets. Advertising was “somewhat cut” by 29 percent. “The keys to gaining market share in a recession,” concluded Management Review, “seem to be spending money and adding to staff. Firms that increased their budgets and took on new people were twice as likely to pick up market share.
Beyond the statistics, why might it be more important than ever to market despite economic downturn? Strong consideration should be given to the idea that marketing plays a more critical role now than it did during previous recessions. While marketing’s role was once more informational than brand identity building, and considering that never more than today has the clutter factor been so great, relationships between customers and brands are critical. Relationship marketing has surged to the top of effective marketing campaigns as a means to keep an appropriate level of share of mind for purchase loyalty. Marketing serves to foster and maintain consumer-brand relationships.
The effect on profits. From the Harvard Business Review, “Advertising as an anti recession tool,” comes the effect of cutting advertising on the bottom line. “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.” In addition, the article points out “Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next year’s promises.”
What are you waiting for? Get marketing!
Source: www.banc-source.com
Friday, October 16, 2009
What Is A Business Gift Worth?
With the winter holiday season around the corner, the question of gift-giving is before us. Do they work, are they worth it, what's the best approach to take?
Many businesses appreciate the positive effects of presenting gifts to customers. The benefits of providing tangible recognition for employee accomplishments are well known. And the attention-getting potential of everything from balloons to watches when introducing products and attracting customers is documented in sales statistics.
Such sophistication has long existed on one end of the promotional products spectrum. But most items -- pens, pencils, calendars, key holders, coffee mugs and the like -- have been used simply as giveaways, implying they really possess little intrinsic worth for the recipients and negligible advertising value for the company handing them out. Research statistics do not support this. Many, many recipents get value from and keep these gifts and can remember who gave it to them long into the future. But then, you have to plan for that. A valuable and meaningful gift will be considered by the recepient to be valuable and meaningful. A cheap gift with zero thought put into it (ie. trinkets and trash) will be considered to be just that by the receiver.
It's not surprising that some businesses have viewed promotional products as dispensable but that is more due the the mindset of the giver, rather than the receiver. The mindset of "If there's enough money left in the advertising budget... we'll buy a couple hundred cheap appointment books to give out" is unrelated to a real marketing or sales program. Many times, the pressure point is reached when the sales manager says, "Our calendars are useless, but our competitor is always giving out something or other, so. . . ." Simply put, it needs to be more strategic than that. A well-planned marketing strategy that includes strategic business gift giving and use of promotional products can lead to excellent results.
Ponder this... It appears that the worth of promotional products is embedded in the human psyche. We all know what happens when a neighbor brings over a plate of cookies. "What are we going to give them?" is the first question. No one is comfortable until something is sent over in return. It's the same when we're invited to dinner. From the moment the invitation is received, we're busy planning how to reciprocate.
Whenever we receive a gift, we can't seem to rest easy until we've given something in return. It's as if we're uncomfortable when the scales are out of balance. The desire to reciprocate seems to be inherent in human nature. Therein lays your strategic opportunity.
Managers Magazine, November 01, 1993, by Ellen Daly
Many businesses appreciate the positive effects of presenting gifts to customers. The benefits of providing tangible recognition for employee accomplishments are well known. And the attention-getting potential of everything from balloons to watches when introducing products and attracting customers is documented in sales statistics.
Such sophistication has long existed on one end of the promotional products spectrum. But most items -- pens, pencils, calendars, key holders, coffee mugs and the like -- have been used simply as giveaways, implying they really possess little intrinsic worth for the recipients and negligible advertising value for the company handing them out. Research statistics do not support this. Many, many recipents get value from and keep these gifts and can remember who gave it to them long into the future. But then, you have to plan for that. A valuable and meaningful gift will be considered by the recepient to be valuable and meaningful. A cheap gift with zero thought put into it (ie. trinkets and trash) will be considered to be just that by the receiver.
It's not surprising that some businesses have viewed promotional products as dispensable but that is more due the the mindset of the giver, rather than the receiver. The mindset of "If there's enough money left in the advertising budget... we'll buy a couple hundred cheap appointment books to give out" is unrelated to a real marketing or sales program. Many times, the pressure point is reached when the sales manager says, "Our calendars are useless, but our competitor is always giving out something or other, so. . . ." Simply put, it needs to be more strategic than that. A well-planned marketing strategy that includes strategic business gift giving and use of promotional products can lead to excellent results.
Ponder this... It appears that the worth of promotional products is embedded in the human psyche. We all know what happens when a neighbor brings over a plate of cookies. "What are we going to give them?" is the first question. No one is comfortable until something is sent over in return. It's the same when we're invited to dinner. From the moment the invitation is received, we're busy planning how to reciprocate.
Whenever we receive a gift, we can't seem to rest easy until we've given something in return. It's as if we're uncomfortable when the scales are out of balance. The desire to reciprocate seems to be inherent in human nature. Therein lays your strategic opportunity.
Managers Magazine, November 01, 1993, by Ellen Daly
Wednesday, October 14, 2009
Thanksgiving: An Introspective Holiday
Thanksgiving is just around the corner and it is an excellent time to reflect, give thanks and remind ourselves not to take for granted matters of the heart … matters we may often neglect. We know we should express our thanks, and not just on one holiday but throughout the year. How often, though, do we take the time?
Thanksgiving is when we try to reflect upon the year and be thankful for all the blessings in our lives. Whether it concerns family or business it’s important to pause to remember the best of times, even during those years when our challenges seem foremost in our thoughts. For many, this year has proven to be more challenging than others and we have experienced a cornucopia of emotions. We have endured continual changes to our economic models, legislative challenges, environmental concerns and changing market venues. The year 2009 has not been “business as usual” kind of year, and misgivings about next year may be prevalent for some. Others look forward to the coming year with positive expectations. But regardless of which camp you fall into, take a moment to reflect on the good, the bad and the challenging moments of this past year. The companies who will be the most prepared to succeed in 2010 will be the ones who have learned the lessons of 2009, the ones who recognize the challenges, identify the opportunities and recognize the value of their business partners and take the time to thank them.
Of all the rules we remember from our childhood, it is the “please and thank you” rule that is most ingrained into our collective character.
The promotional products industry offers endless possibilities to express and convey gratitude. “Thank you” promotional products generate and ensure customer loyalty and brand loyalty. A personalized thank you goes a long way to building a relationship with our customers. Of course, one of our major product categories is Awards and Recognition. We are inundated with gifts and thanks during this holiday period, given that this is the season when we would emphasize and perhaps be expected to say, “thank you.” But the reality is that we should think about saying it all year ’round.
When was the last time you wrote a thank-you note to a customer? It’s probably been awhile.When you choose the appropriate time, or even a surprising time, to bestow a “thank-you” by sending a personal note accompanied by a promotional product, you will establish a relationship of awareness and mutual recognition and respect. Expressing thanks to your customers for their second (or 11th or 25th) order says that you value them as clients and you don’t take their business for granted.
Using promotional products to say “thank you” will build awareness and loyalty. Best of all, promotional products make the recipients feel appreciated and exceptional.We have so much to be thankful for. We are very thankful for the privilege of working with such fine people in such a rewarding business. We wish you a special Thanksgiving and, this year, we suggest you call someone just to say “thank you” for making a difference in your life.
Source: http://www.ppbmag.com/Article.aspx?id=4384 By: Stan Breckenridge
Thanksgiving is when we try to reflect upon the year and be thankful for all the blessings in our lives. Whether it concerns family or business it’s important to pause to remember the best of times, even during those years when our challenges seem foremost in our thoughts. For many, this year has proven to be more challenging than others and we have experienced a cornucopia of emotions. We have endured continual changes to our economic models, legislative challenges, environmental concerns and changing market venues. The year 2009 has not been “business as usual” kind of year, and misgivings about next year may be prevalent for some. Others look forward to the coming year with positive expectations. But regardless of which camp you fall into, take a moment to reflect on the good, the bad and the challenging moments of this past year. The companies who will be the most prepared to succeed in 2010 will be the ones who have learned the lessons of 2009, the ones who recognize the challenges, identify the opportunities and recognize the value of their business partners and take the time to thank them.
Of all the rules we remember from our childhood, it is the “please and thank you” rule that is most ingrained into our collective character.
The promotional products industry offers endless possibilities to express and convey gratitude. “Thank you” promotional products generate and ensure customer loyalty and brand loyalty. A personalized thank you goes a long way to building a relationship with our customers. Of course, one of our major product categories is Awards and Recognition. We are inundated with gifts and thanks during this holiday period, given that this is the season when we would emphasize and perhaps be expected to say, “thank you.” But the reality is that we should think about saying it all year ’round.
When was the last time you wrote a thank-you note to a customer? It’s probably been awhile.When you choose the appropriate time, or even a surprising time, to bestow a “thank-you” by sending a personal note accompanied by a promotional product, you will establish a relationship of awareness and mutual recognition and respect. Expressing thanks to your customers for their second (or 11th or 25th) order says that you value them as clients and you don’t take their business for granted.
Using promotional products to say “thank you” will build awareness and loyalty. Best of all, promotional products make the recipients feel appreciated and exceptional.We have so much to be thankful for. We are very thankful for the privilege of working with such fine people in such a rewarding business. We wish you a special Thanksgiving and, this year, we suggest you call someone just to say “thank you” for making a difference in your life.
Source: http://www.ppbmag.com/Article.aspx?id=4384 By: Stan Breckenridge
Friday, October 9, 2009
The Value of Marketing Through a Downturn
Anxiety rises for many as the economy falters. It is tempting to begin the slashing process of marketing expenses. And, everyone knows that marketing is one of those areas that typically gets the brunt of those budget cuts. Now more than ever, marketers should try to resist. As always, marketers should do everything possible to maximize your marketing resources. That’s true, even in a good economy. But history shows us that now is just not the time to curb your marketing efforts.
Here are some of the facts from past recessions:
1970 recession year – American Business Press (ABP) and Meldrum & Fewsmith study showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”
1974-1975 recession years – ABP/ Meldurm & Fewsmith 1979 study covering 1974/1975 and its post-recession years found that “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.”
1981-1982 recession years – McGraw-Hill Research’s Laboratory of Advertising Performance studied recessions in the United States. Following the 1981-1982 recessions, it analyzed the performance of some 600 industrial companies during that economic downturn. It found that “business-to-business firms that maintained or increased their marketing expenditures during the 1981-1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing. Cahners and Strategic Planning Institute (SPI) produced their report, “Media Advertising When Your Market Is In a Recession.” It disclosed, “During a recessionary period, average businesses do experience a slightly lower rate of return relative to normal times.
However, expansion times do not generate a higher level of profits than normal periods as might be expected.” This phenomenon was explained by an analysis of changes in market share. “During recessionary periods,” said the Cahners/SPI report, “these businesses tended to gain a greater share of market. The underlying reason is that competitors, especially smaller marginal ones, are less willing or able to defend against the aggressive firms.” The study then pointed out that businesses that increased media advertising expenditures during the recessionary period “gained an average of 1.5 points of market share.”
1990-1991 recession years – Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share. Among the magazine’s sample, 15 percent reported “greatly decreased” ad budgets. Advertising was “somewhat cut” by 29 percent. “The keys to gaining market share in a recession,” concluded Management Review, “seem to be spending money and adding to staff. Firms that increased their budgets and took on new people were twice as likely to pick up market share.
Beyond the statistics, why might it be more important than ever to market despite economic downturn? Strong consideration should be given to the idea that marketing plays a more critical role now than it did during previous recessions. While marketing’s role was once more informational than brand identity building, and considering that never more than today has the clutter factor been so great, relationships between customers and brands are critical. Relationship marketing has surged to the top of effective marketing campaigns as a means to keep an appropriate level of share of mind for purchase loyalty. Marketing serves to foster and maintain consumer-brand relationships.
The effect on profits. From the Harvard Business Review, “Advertising as an anti recession tool,” comes the effect of cutting advertising on the bottom line. “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.” In addition, the article points out “Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next year’s promises.”
What are you waiting for? Get marketing!
Source: www.banc-source.com
Here are some of the facts from past recessions:
1970 recession year – American Business Press (ABP) and Meldrum & Fewsmith study showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”
1974-1975 recession years – ABP/ Meldurm & Fewsmith 1979 study covering 1974/1975 and its post-recession years found that “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.”
1981-1982 recession years – McGraw-Hill Research’s Laboratory of Advertising Performance studied recessions in the United States. Following the 1981-1982 recessions, it analyzed the performance of some 600 industrial companies during that economic downturn. It found that “business-to-business firms that maintained or increased their marketing expenditures during the 1981-1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing. Cahners and Strategic Planning Institute (SPI) produced their report, “Media Advertising When Your Market Is In a Recession.” It disclosed, “During a recessionary period, average businesses do experience a slightly lower rate of return relative to normal times.
However, expansion times do not generate a higher level of profits than normal periods as might be expected.” This phenomenon was explained by an analysis of changes in market share. “During recessionary periods,” said the Cahners/SPI report, “these businesses tended to gain a greater share of market. The underlying reason is that competitors, especially smaller marginal ones, are less willing or able to defend against the aggressive firms.” The study then pointed out that businesses that increased media advertising expenditures during the recessionary period “gained an average of 1.5 points of market share.”
1990-1991 recession years – Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share. Among the magazine’s sample, 15 percent reported “greatly decreased” ad budgets. Advertising was “somewhat cut” by 29 percent. “The keys to gaining market share in a recession,” concluded Management Review, “seem to be spending money and adding to staff. Firms that increased their budgets and took on new people were twice as likely to pick up market share.
Beyond the statistics, why might it be more important than ever to market despite economic downturn? Strong consideration should be given to the idea that marketing plays a more critical role now than it did during previous recessions. While marketing’s role was once more informational than brand identity building, and considering that never more than today has the clutter factor been so great, relationships between customers and brands are critical. Relationship marketing has surged to the top of effective marketing campaigns as a means to keep an appropriate level of share of mind for purchase loyalty. Marketing serves to foster and maintain consumer-brand relationships.
The effect on profits. From the Harvard Business Review, “Advertising as an anti recession tool,” comes the effect of cutting advertising on the bottom line. “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.” In addition, the article points out “Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next year’s promises.”
What are you waiting for? Get marketing!
Source: www.banc-source.com
Wednesday, October 7, 2009
All Professional Teams Wear Uniforms
The expression that 'all professional teams wear uniforms' certainly rings true in the business world. Short of the company sponsored team uniforms or the traditional industrial uniforms that we provide, what we are really referring to is the thought that all employees, especially customer contact personnel, should wear company branded apparel on a regular basis.
The benefits of this are several. One, it reinforces the marketing concept of the organization. Two, the organization's brand exposure becomes exponential. Three, and often most importantly, it creates esprit de corps among the business' employees - its greatest asset. The most common types of business 'uniforms' that we offer are embroidered polo style and boardroom casual woven shirts. Today, however, awaking to overnight temperatures in the thirties, we would like to discuss strategies for making decorated outerwear a part of an organization's 'uniform.'
Outerwear is a category that is oftentimes overlooked. For at least three seasons, in most parts of the country, some type of outerwear is required attire. This fact makes decorated outerwear a sensible strategy to be included in a business's marketing mix. For instance, a nicely decorated fleece lined three season jacket will help keep the employee warm and dry in their travels, but will also keep the company's brand front and center in both the community and the workplace.
With tightened budgets, we often hear 'we would like to provide outerwear for our employees, but the current budget just won't allow it' Unfortunately, this is a true sign of the times. One way to tackle this dilemma is by splitting the garment cost with an employee - perhaps 50/50. If payroll deduction is an option, perhaps spread the employees portion out over 2 or 3 pay periods. We have found this to be a valued benefit to offer employees. The key to this co-pay program is offering employees a quality garment, with classy embroidered decoration, at better than retail prices. Employees desire quality garments that they will be proud to wear on a regular basis. A program structured like this can be a valued employee benefit as well as an effective branding strategy.
If you have not included outerwear in your garment program, you can really reap some benefits by adding a 1/4 zip fleece, three season jacket, Carhartt style or even a leather bomber to the mix. It's getting colder and it's almost time to bundle up! Fall is a beautiful time of year - we hope that you all have the opportunity to get outside and enjoy it!
Rob and Diane
The benefits of this are several. One, it reinforces the marketing concept of the organization. Two, the organization's brand exposure becomes exponential. Three, and often most importantly, it creates esprit de corps among the business' employees - its greatest asset. The most common types of business 'uniforms' that we offer are embroidered polo style and boardroom casual woven shirts. Today, however, awaking to overnight temperatures in the thirties, we would like to discuss strategies for making decorated outerwear a part of an organization's 'uniform.'
Outerwear is a category that is oftentimes overlooked. For at least three seasons, in most parts of the country, some type of outerwear is required attire. This fact makes decorated outerwear a sensible strategy to be included in a business's marketing mix. For instance, a nicely decorated fleece lined three season jacket will help keep the employee warm and dry in their travels, but will also keep the company's brand front and center in both the community and the workplace.
With tightened budgets, we often hear 'we would like to provide outerwear for our employees, but the current budget just won't allow it' Unfortunately, this is a true sign of the times. One way to tackle this dilemma is by splitting the garment cost with an employee - perhaps 50/50. If payroll deduction is an option, perhaps spread the employees portion out over 2 or 3 pay periods. We have found this to be a valued benefit to offer employees. The key to this co-pay program is offering employees a quality garment, with classy embroidered decoration, at better than retail prices. Employees desire quality garments that they will be proud to wear on a regular basis. A program structured like this can be a valued employee benefit as well as an effective branding strategy.
If you have not included outerwear in your garment program, you can really reap some benefits by adding a 1/4 zip fleece, three season jacket, Carhartt style or even a leather bomber to the mix. It's getting colder and it's almost time to bundle up! Fall is a beautiful time of year - we hope that you all have the opportunity to get outside and enjoy it!
Rob and Diane
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