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Creating Value
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Sales department’s purpose = Maximize revenue
Sales department’s mission = Get and keep
customers
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To accomplish these, an organization must create
value for its product/service with a meaningful value
proposition
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A value proposition that is customer focused and
solutions based.
For example:
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“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.”
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Sales department’s objectives
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To
To
To
To
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get results for advertisers
develop new business
retain and increase current business
increase customer loyalty
“Under-promise” and “over-deliver”
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Sales department’s strategies
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To sell solutions to advertising and marketing problems
 Intense customer focus
 Not your bottom-line focus
To reinforce the value of advertising and your medium
To create value for your product
To become the preferred supplier
 To establish, maintain, and improve relationships at all levels
of the client and agency (keep agency informed)
 To provide the best research, information, and advice
How To Get and Keep Customers
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Agencies = Want CPPs/CPMs/CPCs
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They are experienced specialists who want only price
and service.
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Know how they want to be serviced.
Direct clients = Want results
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They are often inexperienced generalists who want to
know how to buy and use your medium.
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Know marketing.
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Marketing is more complex.
– Takes more time.
– Requires more knowledge of the customer’s
business.
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Look at Ad/Sales Ratios.
– Library - www.charleswarner.us/artindex.html
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Look at 100 Leading National Advertisers (Ad Age Web site
Data Center)
Use Discovery Questions
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Papers by CW - www.charleswarner.us/indexppr.html
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Sell the value of advertising vs. promotion.
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Advertising tells consumers why to buy a product –
long term branding effect.
Promotion tells consumers when to buy a product –
short-term effect – like a drug high.
Increasing advertising by 1% is more profitable
than lowering price by 1% to increase volume.
Creating Value
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Sell advantages
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Company Advantages
Medium Advantages
Product Advantages
Service Advantages
Sell benefits
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Position according to personal needs.
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See Human Needs List
See Benefits Matrix
Creating Value: Selling Solutions
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Know your customers’ marketing objectives (or
help define them). See Discovery Questions.
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Increase
Increase
Increase
Increase
Increase
Increase
Increase
market share
traffic
sales
profit margins
share of mind
stock price
share of voice
Position your offer to fit customers’ objectives.
Creating Value: Selling Solutions
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Know your customers’ primary marketing
strategy (or help define it).
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Differentiation
Focus (niche)
Low-Cost Producer
Position your offer to fit customers’ strategies
(marketing and creative).
The Objectives Of Advertising
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To Inform
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To Persuade
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Specific information
Creating the perception of advantages.
Unique Selling Proposition (USP)
To Remind
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Continual reminders of benefits
Advertising Objectives
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Informing
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Create awareness
Communicate information
Persuading
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Try the product
Use more of the product
Advertising Objectives
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Reminding
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Adoption of a product (habit)
Reinforcement
No loyalty
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Brands must stay competitive every day, continuously.
Position your offer to fit customers’ advertising
objectives.
Create Value
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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).
Value Signals
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Value, like reality, is a perception
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The price paid is a combination of real and
perceived value.
Buyer perception is reinforced by value
signals:
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Brand and company reputation
Cumulative advertising and promotion
(differentiation)
Value Signals
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Sales promotion material and media kits
Case studies of advertiser success
Advertiser list
Telephone courtesy
Ethical practices
Price (high = quality)
Management visibility, credibility
Strategy = Create Value
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Spend time in client’s business
Client brainstorming
Creative ideas (campaigns, positioning, brand
extensions, production)
Sales presentations
Salespeople
What Buyers Want
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Ideas
Communication (targeted, helpful)
Respect for their time
Run as ordered
Responsiveness (speed, accuracy)
Ad Age 2007 Sales Survey Report
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Advertising Age Reported on an Advertiser
Perceptions Survey of 2000 Media Decision
Makers:
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“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.”
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In other words, what buyers and clients want
are salespeople who create value with:
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Thorough knowledge of their business and priorities
Thorough knowledge of the salesperson’s industry
Thorough knowledge of the salesperson’s product
Superb, concise communication skills
Outrageously good, fast service
… not always the lowest price.