1. Putting Below-the-Line Marketing to the test! Seminar 1 Building Relationships July 2010

2. First Things First

3. Who am I and why should you you listen to me? I give you 25% of your mark And I’ll fail you if you don’t I have been where you are I went through the system I have been working in Advertising for 3 years It’s not as great as it seems Industry is mean - you need some muscle I’m gonna teach you what it took me 3 years to learn

4. First Things First Why are we doing things this way? There is a gap in the market Love Entrepreneurship Local Communities need help Get bums off seats! Apply Theory Get Experience Previous years didn’t work Testing this out Make Some Money!!!

5. First Things First Please do not contact me at dylan@bline.co.za.dylan@bline.co.za May new email address for this competition is: bline.experiment@gmail.com

6. Marketing Strategy

7. Its an Ever Changing World! Find on Facebook page wall

8. Introduction Small businesses need help responding to the ever-changing environment. Especially in the current economic crisis. We are young, in with the times, and have marketing skills. We must come along-side our communities and support them. This competition hopes to mobilize you and teach you how to do just that. And do not think of this philanthropy or volunteerism. Marketing is based on finding a need and filling it. And there is a large market in need of advertising support, And we are going to build profitable relationships with those in it.

9. In good times business people want to advertise. In bad times they have to. If you want to keep your business small, it’s easy. Don’t advertise. Advertising is the mouthpiece of business. Many a small thing has been made large with the right kind of advertising. Stopping advertising to save money, is like stopping your watch to save time.

10. New Agency Development So, to build profitable customer relationships, we need to develop a brand that can be-friend them. Every Mini-agency will need some marketing focus We cannot possibly serve all the customers in the small- business market. So, to create some perspective, we will develop a marketing strategy for our new mini-agencies together. Does everyone have a name for their agency?

11. The Market “A Market is the set of all actual and potential buyers of a product or service. These buyers share particular needs and wants that can be satisfied by the same solution.” What are the shared needs and wants of our market?

12. Segmenting the Market What are the different segments? Demographic: Turnover of R1 mil or less per/ year (small- medium) Geographic: Cape Town (close to where you live) Psychographic: Retail, wholesale, manufacturing, or a small service. (preferably location based) Behavioural: Those who do not do any advertising yet (a business where you can add real value)

13. Targeting Which segments are the most attractive? In which segments can we generate the greatest customer value profitably and sustain it over time? Small, local enteprises Choose a specific industry that you are passionate about (Fashion, sport, food&beverage, wellness, etc) The key is to target an industry by starting with one client and then building your experience and portfolio in that industry as you go along Remember: Marketing is not really an industry in itself. It is a skill set that can help you serve the industry you love. (Example: I love Entrepreneurship and Higher education, and my marketing skills help me to serve it, and grow in it. Like I am doing in this competition)

14. Porters 5 forces What is the level of competition in the market? Buyers Power: None really - empower them Potential Substitutes: None really (Only expensive ad agencies on one end, and small printers and designers on other) Strength of suppliers: Not much at the moment (financial crisis) Barriers to Entry: No huge barriers - Only our time, money, petrol, expertise, experience, and the market’s perceptions. Which can be overcome easily. Overcoming barriers: You can share the cost amongst yourselves; I have the expertise to help you; you will grow in experience; and you can educate the market to overcome their fears and wrong perceptions.

15. Core capabilities Do we have what it takes to compete in this market successfully? What can we offer based on: Expertise: understanding of youth market and new technology/media, creativity, strategic thinking, contacts, networks, unique advertising ideas Resources: Computers, internet, textbooks, transport, contacts, Dylan, B-Line, Mr. Duffet, suppliers, wider network Location: Flexible (coffee shop or @ client office), Mobile, laptops, Cell Phones (You are the business, where you go, advertising will happen) Time: Flexible, 2-3 years of studying left Team: Support one another, Advertising family

16. Positioning How should we position ourselves to offer superior value? Identify a set of competitive advantages upon which to build positioning. Holistic affordable advertising solutions * (Marketing Leadership) Fresh advertising ideas Dedication (only clients for the moment), one-on-one Devote time and effort to growing their business (supportive relationship) Tangible results & Measurable ROI Tailor-made, customisable solutions Simpler way of approaching increasing sales Better than alternatives (small printer and big agency) and better option to try in current financially difficult situation. Faster way of communicating, and hopefully increasing the speed of doing business

17. Marketing Mix (4 P’s) Product: What goods and services combination will we offer the target audience? Affordable Advertising consultation & solutions (service consisting of a range of “products”) like:  Targeted Exposure - e.g. consists of:  A website (in with the times)  Basic advertising material (brochures)  Increased Sales - e.g consists of:  Promotions  CRM database & better communication *Tailor made packages

18. Marketing Mix (4 P’s) Price: How much money will customers have to pay to obtain the product? Time, Trust, & Information Understanding, Grace, and Patience No retainers (like big agencies) Mark up on production Initially, no consultation fees. Eventually, hourly rates, and so on.

19. Marketing Mix (4 P’s) Place: What activities will make the product-service available to the target customers? Face to face At client offices or at coffee shop Car and other transport Computer and other IT facilities Email and Skype Blog or website Facebook & Linked In Telephone and cell phone

20. Marketing Mix (4 P’s) Promotion: What activities will communicate the benefits of our product-service and persuade target customers to buy? Build a profile on Linked In & on hard copy Credentials document (what done before) Personal selling (educate client) Promotion Letter/ leaflet (DM) Promotional video (you tube) Website or blog Testimonials (Later)

21. Integrated Marketing Communications So why are we doing this strategic planning together? We need to send out a clear, consistent, and compelling message to the target audience. There can be no conflicting messages that confuse people. We must all make sure that we communicate effectively and be sure of our positioning to grow a good reputation.

22. Managing the Marketing How will we manage the marketing effort successfully and efficiently? We will manage it together You will communicate with me a lot Everything will go through Dylan Stay in contact with your client Use email to keep Dylan, Client, and Rodney infomred

23. “Marketing is not an event, but a process… It has a beginning, a middle, but never and end. You improve it, perfect it, even pause it. But you never stop in completely.”

24. Customer Relationship Management How will we make sure that we do not just get new clients, but that once we have them, we grow and maintain them effectively over time? Develop and maintain a good working relationship. Be real with client Make good impression Keep giving new ideas Upfront loyalty Think practically Befriend them Keep in contact with Dylan and Client

25. Overall Objectives So what is the overall goal of going after this market in this way? Get experience Network Make money Understand the procedure Serve the market

26. Building relationships

27. FNB: How can we help? Find on Facebook group wall

28. How do we help? Like Imisch, we need to spend time with our client. We need to get to know their business - (Feel the pig, hold the chicken.) So that we can develop the best solutions We need to go to the ends of the earth for our clients We are here to serve them, not take from them.

29. Communication Do not bombard your client with information Think about what you need before you contact them Do stress in front of them. Always keep your composure But be honest about things. If you mess up, and you will, do not stress, just sort it out and be open with your client. They are more interested in how you handle problems, than in the problems themselves. Also, keep them informed. They like to know what’s going on. Go to their offices and meet with them regularly. Agenda’s: This is a list of things that need to be discussed in a meeting Contact reports: This is the minutes of a meeting you had with the client. Once the meeting is over, you type it up with columns for item, action, person, date. This keeps everyone one same track.

30. Contact Report Example

31. Practical Tips Think of this process as an opportunity to educate your client on the basics and importance of marketing. Agencies are constantly trying to inform their client about best- practice, new developments, and ways of doing things. If your client understands why they need to do something, and the benefits attached, they will be more likely to employ you to develop and implement it for them. So take every opportunity to give your client practical advertising tips. Stay up-to-date with the latest trends in advertising. *Please view the Facebook group for articles on this.

32. Practical Resources memeurn.com foursquare.com linkedin.com Old Spice Social Media Campaign fourhourworkweek.com (Tim Ferriss) sethgodin.com (Check out free stuff) shopify.com

33. Reports Develop a report at the end of every phase to document the progress, successes, and difficulties of that phase. Agencies need to keep on evaluating their programme and relationship with the client, brand, and customers. Reports give an overview of how a mechanism worked or didn’t work. It is important to write up reports and give to your clients after any phase in a relationship. Reports are used extensively in debriefing meetings after a campaign has run its course. They are crucial for evaluation, control, and advertising management.

34. Process & Timing Explain how things will work. People only fear and get nervous when they are uninformed. So be sure to keep them informed, and make sure they understand. Maybe you can develop a little calendar for them, with all the important dates. Planning is something you must do with your client. So that everybody is on the same page.

35. Budgeting Try not to scare your client. They do not like to hear the word MONEY! So, initially, explain to them that your consultation is free, but that if any printing is done, you will add a small mark-up. Mutually beneficial & profitable relationship that grows - do not have to have everything figured out in the beginning. But, we will get into more detail closer to the time. For now, just ask them how much they would be willing to spend on advertising. Possibly ask them based on the different parts of advertising (basic material, promotion, experiential, etc)

36. Return on Investment (ROI) Explain to your client the possible return on investment for the money they are spending. They want to know that your strategies will work. To work this out, you will have to apply some financial techniques. Like: Break-even analysis (how many products do we have to sell to cover the cost of advertising. And once this limit is reached the rest is profit, and therefore a good ROI) This may require that you understand the businesses mark-up on products, so that you can work out projections for the advertising. Please be discreet and sensitive in this area. Businesses are a bit touchy about their financials.(Non-disclosure form) Build trust and respect with the client first.

37. Invoicing Before any material can be produced, an invoice must be given to the client. Also, 50% of the total amount will have to be paid before printing can commence. This is to ensure that clients take our work seriously, and that we have a deposit in case a mishap occurs, or the client cancels. (Which can happen and does) I will be managing the invoicing process. So please communicate with me when we get to this stage. Do not just ask the client for money straight away. All money will go through me for now.

38. Pricing The way we are going to make money out of this is by marking up the material production. We will add a 20% mark-up to all printing. Example: 1000 leaflets @ R2 per leaflet = R2000 2000 + 20% = R2400 R400 * This is still to be finalized.

39. Making Money The key to this competition is to teach you how to consult and grow your own client base. It is important, that we continue managing and growing your client base once we are finished with the competition. The goal is to eventually have many small clients all ordering small amounts. But this will take a lot of hard work, dedication, and clever consulting.

40. Marketing Information Audit There is information you need to be able to consult properly. Do in-depth secondary research (Prac 1) Secondary Research SWOT Analysis Evaluation of all the marketing information Please do not just send your client a letter asking for all the information. The best way to do it, is to develop a IDI questionnaire and then send them a letter explaining that you want to interview them. List some of the topics you will cover. Then, meet with them, and record the interview on your phone. Transcribe the interview and use it as data. Go to Facebook group for a thorough questionnaire layout

41. Proposals I will need four sections to your proposals 1. Consumer Research proposal, quote, and post implementation evaluation report 2. Basic advertising proposal & quote 3. Promotional proposal & quote 4. Experiential proposal & quote

42. Consumer Research This is the first aspect of BTL marketing we will implement for the client. It comprises of two mechanisms: A customer survey mechanism and a CRM mechanism. Customer Survey: This is a questionnaire that determines customer satisfaction. How was you experience? What would you recommend? CRM mechanism: This is a mechanism that generates customer data for the purpose of relationship management. What is your email address? When is your birthday? * Please see Facebook group for notes and articles on this

43. Basic Advertising Proposal To accompany these mechanisms, the business may need a range of basic advertising as well: Business Cards Information pamphlet Credentials document Website Etc.

44. Promotional Proposal Once they have the needed basic advertising materials, they will be ready to launch a promotion to increase sales and grow their client base. This may involve a: SMS Competition Buy one get one free promo Etc.

45. Experiential Marketing Proposal And then, once they have grown their client base, are running little promotions now and again, have a CRM mechanism in place, and have all the advertising material needed, They can launch an experiential campaign to get all their current and potential clients together in a brand experience that grows loyalty.

46. Mini-Agency Relationships

47. Agency Staff It is very important to have the right professionals working on an advertising campaign There are specific tasks that are critical to the success of the campaign These should not be overlooked in your team arrangements You all have been working together for almost 2 years now You should have a fair understanding of one another’s strengths and areas of knowledge There are six “departments” that are essential and should therefore be implemented in your teams as well Each individual will be responsible for one or more specific tasks Each will guide the group to the respective goals of that position

48. Agency Staff Researcher - The researcher is responsible for all possible research, analysis, evaluation, processing and recommending Strategist - The strategist uses the researched information to plan all the concepts and develop the mechanics of the campaign Traffic - Traffic is the link between all the members and acts as the organizer of the group by relaying information, planning meetings, coordinating and dealing with admin

49. Agency Staff Account Executive: This person is the link between the client and the agency and is responsible for developing the relationship. This is the only person who liaises with the client Production - Production is in charge of costing and producing the job. This person will source all the quotes needed and plan for the material to be printed and made Designer - The designer is the visual marketer. This person takes marketing concepts and transforms them into attention grabbing and experience giving elements

50. Work Flow Model Once the current briefing has been completed, there is a specific sequence to developing a successful campaign. This process ensures that one stage flows to the next achieving optimal growth and efficiency. As you progress as marketing professionals, you will witness this process becoming 2 nd nature to your line of thought and campaign development planning. Once the marketers have planned the campaign, it is their responsibility to develop a thorough design brief for the artists to work from. It is advisable that the artist has an active part in strategising with the marketers, as it adds greater dynamics to the process and therefore the overall success of the campaign.

51. Work Flow Model Briefing Analysis of Brief Research Create Objectives Create Platform Develop Strategy Develop Tactics Brief Designers Assist Designers Cost Job

52. Communication Working space Creative meetings Meet Often Email & Internet Cell Phones Keep Informed Work Fast Work Smart Do whatever it takes

53. B-Line Relationship I will be your point of contact in B-line I have a good relationship with the CEO, John Withers, as well as with all the other staff members. Please do not contact anyone else in the company without my permission. I will be here to guide you and advise you on what to do and how to do it. Please know that I am for you and want to help you make this competition a huge success. Have grace for me.

54. Supplier Relationships I will also be your point of contact with suppliers I am currently developing a relationship with a printer, where we will get all our work printed hopefully. If you would like something specific produced at a different supplier, please make sure that you speak to me first, I can then contact them and explain the competition Do not contact the suppliers direct please.

55. What’s Next Primary & Secondary Research (Prac 1) 1.Internet research & IDI with client 2.CRM & Customer Survey Proposal Date: Needs to be completed in week of 2-6 august I will meet with every group this week to discuss the individual clients and ideas. I will also meet with each group in the week of 9-13 August to prepare for research implementation.

56. Last but not Least

57. Video Portfolio In edition to your written portfolio, you will have to hand in a video portfolio as well. What is a Video Portfolio? Your video Portfolio will be a collection of video clips that you record with either your cell phones or camcorders during the consulting process. Think of it as a video documentary of the whole experience Choose one person to do all the filming (possibly the person with the highest MP camera phone)

58. Video Portfolio What things would you be filming? Business processes Customer interviews Creative meetings Designers at work And anything else you think is interesting You will also eventually develop a short you tube ad for your client. So make sure you get enough footage throughout your time with which to make it.

59. Video Portfolio - Video one Your first task is to make a 1 minute video clip of your client. You must post it up onto the Facebook for all to see. You must ask them 5 questions. Upload by 6 August 2010! Please go watch the video brief on the 2010 B-Line Experiment Advertising Facebook group to know what questions to ask. Also, make sure that you sign up to the group so that you know when the next video brief comes out. I will also be posting other links and information about resources, ideas, and instructions for the competition. Please feel free to post up any comments, or suggestions for other group members.

60. Final Questions???