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Creating Value. Purpose and Mission. Sales department purpose = Maximize Revenue Sales department mission = get and keep customers Must have a meaningful value proposition. Value Proposition. To create value, you must have a value proposition that is customer focused and solutions based.
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Purpose and Mission • Sales department purpose = Maximize Revenue • Sales department mission = get and keep customers • Must have a meaningful value proposition
Value Proposition • To create value, you must have a value proposition that is customer focused and solutions based. • Example value proposition: • We are committed to partnering with our advertisers (and their agencies) by providing innovative solutions for connecting them to our audience in a way that delivers advertiser-defined results and jointly builds both of our brands.
Objectives • Sales department objectives • To get results for advertisers • To develop new business • To retain and increase current business • Pre-sell • Up-sell • To increase customer loyalty • “Under-promise” and “over-deliver”
Strategies • Sales strategies • To sell solutions to advertising and marketing problems • Intense customer focus • Not your bottom-line focus. • To reinforce the value of advertising and advertising in your medium • To create value for your product/service/medium • To become the preferred supplier and consultant • To establish, maintain, and improve relationships at all levels of the client and agency (keep agency informed) • No prestige rub-off to the agent • To provide the best research, information, and advice • To be customers’ marketing consultant
Agencies = CPPs/CPMs/CPCs • Typically experienced specialistswant only price and service • Know the person – a people expert • Advertisers = Results/ROI • Typically inexperienced generalists want to know how to buy and use your medium. • Advertisiers want ROI • Know marketing – an advertising and marketing expert
Marketing is more complex. • Takes more time • Requires more knowledge of the customer’s business • Look at Advertising/Sales Ratios (Ad Age Web site data center) • Look at 100 Leading National Advertisers (Ad Age Web site data center) • Discovery Questions (Charles Warner’s Web site “Papers by Charles Warner”
Advertising Vs. Promotion • Sell the value of advertising versus promotion. • What is the difference? • Advertising tells consumers why to buy – has long-lasting effects (branding). • Promotion tells consumers when to buy (now) and often at a lower price – has short-term effects . • Increasing advertising by 1% is more profitable than lowering price by 1% to increase volume.
Creating Value • Features, advantages, and benefits • Sell advantages • Company advantages • Product/Service/Medium advantages • Service Advantages • Position benefits according to personal needs. • Use a Benefits Matrix (www.charleswarner.us, in Papers by CW section).
Creating Value: Selling Solutions • Know your customers’ marketing goals (or help define them). • Increase market share • Increase traffic • Increase sales • Increase profit margins • Increase share of mind • Increase stock price • Increase share of voice
Creating Value: Selling Solutions • Know your customers’ primary marketing strategy (or help define it). • Differentiation • Focus (niche) • Low-Cost Producer
The Objectives of Advertising • To Inform • Specific information • To Persuade • Creating the perception of advantages. • Unique Selling Proposition (USP) KISS • To Remind • Continual reminders of benefits
Advertising Objectives • Informing • Create awareness • Communicate information • Persuading • Try the product • Use more of the product
Advertising Objectives • Reminding • Adoption of a product (habit) • Reinforcement • No loyalty • Brands must stay competitive every day, continuously. • Must maximize touch points.
Plan Media To Meet Advertising Objectives • Thin Market • Only about 1-4% of consumers are in the market for a specific product at any one time. • Thus, critical to reach them when they are most receptive. • To assure reaching consumers when they are receptive, must havecontinuity, not flighting. • Frequency is not the key,recencyis (reach planning). • Best media for recency: mobile, radio, outdoor.
Create Value • EV = Q + R + S P To increase the Economic Value to the customer, raise the numerator (Quality, Results [ROI], and Service), don’t lower the denominator (Price).
Strategy = Create Value • Value, like reality, is a perception • The price paid is a combination of real and perceived value. • Buyer perception is reinforced by value signals: • Brand reputation • Cumulative advertising and promotion (differentiation)
Strategy = Create Value • Sales promotion material and media kits • Case studies of advertiser success • Advertiser/client list • Telephone courtesy • Ethical practices • Promotions/contests • Special packages/promotions • Price (high = quality) • Management visibility
Spend time in client’s business • Client brainstorming • Creative ideas (campaigns, positioning, brand extensions, commercial production) • Sales presentations (www.charleswarner.us, “Checklist for Solutions-Based Presentations” in the Papers by CW section). • Salespeople
What Buyers Want • Ideas (Added Value) • Communication (Targeted, Helpful) • Respect For Their Time • Run As Ordered • Responsiveness (Speed, Accuracy)
Ad Age 2007 Sales Survey Report • Advertising Age Reported on an Advertiser Perceptions Survey of 2000 Media Decision Makers: • “In addition to brand knowledge, media buyers and planners are also looking for good communication skills, professionalism, and understanding of marketer needs and priorities.” • “…least important characteristics in a sales rep identified by marketers were sales presence and entertainment.”
