Secrets to Success in Recessions: Expand Marketing

Authoritative research and the five lessons I have learned about marketing and recessions in my 30+ years experience.

 

Authoritative research continues to show businesses are self-destructing when they cut back on marketing in downturns. If implemented and evaluated properly, marketing creates a return on investment in multiple ways.

More on that later. Meantime, suffice to say recession or not, a good marketing approach requires intensity and is based on thought leadership about every facet from social media to internal company communications. And marketing, of course, includes strong public relations.

If anything, maintain your marketing investment and expand your PR efforts.

Sports provide great metaphors for business. As in any sport, remember this basic principle: Write a great game plan and attack…attack…attack.

Actually, I was prompted to write about this topic again when I enjoyed reading a commentary by award-winning public relations expert Devon Blaine in the blog of a strategic financial consultant, Joey Tamer.

Ms. Blaine provided documentation on why it is unproductive to stop or trim marketing during a recession.

“Though this strategy might seem to make common sense, recessions are times that call for uncommon business wisdom,” wrote Ms. Blaine, president and CEO of the The Blaine Group, Inc. in Los Angeles. “Recessions reward the aggressive marketer and penalize the timid one.”

In other words, timorous businesses forego an opportunity for niche leadership and to expand their market share.

Authoritative Study

Ms. Blaine cited a noteworthy study, “Advertising & Marketing During An Economic Downturn,” by David Stanley of Industrial Equipment News. It analyzed the situations of more than 1,000 manufacturers in what’s called “Profit Impact of Market Strategy” (PIMS).

Far too often, studies appear to be self-serving for special interests. But this study, www.tinyurl.com/lokgyd, is objective and unique. It is from The Strategic Planning Institute in Cambridge, MA, which describes itself as a non-profit membership association that promotes “strategic business management.”

Actually, The Strategic Planning Institute, www.pimsonline.com, originated as an internal planning project at General Electric. Then, from 1972 to 1974, it evolved into a Harvard Business School project.  

The PIMS study concluded that bold marketing in a downturn resulted in strong performance while tepid marketing had undesirable consequences. In addition, the higher marketing investments did not hurt profits for the short-term.

1990′s Study

“Penton Research Services reports that shortly after the 1990-91 recession, Coopers & Lybrand, in conjunction with Business Science International, surveyed CEOs from growth companies about the effect the recession had on their profit growth and the actions they had taken in response,” cited Ms. Blaine.

So what were the conclusions from the second study?

“A strong marketing program enables a firm to solidify its customer base, take business away from less aggressive competitors, and position itself for future growth during the recovery,” she concluded.

Incidentally, I am very familiar with the capabilities of Devon Blaine, www.blainegroupinc.com, and Joey Tamer, www.joeytamer.com/blog. You can take the bank anything they write or say. We are all members of Consultants West, www.consultantswest.com, a roundtable of veteran consultants that meet regularly in Los Angeles.

Again, I agree with Ms. Blaine. Having experienced five major economic downturns in my career, I know there is one inescapable fact about marketing and recessions. Companies that view marketing strictly as a percentage of their budgets miss opportunities for growth. Successful companies look at the short and long-term ramifications.

During downturns, good companies that cut marketing budgets soon learn they do not retain dominance in their marketplace, and they will learn they have lost market share once the upturn begins.

From the Coach’s Corner: Not to be redundant and to add to Ms. Blaine’s points, in my 30+ years experience, here are five salient lessons I have learned about marketing and recessions:

1. A quality company that maintains stellar marketing in a recession succeeds. But it is imperative to continually evaluate the company’s marketing return on investment.
2. If a company does not provide enough value or is a substandard company, marketing does not help them. This has been true in all industries – from the auto industry to law firms. So this means taking a sober look at the value of your company’s products and services.
3. A recession is a terrific opportunity to take a big picture snapshot of a company. It is important to look a client’s total situation – such as in human resources or pricing – and come up with solutions.
4. The best companies are proactive about planning and execution in good times and bad. Many companies show poor judgment about pricing and cost-cutting in marketing. It is unproductive in a downturn to slash prices in a knee-jerk fashion. A better approach for a company is to continually test marketing ideas – always be on the offensive. Automatically slashing prices without assessing the competitive landscape can undermine your brand’s value, and make it difficult to successfully raise prices later.
5. Companies that cut marketing investments fail to sustain their “Top-of-the Mind Awareness” and unnecessarily lose revenue in the recessions, and they endanger their profitability when economic conditions improve. Indeed, it takes more resources – time, energy and money – because they have to work too hard just to re-establish their brand.

Marketing: Why One Bank Fails, Another Succeeds

 

Like most businesses, you can look at the branding of a bank and forecast how it will fare. Poor branding is often the tip of an iceberg – an indicator of management ineffectiveness and lack of discernment.

And for financial institutions, this is especially true. Conservative appearances and customer empathy are important when handling customers’ money.

A case-in-point: Venture Bank in Lacey, WA vs. First Citizens Bank & Trust in Raleigh, NC.

First Citizens bought Venture Bank’s $874 million in assets and entered into a share-loss transaction for $715 million of the assets and state regulators closed the Washington bank. Venture Bank, with 18 branches, had $970 million in assets and total deposits of $903 million.

There are reasons why Venture Bank failed and First Citizens has succeeded.

With information from a published report, www.theolympian.com, here’s a brief history about Venture Bank and a couple of observations by me:

• Venture Bank had its origin as Lacey Bank in 1979 and changed its name to First Community Bank two years later.
• First Community merged with Citizens First Bank in 1993 and bought Prairie Security Bank four years later. It acquired Harbor Bank of Gig Harbor in 2002.
• First Community changed its name to Venture Bank in 2003.
• In March, 2005, the bank made a questionable decision and sponsored a concert with The Ventures, a rock ‘n’ roll band, in a bid to promote the group into the Rock & Roll Hall of Fame.
• In Aug., 2005, the bank bought Redmond National Bank and got a new CEO when it rehired Jim Arneson who had been the Redmond bank’s president.
• In May, 2007, Venture Bank publicized its record Q1 income of $3.2 million.
• In March, 2007, Venture moved into its new $13 million headquarters in DuPont, just up the I-5 corridor. Not to be hyper-critical, but the reception area resembled a lavish, highly secured mausoleum.  
• The bank’s holding company, Venture Financial Group Inc., announced plans for an initial public offering in July, 2007.
• In Feb. 2008, Venture and the Tacoma Rainiers (the Seattle Mariners AAA farm club) signed a lucrative six-figure sponsorship package. (I love baseball, but I recall wondering why. It was great for the ballclub. However, I recall thinking Venture Bank would never get a good ROI.)
• Seven months later, in Sept., the IPO was withdrawn.
• In Nov., 2008, Venture announced it was suffering from its worst quarterly loss ever.
• Five months later in 2009, the FDIC told Venture Bank it needed $20 million more in assets.
• Starting in early 2009, Venture’s holding company revealed its SEC-required earnings reports were going to be late.
• The accounting firm, Moss Adams, informed Venture of its withdrawal as the auditing firm.

Venture’s eccentric marketing

As for the branding, Venture Bank’s Web site also tells quite a revealing story: The bank was guilty of eccentric marketing.

The home page of one Venture Bank Web site, www.venturebankonline.com, contended that “SMALL IS POWERFUL.” It showed pictures of a cayenne pepper, matchbook and dart frog. Under the pictures were these captions:

• “Cayenne peppers are only 6 to 8 inches long but are known to pack a serious punch, up to 50,000 Scoville units of heat.”
• “Since 1892, when it was first patented, the common match has ignited the cook fires of the world, the fires of imagination and the fuses of powerful explosions.”
•  “One milligram of the poison dart frog’s venom is enough to kill two African elephants.”

But here’s more. Even after state regulators shut down Venture Bank, a second Web site was still also online:  www.venture-bank.com, which used this branding slogan, “As Independent As You.”

At best, this is a nebulous slogan in the eyes of bank customers.

The bank’s home page did a poor job of reassuring visitors and customers that their welfare is important and that the bank will care for their money. Business owners and consumers do not want maverick bankers handling their money.

Ostensibly, Venture’s eccentric Web site – with the cayenne pepper, matchbook and dart frog –was the original site. But no one was aware of it to even pull the plug.

For me, as a former broadcast journalist, Venture Bank’s situation – promotion of The Ventures, lavish headquarters and questionable sports-promotion investment – is reminiscent of when I reported on the S&L scandals and the Friday night seizures of failed financial institutions in the 1980s.

No one has accused Venture’s management of scandalous behavior but the bank’s appearances, over-spending, and resulting collapse brought back memories.

In particular, I recall the reporting the collapse of State Savings in Salt Lake City. The principal, J. William Oldenburg, was accused of abusing the thrift’s assets. To a larger degree than Venture Bank, he created unfavorable impression, too.  He drove a Rolls Royce and had been the flamboyant owner of the L.A. Express in the defunct United States Football League.

First-Citizens Bank 

Contrast Venture Bank’s behavior with First Citizens Bank:

Visitors to www.venture-bank.com were directed to First Citizens’ Web site, www.firstcitizens.com/venture where a message from Chairman and CEO was posted:

“On behalf of First Citizens, we welcome you to our banking family. As a First Citizens client, you’ll benefit from our 111 years of experience in the financial services industry, our commitment to exceptional service and our reputation for strength and stability. We’re excited about serving our new communities and building a rewarding, long-term relationship with you.”

Here’s more of First Citizens’ welcome to Venture customers:

“Sound business practices and stewardship of customer deposits are among the highest priorities of our bank. We have more than $14 billion in assets and more than a century of experience serving the financial needs of our clients. First Citizens Bank is nationally recognized for overall stability, security and high levels of customer satisfaction. We’re proud to welcome you to our banking family and assure you that your money is safe with us.”

So, in conclusion, my question is this:  As a bank customer, do you want to read about cayenne peppers, matchbooks and dart frogs? No.

From the Coach’s Corner, if your nonprofit needs new branding and you have a lot of people to please, here’s a tip:  

The best branding slogans are the result of involving all stakeholders – employees, beneficiaries, donors and community leaders. A branding discussion generates an exciting “buzz” for your nonprofit. It creates a chance for everyone to be heard and will be a catalyst for more support and synergy from stakeholders.

That’s why I suggest a survey and getting someone to donate a nice prize for the winning entrant, which will help reinforce your nonprofit’s identity.  A poll should include a selection of three to five possible slogans, and a space for write-in options. I’d make an announcement at meetings, insert an item in the newsletters, query your beneficiaries, and write a press release for distribution. I also suggest forming a selection committee including marketing experts from the community who understand your mission.  

They will understand that the slogan needs to answer the basic Marketing 101 question, “so what?” that every person subconsciously asks.

Remember every buying decision is based on emotion. Pique the emotional interest of your target audience – donors and beneficiaries. If the customer can easily make a favorable decision after seeing the slogan, you’ve got a winner.

PRESS RELEASE: No.1 Topic at Biz Coach Site is ‘quite a Surprise’

Press Release Celebrating The Biz Coach’s First Month Anniversary: Economic, political liberties are surprising No. 1 topic of visitors

 

Sept. 9, 2009

Yes, users are reading the performance-enhancing strategies at this new business-coaching Web site. Informative articles range from planning to technology. However, data shows the overwhelming visitor preference is public policy – and how it affects economic and political liberties.

Based in the greater Seattle area, Biz Coach Terry Corbell knows what to write for readers at The Biz Coach: www.bizcoachinfo.com, “Proven Solutions for Maximum Profits.” After analyzing the first month’s results of the site formally launched on July 29, he is happy with the reader response.

“But it is quite a surprise to learn the extent of the popularity of the first column dealing with economic policy, and economic and political liberties,” Mr. Corbell said. “I’m also surprised to learn where those readers live.”

The most-popular column suggests that governments at all levels in Washington state can help create jobs and set a leadership example for the rest of the nation – if they take new actions for economic development. The No. 1 column has a clear lead over the others – 20 times more readers than the second-place column.

“Sixty-five percent of the public-policy-minded readers are from the U.S. Five percent of them live in Washington, but 19 percent live in Michigan and 16 percent in California (70 percent of California readers live in the Silicon Valley),” Mr. Corbell added.

The most-popular column is entitled, “Analysis: Steps for Economic Success in Washington State.” It was the kickoff column to launch the site and the column continued to gain in popularity even though the site is updated every other day with a new column.

The Web site’s other 10 most-popular columns:

1. Case Study: Mistakes Companies Make When Losing Profits

2. Airbus-Boeing Rivalry: Lessons in Strategic Planning

3. 5 Safety Measures to Thwart Mounting Social-Network Attacks

4. Need a Job? Recession and Offshoring Don’t Have to Be Obstacles

5. Planning an Event? Consider 25 Emergency Preparedness Tips

6. What No One Tells You about Raising Investment Capital

7. New Strategies for International Trade

8. How Can Micro Businesses Position Themselves to Win?

9. Cause-Related Marketing Can Increase Sales by Double Digits

10. Web Security Checklist, Warning about Mobile Banking

As a business-performance consultant and profit professional, Mr. Corbell’s Web site provides proven solutions for maximum profits on eight topics:

• Planning

• Operations

• Marketing/Sales

• Finance

• HR

• Tech

• Public Policy

• Wall Street

The site also provides late-breaking video reports on each hour’s featured business story. Other news-video categories include:

• Economy

• Regulatory Compliance

• Personal Finance

• Sci-Tech

• Health

• Press Releases

The average Biz Coach visitor returns twice, reads more than six pages, and reads for more than six minutes each visit.

The top 10 countries in visitors:

• U.S. (80 percent)

• Canada

• Austria

• China

• Philippines

• Great Britain

• Sweden

• France

• Australia

As one of the Northwest’s longest-running columnists, Mr. Corbell has written 450+ business-coaching columns since 2001 for several media Web sites. He currently writes an Internet business-coaching column, The Biz Coach, for the Money News page at Seattle’s KIRO (www.kirotv.com), the “2009 National Edward R. Murrow Award Winner for Overall Excellence.”

Many of Mr. Corbell’s business-coaching columns are updated and archived on The Biz Coach Web site, which was developed by Solid Technology, www.solidtechnology.com, “Trusted Experts, Solid Results.” in Portland, OR.

He is a member of Society of American Business Editors and Writers (SABEW). 

The New York Times featured Mr. Corbell twice in 2008. For some his business tips, simply Google each of these headlines:

• Been There… Done That… Here’s How

• Advice on Taking an Entrepreneurial Leap

As a profit professional, he developed The CMS Approach. To relieve a company’s financial stress, The CMS Approach includes a financial turnaround program on a pay-for-performance basis. Mr. Corbell provides complete solutions for a small retainer and one percent of the net-profit increase.

For external challenges, he provides a full marketing program from public relations to advertising and guarantees a 10 to 55 percent higher return on clients’ investments. He has deep media relationships and includes strategies such as social networking to newsworthy senior-executive videos, and TV commercials.

His firm, CMS Associates LLC, www.cmsassociatesllc.com, has been long-known for providing “Solutions to Increase Revenue.” CMS is an excellent company with an outstanding record of success since 1992. The firm has insights, systems and strategies to save companies time and money while increasing revenue.

Mr. Corbell is also focusing on economic development. He and KIRO are partnering to promote the economic climate of Western Washington communities.

He’s writing a book tentatively entitled, “How to Watch Your Back in the Jungle – Avoiding Business Predators.”

Space for banner advertising on The Biz Coach Web site is still available at reasonable Charter membership prices. In addition to the Web site, advertising for The Biz Coach concept will soon be available on Seattle radio, “The Biz Coach Roundtable.”  

Charter sponsors for The Biz Coach Web site and radio program will receive special incentives and priority red-carpet benefits. For details, visit “Our Services” page: http://www.bizcoachinfo.com/our-services.

Marketing Strategies to Cut Through the Clutter

This includes word-of-mouth promotion and 10 strategies to boost your online presence.

Successful marketing is like air warfare. You have to control the skies with advertising and public relations to soften the target before the sales infantry goes into action.

There are many ways to accomplish successful marketing. But that means cutting through the clutter to overcome consumer overload, and that’s why marketing has become more difficult. Virtually all businesses have been searching for better ways to cut through the clutter of competition.

Change is problematic for marketers, too. You have to be able to adjust to competition and dynamic changes in the marketplace by repositioning your company. You have to have a good sense of timing in knowing when to make changes and allow enough time to for the process to work. But you also need to connect to the past by maintaining your company’s legacy in your customers’ memory banks.

For years we’ve heard about various types of marketing research from segmentation to positioning. Our marketing vernacular has also included demand estimation, distribution channels, price elasticity, and tools for interactive technologies. Not to mention advertising and promotion.

Advertising reminds customers about the benefits of your products, enhances your image, and builds sales. Companies have been searching for something new because the old ways of advertising and promotion need to be complemented with new tools in generating new customers.

So what’s the newest trend in marketing? To complement your TV and Internet promotion, it’s going back to the basics – word-of-mouth marketing. That’s the umbrella term for an infinite number of techniques to make sales. Basically, you need to establish a dialogue. So listen to customers and give them their due consideration, respect and recognition.

With the ever-increasing consumer overload, there’s more fragmentation. Messages are seen and heard everywhere. Focused, key emotional verbiage, frequency and reach of messages are more important than ever for dominance.

Fewer people were going to the movies, but in this Great Recession attendance has picked up. Movie attendees are going to boost their spirits and have little discretionary income.  Otherwise, however, whether it’s a movie or a pizza, consumers are getting what they want, when they want, where they want, and how they want. And they tell their friends all about it.

Keller Fay Group, a word-of-mouth research and consulting firm, reported the average person will talk about products or famous personalities 56 times a week.

Most powerful tool

The most powerful tool is still face-to-face messages. So give your prospectives enough salient incentives to get face-to-face with them.

And give consumers reasons to talk about you in the lunch room. After all, they spend more time at work than surfing online. But the Internet is helping to get people to communicate, especially the elusive 18-to-34-year-olds.

Such Generation Y customers aren’t flush with cash but they’re being targeted by businesses to lay a foundation for short and long-term growth. They’re mobile and want fast, free services. They also heavily use the Internet.

So, blogging becomes important. But it’s more than just writing a blog or two.

To maximize your Internet potential, you need to recruit bloggers and centers of influence – people who can send business your way. So identify them and give such influential people special offers and super customer service. Encourage customers to tell their friends and family members and to blog online. Participate in the blogs and track results of the conversations.

Once you establish a conversation with customers you can co-create a buying decision with them. Along the way, your selling process will be made easier if you create a happy buying environment by encouraging customers to try-and-buy. But that’s not really a new concept. Why else do food companies give away products at Costco or why do car dealers love to give you a test drive.

Online tutorials also result in consumers buying products. That’s another marketing trend that illustrates consumers want to try out products and not be an object of a sales pitch.

Caution: Despite all the hype about the Internet and social networking, remember the news media is still considered to be the most authoritative. So use authoritative radio station or TV station programming as a tool to achieve dominance in marketing.

And stay current on your techniques. Read and study. Remember every so-called expert blogger speaks with finality as though they have the right information. But, often, that’s not the case. Be careful to whom you listen.

From the Coach’s Corner, here are 10 tips to boost online exposure:

1. Determine why your prospective customers should buy from you instead of your competitors. Make sure your page description for the search engines tells your story in 10 words or less.
2. Develop a branding slogan in three to five words that connects with the emotions of your prospects and the results they’re seeking in buying your products or services.
3. Send lots of news releases to the media, especially the operations with good Web sites. It helps if you tie your marketing to a worthy cause. And, radio stations are always looking to trade publicity for products in giveaways.
4. There are free search-engine press release firms if budget is a concern.
5. Study your competitors’ Web sites for hints of how to improve yours.
6. Although they’re not as important as in recent years, insert so-called Meta tags, which are encoded in your Web pages but are invisible to users. These are read by search engines and can help put your site toward the top of the search results.
7. Insert videos on your Web site.
8. Begin an online social marketing strategy with LinkedIn, FaceBook and Twitter and insert informative and/or enjoyable videos on YouTube.
9. Start a blog and make sure your site has Web site enhancement tools for blogging. That includes RSS feeds and social networking, such as Twitter or LinkedIn. You probably need expertise. 
10. Check to see if your Web site is easily accessible to cell phones and other mobile devices. Here’s a free site that will give you a quick analysis: http://ready.mobi/launch.jsp?locale=en_EN.

Why Two TV Ad Sales Execs Hit the Road

 

As a result of the Seahawks’ championship-calibre play en route to their sole Super Bowl appearance in 2005, Northwest TV advertisers were rewarded for their investments. Enroute to the Super Bowl, the Seahawks generated sky-high Seattle Nielsen TV ratings in their playoff victory over the Carolina Panthers – an astounding 52.8 rating, which basically equates to an 80 percent share of viewers.

That was even higher than the 51 rating in 1999 for the Seinfeld finale and the 50.5 rating for the Mariners’ playoff victory over the Yankees in 1995.

But national advertisers had reason to be alarmed about their investments of $2.6 million for a 30-second commercial in the Super Bowl, according to Nielsen. The playoff game’s national ratings were down significantly in the desirable 18-49 demographic. The game drew a 10.7 overnight rating – down 33 percent from a comparable time period last year.

Two reasons for the decline: 1. The Seahawks and Panthers didn’t have massive national fan support. 2. The Seahawk victory was never in doubt.

National ratings dropped by more than 50 percent in the final 30 minutes. For viewers in other cities, the game was as dull as a dark, overcast Seattle sky in January. 

A lot has changed since Volney B. Palmer opened the first advertising agency in Philadelphia in 1841; and in 1976 when the Seahawks entered the NFL, the U.S. Supreme Court ruled that commercial speech is protected by the First Amendment in the Constitution.

Several new mediums were created in the last century including radio, television, cable, and the Internet.

But those proven mediums are being challenged. As newspaper ad revenue remains a flat and the viability of television ads is under attack in this complex mobile age of business, new techniques are constantly being implemented as marketers and ad agencies relentlessly scramble for new ways to reach customers.  

Competition for Ad Dollars

Whether it’s mobile couponing or click-to-calling, media buyers are frantically looking for the next opportunities in mobile data services to connect with consumers using hand-held devices. Other techniques, of course, include honing trend-spotting skills, blogging, podcasting, and word-of-mouth advertising.

Some participants in Word of Mouth Marketing Association, www.womma.org, have erroneously indicated they believe traditional advertising is dead, and that word-of-mouth marketing agents do not have to divulge they’re being paid to hawk products. Fortunately, at a recent convention, they heard a report on truthfulness from Walter J. Carl, Ph.D. of Northeastern University in Boston. He also said 75 percent of consumers approached by word-of-mouth agents will react favorably, if they trust the person.

It takes a lot to motivate people to trust marketers. That includes sports fans who have been weary from decades of mediocre performances. Selling requires a “happy buying environment” so the buyers feel an emotional connection.

Many of the 67,837 fans just outside Qwest Field attending the Seahawk victory experienced a new twist in marketing, GoMobile Advertising. Two well-known former Northwest TV advertising sales managers – Chris Schuler and Mike Seifert – are the partners in the firm taking advantage of the happy buying environment. (Note: I’ve known them and some of their clients for many years.)

Considering their extensive media experience, their new medium, is a surprise. They tout their environmentally friendly biodiesel-fueled truck as an advertising complement to TV, newspapers, and the Internet.

Before and after the game Sunday, thousands of Seahawk fans streamed by the parked GoMobile truck.

It has eight scrolling billboards on each side that change every 6 seconds. It’s a high-tech truck but is reminiscent of the old-fashioned whistle-stop election campaigns of Franklin Roosevelt. When not parked at high profile events, the truck is driven on heavily traveled routes, much like a bus.

Why Change Careers?

So what motivated the two respected television advertising professionals? “People are clamoring for new ideas. They’d say give us something new and creative,” said Schuler, the GoMobile president.

“We did a lot of revenue models – we just kept finding limitations,” he said. Then they found a company that uses an Isuzu chassis to build box-like trucks with the technology to scroll advertising signs.

GoMobile Vice President Seifert says they’re also donating space: “12.5 percent of the panels, for non-profits such as Pacific Northwest Ballet, for the price of an $800 production fee.”

“Their approach is different than what PNB usually purchases in our advertising mix, and that’s why we wanted to try GoMobile,” said Lia Chiarelli, the ballet’s associate director of marketing and communications. “Their routes are well targeted to get our message into neighborhoods we might not reach with traditional outdoor advertising.”

Chiarelli is enthusiastic about other GoMobile benefits: “The promotional component of having the truck at targeted events, passing out coupons, etc., adds value to advertising with GoMobile, she said. “It’s a new vehicle to share our message and it’s exciting to be a part of something fresh.”

An anchor sponsor concurs: “I see it as we have a very mobile society, the majority of the population loves their vehicles and spend time driving vehicles instead of taking the bus,” said Ken Huttman, CEO of www.AutoExpressUSA.com. “We have found increased traffic from the Eastside ZIP Codes since we have been with Go Mobile.” (Note: Huttman also owns a TV production studio, which produces commercials for my clients.)

But is the GoMobile business model profitable? “After 90 days, we’re in the black,” said Schuler. His firm also has a second source of revenue.

The truck’s designer granted GoMobile marketing rights, which allows them to sell the trucks, too. They’ve developed a relationship with a business lender, Westover Financial, www.westoverfinancial.com,, which finances GoMobile’s truck deals.

The truck sells for $99,000, which is why some buyers prefer a lease option. “Two, so far, and we have 10 in the works, as we speak,” said Richard Abbajay, a Westover regional account rep. 

When media salespeople approach me about my advertising clients, one of the questions I ask is “What are you doing to promote yourselves?” What is Seifert doing to promote his company? “We’re also working with Violeta Strash.” (She’s the General Sales Manager of Radio Sol/Salem Radio, which broadcasts the Mariner games in Spanish.)

“We’ll get high visibility at Safeco Field by parking our truck next to theirs,” said Seifert. “Mass advertising generally only reaches 71 percent of consumers; so it’s very important to reach the other 29 percent. This helps us set up a dialogue with minority groups.”

From the Coach’s Corner, here’s a  Seifert tip on marketing: “Diversify, serve the community, reach out to minorities, be environmentally conscious, look for ways to provide value, and work hard.”

Postscript to a recent column: One of my conclusions was that North Carolina has a healthier economy than us. That’s primarily because North Carolina is more progressive in public policy – its lawmakers and public officials have a spirit of cooperation with business for economic development and job creation.

A Tacoma reader responded by sending me an article, “California Ranked Worst for Business,” from www.chiefexecutive.net, which has interesting conclusions from a poll of 339 readers.

Their priorities in picking states to establish business operations: Work force quality, 20.6 percent; labor costs, 18.3 percent; and taxes, 15 percent.

The article included a map of states, which named North Carolina as one of the top five states “to do business.” The Northwest states weren’t ranked as leaders. Oregon was named one of the “worst.” Idaho and Washington fared better; they were rated as “good.” (The five grade levels: Best, good neutral, not good and worst.)

Experts Converge in Portland to Ease the Marketplace Roller-Coaster Ride

 

Consider these developments:

With the mounting global use of broadband, TiVo and increasingly sophisticated Web-technology, some companies are exploring alternatives to saving money on TV production and advertising schedules. They’re substituting online videos on their Web sites with interactive, virtual experiences for TV commercials.

Recession spending for advertising slowed down. Primarily, the spending fall-off adversely affects radio and TV stations as well as local newspapers. Online advertising, which was attracting funds originally on traditional media, has slowed, too.

Publishers admit revenue questions keep them up at night. Over 80 percent are finding it difficult to make revenue from advertising, according to a 2007 study by YUDU Media, a digital media company. The survey of 300 publishers also showed 72 percent are troubled by circulation woes and 64 percent worried about increasing distribution and print expenses.

At least one trend in online advertising served as fodder in court cases. Google was sued for trademark infringement by American Airlines, www.aa.com and GEICO, www.geico.com. The airline’s lawsuit, for example, complained Google used the airline as keyword triggers for other advertisers so they can attract Web surfers as customers. They weren’t the first to complain. Google has prevailed in similar lawsuits, but the airline and insurance company settled their cases.

Depending on your favorite research source, Google maintains its dominance with its 60 to 80 percent share of all searches. But Microsoft’s Bing, www.bing.com, is making headway.

Such developments represent quite a shakeup and reflect chaos in the somewhat turbulent landscape. It’s increasingly important to better understand how to anticipate connecting with consumers.

To improve odds for success, it’s important to stay grounded and rely on history for direction. In this case, I’m reminded about this quote by Albert Einstein: “Imagination is more important than knowledge.”

With all these fast-changing dynamics converging on the minds of marketers, a Portland technology professional has a vision. His solution? Experts from all allied fields – from advertising to interactive technology – share their insights at an event called “inVerge” in Portland every September.

“With the digitization of content and the democratization of distribution, the lines are blurring across industries, professions and corporate silos,” said Steve Gehlen, the conference founder. “So, the timing seems right for a multi-disciplinary conference where we can come together, interact with experts across various fields, and learn from each other.”

How and why did he originate the conference? “I am driven to bring creative and technical professionals together for networking, education and professional development,” he said. “…I left a 12-year career as a corporate Internet strategist (for companies such as Nike, Hollywood Entertainment and Oregon Health & Science University) to focus on that passion.”

Sponsored in part by the Portland Development Commission, www.pdc.us, Gehlen is enthusiastic about the venue location.

“As a location for inVerge, Portland has the advantage of being away from traditional industry centers while also being one of the country’s most lauded cities and a well-regarded source of creative innovation,” said Gehlen. “It’s an obvious neutral location to bring together thought leaders, influencers and cultural creatives to discuss new ideas about how to invite and excite consumers to interact with brands and each other.”

Here are some concluding Biz Coach thoughts:

Gehlen’s vision is welcome. In essence, news outlets need revenue in order to hire journalist, in-part, so they can supply readers with quality information. So the print companies need to monetize their online content. Consumers won’t visit your video-rich Web site to buy your products and services unless you’re a brand name, which also underscores the value of your quality local news outlets.

Whether you’re in academia or business – attending inVerge appears to be a wise investment – in order to put it all together to ride the marketplace roller-coaster.

For more on the conferences, visit: www.inverge.com.

From the Coach’s Corner, there’s also some excellent activity at Oregon State University.

OSU provides assistance for new businesses. Here’s a link: http://oregonstate.edu/research/technology/startup.htm

In invention-licensing deals, the school made news when it earned $2.48 million. The top inventions include a creation in wood glue and varieties in wheat and potatoes. These developments primarily help the inventors and the school, financially.

« Previous Page