Transcript No Slide Title

Creating Value
Purpose and Mission
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Sales department purpose = Maximize Revenue
Sales department mission = get and keep
customers
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Must have a meaningful value proposition
Value Proposition
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To create value, you must have a value
proposition that is customer focused and
solutions based.
Example value proposition:
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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.
Objectives
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Sales department objectives
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To get results for advertisers
To develop new business
To retain and increase current business
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Pre-sell
Up-sell
To increase customer loyalty
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“Under-promise” and “over-deliver”
Strategies
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Sales 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 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
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To provide the best research, information, and advice
To be customers’ marketing consultant
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Agencies = CPPs/CPMs/CPCs
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Typically experienced specialists want only price and
service
Know the person – a people expert
Advertisers = Results/ROI
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Typically inexperienced generalists want to know how
to buy and use your medium.
Advertisiers want ROI
Know marketing – an advertising and marketing
expert
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Marketing is more complex.
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Takes more time
Requires more knowledge of the customer’s business
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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
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Sell the value of advertising versus promotion.
What is the difference?
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Advertising tells consumers why to buy – has longlasting 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
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Features, advantages, and benefits
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Sell advantages
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Company advantages
Product/Service/Medium advantages
Service Advantages
Position benefits according to personal needs.
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Use a Benefits Matrix (www.charleswarner.us, in
Papers by CW section).
Creating Value: Selling Solutions
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Know your customers’ marketing goals (or help
define them).
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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
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
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) KISS
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.
Must maximize touch points.
Plan Media To Meet Advertising
Objectives
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Thin Market
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Only about 1-4% of consumers are in the market for
a specific product at any one time.
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Thus, critical to reach them when they are most receptive.
To assure reaching consumers when they are receptive,
must have continuity, not flighting.
Frequency is not the key, recency is (reach
planning).
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Best media for recency: mobile, radio, outdoor.
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).
Strategy = Create Value
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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 reputation
Cumulative advertising and promotion
(differentiation)
Strategy = Create Value
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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
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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
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Ideas (Added Value)
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.”