The Marketing Executive Center

AD Age has listed the top 600 Media and Marketing Blogs, by assessing 8 rankings from different Blog or search repositories and calculating a score.

See for yourself, there are some good ones and some absolutely horrific blogs.

Related Story Do Auto Manufacturers Gas Promotions Work? from the Marketing Executive Blog. 

Brandweek reports another similar story on the gas promotion. 

What’s new is Suzuki’s promo which includes 0% financing and 3 months of gas (varies by model) instead of a cash rebate.   They report sales up for the month of 9%.  Good news for automakers in general, including US AMs.

Remember because these offers are given instead of cash, they delay or reduce the cash incentive, providing real returns for the company and providing the customer with a true value.

The Whine and Whimper of the Brand Marketers

This is not a generic poke at all of you, but you know who you are.  Yes, You do, so NO EXSCUSES. 

I continually hear the following:

“We can’t measure our brand advertising?”

“What is our brand worth?”

“If we only could measure the brand and it’s value?”

“I wonder what the brand contributes in sales?”

Before I go Gordon Ramsey on you, just stop you DONKEY!  These are the Whines of the masses who have NO and I repeat NO backbone.  You must, understand the following for marketing.  And it Applies to ALL Marketing:

If there is no way to measure something, come up with the BEST possible way to measure it.  Bring in experts, colleagues and financial folks to help you be rational, sound and present something that is realistic.

You will say:

“They will shoot it down?”

“They will not accept it?”

“They will say it is not realistic”

And you will say:

“So help me make it realistic, this is a substantial measure we must track to determine if, how, when and where we need to allocate the budget.  It would be irresponsible of you and me to ignore this opportunity.”

We can go on and I can continue to feed you words, but essentially as a Marketing Executive start developing the measure.

Accountability for Brand Spending that Boggles the Mind

Now, I’ve sat and talked with representatives (CMO, EVPs, CEOs) on spending large budgets on brand. Sponsorship, Media, etc.. Often, even at the large companies (EG: a major international overnight shipper and a nation-wide pizza delivery chain to name a few) about their tactics on measuring impact.

Their response is a surprising: “We don’t know but we have FAITH that it is working”

So if the “Big Boys” are not tracking the impact, do you have to? Should you?  Yes, of course.  Why? Because you want to be GREAT at your position and the measurement is there, you need to be creative.

Example: A major beer organization did not know whether their brand sponsorship during a sports event was effective.  How would you measure it?  They didn’t know for a long time, then they decided they needed to identify a connection and they found it.  Simple enough it was the local sales of the beer during the sponsorship.  Sure they found national consumption increased by a little, but local and regional shot up. Purchases increase right before and extended after the event.

That seems easy right? Thinking about it they probably took the annual/seasonal average and then subtracted that from the event timed sales to get their increase… There might be “perception and identity” or “awareness” changes they could measure as well.

But usually it all comes down to amount sold.

Play to the Revenue

This may seem elementary, but it is important to track the measures back to the key performance metrics of your organization.  Revenue, Profit, Churn, Share of Wallet, etc… This makes it meaningful.

The problem some marketers run into is they try to solve for everything. In the beer example, we’re solving for revenue and profit increases in a region. Maybe also churn or penetration, but you can’t hit it all with brand. 

Which is good. Because different brand, response, direct, etc.. types of campaigns are to impact your key areas of responsibility.

Therefore, identifying the KPIs brand hits and affects, now starts to open the holes in your measurement game.

The easy way out, Correlative Advertising Spend

Sometimes you have to be happy with something a little generic.  But you shall not default to this always.  It is irresponsible. 

For example: If you secure a product placement in a movie, there is a way to identify the actual cost of spending to reach the audience through the media.   This in itself, if the placement is FREE or there is a cost…. You can identify if it was worth it and if it should be pursued in the future.

However, this is not always best and is not directly attributable to revenue (unless you make the argument that you saved the company the difference, but you haven’t proved an increase in sales? and then we say SO WHAT!), and therefore still an expense without a return.

You may need to start out with: ” Here’s what we would have spent to get this…” in the first phase, but develop the ability or reporting to track the impact.  If it is media – what happened during the media or the exposure to the media over time?   Did website hits go up/down? Leads up/down? Where, how why?

Start Guessing.  Start thinking what could have happened? Then you need to go find it, test it and re-test it.

Who said marketing was NOT a science?   I have said and will continually say: Marketing brings all the aspects of life, psychology, behavior, math and science  plus creativity into one department.   Marketing is a true multifaceted discipline. 

UPI Reports a Dealership in Butler, Mo: Article here – is offering a different spin on the well – received gas promo from manufacturers/dealers like Chrysler.  This one offers a choice or GAS or a GUN. The dealership is offering customers the choice of $250 in free gas or a free semi-automatic handgun, KMBC-TV, Kansas City, Mo., reported Wednesday.

“Like I say, it’s a choice—protection or gas,” Moore said. “We got high gas prices, theft, carjackings, innocent people getting hurt.”

Telling as it is, Moore reports 80% are going for the Gun.

Shall we ROI this Puppy:

Dealer Incentive/Promo: $250 per car.  Gas or Gun.

Since we do not have any additional sales or lead data, we can conclude that the “publicity” is really the ROI that will turn into additional sales.

People like you and me, reading and picking up this story via UPI and NPR:  ~2 Million @ $20 CPM for Advertising = $40,000 in advertising. Not bad.

Sales - Sure people will learn about this (locally) and it will generate more leads and sales.

Let’s say conservatively in MO, an additional 100,000 people hear the publicity (we assume it’s folks who can drive to the dealer)
- Response rate: .15% – conservative = 150 people or additional leads
- Sales at 1% of leads = 15 additional sales
- Revenue at $12K avg car cost = $180,000 in additional revenue

Roundup:

It really goes to show that something shocking can get you good publicity and add to your bottom line. Ask the CEO of Virgin International – Bransen. That was his trademark, he would create the news, publicity and drive for his brand.   People would follow. 

What are you doing to shape your brand?

Mediapost recently ran an article on the Gas Promotion from Chrysler http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticle&art_aid=82909 FYI – you need to login or create an account.

Does this work? Well according to the article, Chrysler is extending the promotion.

The Promo details: “Chrysler launched the effort to get consumers to buy cars despite gas prices by dangling cards locking in $2.99-per-gallon gasoline for three years or 36,000 miles. The program enables buyers of Chrysler, Dodge or Jeep vehicles to apply for a “Let’s Refuel America” card that they can use at participating gas stations. Instead of paying the pump price, the consumer is billed $2.99 a gallon for either regular gas, E85 or diesel fuel. Chrysler pays the difference. ”

The effect: Website hits up 25% over previous week, web leads up 34%.  So effective yes. And gas prices since the begining of the campaign are up 20 cents. With no end in sight to rising gas prices this could be a home run for Chrysler.

Let’s breakdown the ROI:

Promo cost per car: 36000  miles / 15 miles to the gallon = 2400 gallons.

Difference in gas cost avg: $1.00 = $2,400 dollars total over 3 years, or $800 per year.

Less that the current Cash back offer of $3,000, if the consumer uses the card and keeps the car for 3 years.

Now the Leads and Revenue impact:

– If the leads are up 34%.. and lets say graciously that 1% convert into car sales = .34% increase in sales due to the promotion. – Provided all costs are still flat. Chrysler has actually amortized their cashback promo (in the form of a gas card) over 3 years, and not paid in one.  Less than 2/3rds of the cash back ($1600) can be applied to the bottom line revenue for the year. – This does not take into consideration that gift cards have a low redemption rate, however you can expect a better redemption as this is directly tied to consumer fears, emotions and pockets.

 Again -some of these assumptions are generous.  But $1600 per car addition to the bottom line on new car sales plus an increase in sales will add to the year on year revenue for Chysler. 

Definitely a promotion worth watching through the summer.

Alright so nobody is perfect. Sales nor marketing.  I’m more of a marketer by trade, but marketers and salespeople are fooling themselves if they don’t acknowlege the assets within themselves and each other.

Each marketer needs a sense of how to sell. Every salesperson needs to know marketing.  But marketers don’t need to know how to cold call, and salespeople don’t need to know how to manage media and formulate campaigns.

Still with me, here’s where it gets good….

Much like brothers (or sometimes sisters) they two fight. One blames the other, one says the other doesn’t know what the other needs, blah blah blah.

The Problem 

Marketing Departments don’t know sales, the technique, what it takes, how to apply it, or what it’s like day to day with the customer. Plain and simple. Marketing thinks it knows. They think because they listen they know, but you don’t know what it’s like until you have done it.

Sales Departments don’t know marketing. Sales assistants may create flyers, and mail out post cards to customers.  Good for you. That’s not marketing.  Face it, you don’t know it on a mass scale.  Market yourself, yes, market and brand the company, no.

The Realization, Epiphany

Walk a mile in the othe’s shoes. Yes, get out and do it. Go for a week and cold call, walk into customer’s offices, upsell, manage etc… Salespeople, take a week and run email, manage the website, get sales materials created, whatever.  Get in and get your hands dirty.

One of the worst Sales Jobs I ever had 

Really the worst was selling Meat Door to Door. And you say – “How do you do that?”, “How can you?”.  It’s possible and it does or did happen. Yes, I was 15 and my mom dropped me off at the job opening and they said – hop a truck.  So I did, next thing I know I’m walking door to door.

The guy, Sam who was may mentor in door to door meat said “the best approach is to knock on the door and quickly ask ‘Do you like meat?’ ” Simple but easy. If they said yes, they were a customer. If no, move on.  Stay out on the route until you emptied your truck.

It was brutal, and yet guys did this everyday. And for the customers it was a good deal and a good product.  For me I learned what possibly could have been one of the worst sales jobs to take.

The point- I can empathize. I can understand.  Can you? You can’t unless you’ve gone out with the salesmanager and sales  associate.  You can’t unless you’ve sat in the marketer’s chair.

Fix, or Manage 

First, both departments need evangelists for the other.  Influential sales people need to get into the marketing function, sit in one week a year, be active on steering committees, etc.  Marketers need to spend more time in the field in different regions.   The markets are important so marketers at higher levels may need to be in the field 4 – 6 weeks if not more with regional managers and sales associates.

Next, Manage Expectations and Meetings.  At every meeting one should ask, should a field level sales person be involved or marketer?  They may not participate in the beginning but over time, people will.  Especially if you ask them for their opinion.

Finally, they both need one supervisor. Yes Really. The time has come.   Instead of full separation pushed into the CEO, combine and have one person with marketing and sales experience run the departments.  It will be hard to find.  They will need either an expert marketing professional or sales professional to be their right hand person.

Final Thoughts – Ending the War

It may not be a real war. But the two can work together.  The motivations are different, but the right leaders can monetarily and emotionally lead the two teams to success.  It’s possible. It takes work and the metamorphosis is not overnight.  But when the two fire together it can be magic.  It is worth fighting for the right people, the right departmental organization and compensation structure, otherwise expect in-fighting and a degradation of interaction, efficiency and teamwork from sales and marketing.

Managing Large Departments can be challenging.  Often as a manager you need to rely on your managers to properly motivate and oversee the day to day operations, especially in marketing.  The article examines the diversity of a marketing department and the challenge in motivating different types of people.

Think for a moment of the departments in an organization like:  Accounting, HR, Sales, Finance, etc..   There is an expertise required for these positions, but managing the skill sets is not a diverse task.  Many are cut from the same cloth.

Within a marketing department there are many faculties of expertise that  people overlook, here are a few:

1.  Creative Services -creating day to day marketing from design, copy to concept.
   

   1. Skills in this department: Project Management, Design, Web Design, Print design, Copywriting, Proofing, vendor management
   
   



2. General Marketing – Managing the Client interaction and pro actively fulfilling on the marketing strategy
   

   1. Skills: Project management, diplomacy, client service, strategy, vendor management, Presentation Skills, Media knowledge, Customer Knowledge
   
   



3. Analytics – Measuring and managing the marketing response data.  How much, when, from where and why.
   

   1. Skills: Advanced Analytics, Database Management, Reporting, Presentation Skills
   
   



4. Research – Dedicated to understanding the business and the customer.  Note here, if research is only interested in the customer and not the interaction between the business and the customer, it is a lost cause.  One cannot function without the other.
   

   1. Skills: Analytics, Customer knowledge, Business Knowledge, Creative Thinking and Strategy
   
   



5. Business Development or Partner Marketing – Creates meaningful revenue driving partnerships
   

   1. Skills: Networking, Persistence, Sales Background, Contracts, ROI Evaluation and Creative Thinking
   
   



6. Other departments:
   

   1. Trade Events – Project management, Vendor Management, Event planning
   
   
   2. Sponsorship management – Project Management, Event management, Talent management, Event Planning
   
   

The List can go on. The purpose here is to show two clear items:

1. Marketing is not all about being creative and the “creatives” in marketing, you can see it is a diverse set of skills


2. The Diverse Skill sets engender a certain type of person who needs to be managed according to their stregnths and build their weak points.

How is it done?  How do you manage a potentially large group or event diverse set of individuals?

Sorry, there is no easy answer. It is mostly a trial and error game. Testing in my mind.  Figuring out what people respond too.   However, there are some common themes to follow:

1. Recognition – Most people like and strive for recognition.  A common recognition program can help morale and motivate people.  Face it, many managers don’t recognize people.  They don’t have time or know how to do it.   They often go day to day and let excellence slip in and manage mediocrity.
   

   1. Several forms to try out – individual recognition (one on one), group or monetary.  If you are the head of the department, one on one can work very well as can group.  Monetary Recognition has to be carefully managed not to start a feeling of entitlement or equality. Sales teams often need monetary with group recognition.
   
   



2. Collaboration – Some people need and want to be part of new, innovative or large projects.  Let them in, if they’ve earned it – even if it is outside their expertise.  You’ll be surprised how they learn and get up to speed, they will ask questions and you need to support their queries.


3. Responsibility -Some people align more responsibility with money.  You want to encourage people to view more responsibility as an opportunity to lead, excel and gain experience that will lead to more reward.   It is a privilege to lead a project

Finally, large team building events are often viewed as lackluster and days spent wasted in which people have to make up for time lost.   Are they good for teams to communicate and meet, yes.  But realize you are also asking your team to put down their work.  Make sure there are objectives to team building.

1. Working with cross-functional or other departments, increasing communication ties


2. Communicating with leaders they often do not have access to work with

Again, this is a template to get started.  Once people start to understand there are tangible and intangible rewards and feedback, they start to become motivated and have goals.  This is helping people to have more fun, rewarding careers while making the environment enjoyable.

At first this looks like a photoshop prank, but it’s not.

Here are the photos – Before and After









Now here’s the video of the Billboard Liberation group changing it – the freaks.



And a link to their justification for the change. Article

Tags: Campaigns, Marketing, Billboard, AT&T, Funny, NSA, BLF, Billboard Liberation Front

See this great bit of info on brand measurement and buzz from the Oscars and from the people at Collective Intellect. Very interesting. And see why Heidi Klum’s dress is the winner for Coca Cola with a 15% lift in Buzz.

Oscar Advertiser Analysis

Brand	Pre- buzz	Post- buzz	Lift
Diet Coke	20	23	15%
GM	46	46	0%
L’Oreal	9	12	33%
MasterCard	18	18	0%
Dove	4	4	0%
JCPenney	17	17	0%
Bertoli Foods	4	4	0%
AmEx	48	48	0%
Toyota	38	38	0%
McDonald’s	41	41	0%

Tags: Marketing, Branding, Measurement, Analytics

What you think you can do…. and … The Result:

#1) Name your company… Result: Company name though important is not as important as how it is presented. Remember good marketers can lead Eskimos to buy refrigerators, from Great Salespeople.

#2) You can design an Advertisement… Result: Lack of enthusiasm from customers, no response, non-professional looking ad, poor image, wasted money. Leading to the thought that Marketing does not work for your company.

#3) You can design your own logo and business cards… Result: This is called the “identity” and it is fragile. This is the position of your company. Everything from the layout to the font, to the colors used will create the “feeling” in a person. Typical results: Nonprofessional, not trusted, hard to reproduce, costly, cheap looking, etc…

#4) You can create a mail or email campaign..Result: the target customer is not reached, spam, loss of money, no response, no action, non-professional, degrading image of the brand, etc…

Remember, I’m not saying the Marketing Entourage get it “RIGHT” all the time. But they have a better chance than you.

It’s like you stepping up to the plate in a major league baseball game. You’ll probably strike out, there’s a great chance you will every time. In fact, many of the real players in the game will strike out also, but they have a better chance than you of hitting the ball well.

Tags: WhyYou Can’t Do Markeitng, Advertising, Direct, Email, Branding