Direct Marketing Boulder City NV
Las Vegas, NV
Las Vegas, NV
Las Vegas, NV
Alternative Marketing Now Traditional : Branding Strategy Insider
I was on a panel of experts recently at a big conference in Asia.
The conference dinner the night before had been far too vigorous and an old friend from the drinks industry had been updating me on Asian drinking alternatives. It was now the morning after the night before and I was nursing the mother of all hangovers. I found myself gulping down water, wincing every time a flashbulb went off, and looking out into a sea of marketers hoping desperately that nobody would ask me anything tricky.
Which was when a voice from the darkness asked 'What are the traditional communication tools and what are the non-traditional ones?' I gulped. This was actually quite an interesting question and, as with most interesting questions about marketing, the answer was: 'It depends'.
In the olden days the answer was simple. Anything above-the-line - advertising - was deemed to be the traditional communication tool for building brands. The less traditional, and somewhat less glamorous tools, such as direct marketing and sales promotions, were the alternative approaches. Below-the-line did not just refer to the method of commission for these alternative methods, it was also a way of positioning them as sub-standard and unconventional compared with the gold standard of advertising.
Things changed in the 80s. Once-frowned-upon tools such as direct mail and sales promotions became increasingly accepted as advertising's equivalent and often its superior. A proven ability to deliver big ROI and the emerging agency expertise in these approaches meant these tools became traditional in every sense of the word.
Clutter had begun to emerge as a key problem for marketers and the new non-traditional tools were those freshly created by marketers to get around or through the cluttered communication landscape. Ambient methods such as ads above the urinals in toilets and infomercials became all the rage.
Then came the internet. Almost overnight, non-traditional meant anything online. First it was clunky web pages, then banner ads, then search optimisation, then blogs. Most marketers who experienced the turn of the century drew a distinction between the traditional offline world and the alternative tools associated with online communications.
But with internet spend now featuring heavily in most companies' marketing budgets, it is hard to continue to equate online marketing as an alternative approach any more. Flick through the average brand manager's laptop these days and search statistics are just as likely to appear as BARB or Acorn data. Indeed, with the ever-growing influence of Google's auctioning approach as a method for buying traditional media as well as search, it is clear that the online world is becoming the epicentre of most marketing communications.
The past few years have seen the emergence of touchpoints as the central model for marketing communication. Gone is the archaic notion that there is a period of marketing communi...
Building Marketing Budgets: Branding Strategy Insider
What Percent of Your Revenue Should You Spend on Marketing?
While most companies spend between 2-10% of revenues on marketing, there is no firm rule. For instance, while some companies spend only 1%, others will spend up to 50% (when launching new products). Generally, consumer product companies need to spend more on marketing than B2B companies as B2B companies can be much more targeted and efficient in their marketing. B2B companies generally spend 6% or less, while consumer product companies generally spend between 7 and 12%.
What your competitors are spending on marketing and what you can afford will affect how much you spend on marketing. Products and services sold in high traffic, high visibility locations will not need to spend as much as products and services that are less accessible. You will need to spend more if you are a new entrant in a category, are launching a new product or are trying to aggressively gain market share.
The best way to build a marketing budget is from the bottom up, starting with your target audiences and determining the most effective and efficient ways to get to those audiences. Ideally, you will want to achieve maximum reach and frequency in your messages using the optimal combination of marketing approaches, vehicles and media. Depending upon your product category, any of the following might be in your marketing mix: advertising, direct marketing, web sites, Internet marketing, PR, promotion, events, sponsorships, collateral m...
Direct Mail: Marketing's Negative Tidal Wave
Direct marketing has become a profligate disaster of epic proportions.
The relatively low cost of direct mail ensures that a campaign can prove profitable even if less than 2% of those targeted actually respond. But while direct agencies celebrate the profits from these tiny minorities they rarely pause to consider the implications of the enormous majority who do not respond. Most consumers have only negative perceptions of direct marketing. Indeed eight out of ten people now believe that unsolicited letters have no relevance to them whatsoever. The traditional mantra of direct agencies the world over: 'People will always open a letter addressed to them' has become a fallacy.
The current sad state of affairs contrasts with the bright vision offered to marketers back in the 70s from visionaries like Lester Wunderman. Direct marketers were set to revolutionise the world by targeting tightly defined customer segments who were identified as having particular needs and preferences.
A relationship would be built between marketer and consumer over time and the potential to understand customers, provide information, and build brands was enormous.
Direct campaigns rarely achieve these laudable goals. Instead, the true potential of direct marketing has been drowned out by a plethora of non-targeted, non-valued, non-helpful junk designed to instigate a single transaction. Brand managers must now offset the power of direct marketing against the stigma that this unpopular media confers on their brand should they use it.
The Direct Marketing Association (DMA) currently self regulates all direct mail. Its mission statement speaks of "maximising value for our members, while maintaining and enhancing business and consumers' trust and confidence in the direct marketing industry". With 21 billion items in circulation yearly in the UK alone, it would seem that representing both the hunter and the hunted has proven to be impossible.
Under pressure from the government, the D...
ROI : Branding Strategy Insider
I am tired of hearing some business people say that there is no way to correlate business results with marketing expenditures, implying that marketing is an expense with no corresponding return. Some other business people are slightly more charitable, and say that there is no way to measure direct results. This is wrong – at least for direct response marketing, including direct response marketing via the Internet. (Many direct marketing web sites even offer free direct marketing ROI calculators.) For other types of marketing – this is partially wrong.
There are a few important components to measuring the results of marketing programs: (1) being clear about the program’s objectives upfront, (2) being sure that there are ways to measure results against the objectives, (3) measuring those results, and (4) evaluating the program’s results against the objectives. This is a closed loop system.
It is also important to keep in mind that there are marketing programs with long-term results such as brand building and there are marketing programs with short-term results such as direct response marketing and sales promotion. You must be clear about which ones each marketing investment is intended to achieve.
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