Presentation on theme: "Creating Value. Purpose and Mission Sales department purpose = Maximize Revenue Sales department mission = get and keep customers – Must have a meaningful."— Presentation transcript:
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 1 To get results for advertisers 2 To develop new business 3 To retain and increase current business – Pre-sell – Up-sell 4 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 specialists want 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 customers 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 Warners 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).www.charleswarner.us
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
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 have continuity, not flighting. Frequency is not the key, recency is (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), dont 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 clients 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).www.charleswarner.us – 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.