Some Of The Best "Brand Marketers" May Surprise You...

Now, when you think "Kim Kardashian", I'm sure the last thing you think of is a marketing genius. But she, and many other women in Hollywood, are creating business empires as well as global brand awareness of themselves and their hocks all while proving to be quite savvy when it comes to marketing.

Paris Hilton, Jessica Simpson, Jennifer Lopez, and Britney Spears are dominating their specialized fields (i.e. acting, singing, dancing, etc.) as well as the retail market place. And their strategies including multi-channel and brand marketing.

Of course one can’t leave out the “queen of all media” when discussing marketing brilliance. Oprah truly exemplifies “multi-channel marketing” with her print, web, radio and television efforts culminating to die-hard fans that span the globe. In addition to her popular TV show, her webpage (OprahStore) generates sales from clothing and other items for pets, baby, and home. In addition, her show transcripts and DVDs are for sale. The later, which is repurposing her “content”, is something I discuss in my SONAR Content Distribution Model TM.

A recent article in Life & Style cited that Jessica Simpson’s business is projected to hit the “billions” by 2011-12 between her record and ticket sales, clothing, shoes, handbags, fragrances, skin care, hair extension line, and endorsements.

And a recent panel discussion on ShowBiz Tonight addressed how some of these women use their brand management power to go from obscurity to household names. Case in point: Kim Kardashian, who after a salacious sex tape leak had turned an unfortunate situation into a very fortunate situation.

Ms. Kardashian is not only drop dead gorgeous but also one of the most searched women on the Internet – with 49 million search results and 4.6 million Twitter followers. Ms. K’s skincare line, Perfect Skin, even has 7,000+ followers on Twitter … all showing how the Internet (social media, SEM, SEO) has been used to capitalize on her fame. “Brand management” has helped Ms. K obtain lucrative endorsement deals for bathing suits, diet products as well as compensation for personal appearances, modeling, and more.

So how did they do it?

No doubt these mavens have some smart business people around them complementing their own gut intuitions.

But what has also helped was their ability to create and distribute their “brand message” and their “USP” (unique selling proposition) through multi-channel marketing platforms.

They also, either by their own vision or with the aid from their marketing "team" work on product development and product “funneling” (i.e. apparel, fragrances, endorsements) to make sure they cover a variety of selection and price points (another critical key to success, if you read my July 27 Blog Post, Give Your Customers What They Want: The Importance of Product Development, Front-Ends and Back-Ends).

Finally, they deliver their “brand message” through multi-channel marketing platforms, such as infomercials, print ads, TV ads, radio ads, and Web (social media and search engine marketing).

So the next time you think Hollywood is full of vapid, plastic people. Just remember that although some of these folks aren’t MBAs or marketing junkies, they have demonstrated some innate marketing insight to help increase market reach, generate social awareness, increase website visibility, and encourage both sales and lead generation ... ironically the same goals as “genuine” marketers.

No New Year's Resolutions!

Yesterday I wrote about the importance of planning before your planning sessions. Today I'd like to share with you a huge concern based on what I've been hearing bank and credit union marketers tell me from all over the country.

"Yes, we need to grow. Yes, we need to be more active in our market places. Yes, we need help ... but ...

A) ...we want to wait until after our planning session," and/or

B) ...we simply don't have the budget this year. Call us in January."

The concern?

If you start today, you'll need to:

• Analyze the situation (see yesterday's blog)
• Set goals
• Review and prioritize recommendations
• Gain internal approvals
• Create segmentation strategies
• Implement sales processes & training
• Reprice
• Repackage
• Produce external communications
• Launch strategic programs

If all goes well, you're likely 60-120 days from today until launch - based on where you are in the list above. You can then plan on another 30-60 days from launch until you experience real results.

So, what's the concern again? You need to grow. You need to take advantage of a current consumer propensity to move money from "big banks" to community-sized financial institutions. If you wait, 2011 will be half gone before you see results.

Don't loose potential revenue ... seize the day!

What if you had a marketing partner that guaranteed a 100%+ ROI? What if they started helping you today and didn't invoice you until 2011? Would that help you to "Carpe Diem?"

9 Hot Ways to Build Your List...Fast!

Whether you're an entrepreneur, corporation, or publisher - the power of the "lead" is critical in growing your business. Leads, also known as prospects, are typically the entry level point of the sales funnel. A popular business model by many online publishers is to bring in leads at the free level (i.e. free report, free newsletter, free webinar), then add those names to their "list" and usually over the course of 30 - 90 days (the bonding time) that lead will convert into a paying customer. This practice is known as lead generation, name collection or list building efforts.

Today, I'm going to share with you some proven online marketing methods I've used and had great success with at some of the top publishers in America. And bonus ... many of these tactics are little or no cost!

Here's the list, in no particular order:

1. Teleseminar or Webinar. This is a great way to collect names. Promote a free teleseminar or webinar to prospects (that is not your internal list). Remember, this is for lead generation, not bonding. So your goal is to give away valuable information in exchange for an email address. The trick is to promote the event in as many places as possible without incurring advertising costs.

2. Co Registration. Co Reg is another way to collect names, but involves a nominal fee. Co Reg is when you place a small ad on another publisher's site after some sort of transaction (albeit a sales or lead gen offer). So for instance, after someone sign s up to AOL Travel eNewsletter, a Thank You page comes up with a list of sponsors the reader may find interesting as well - other free eNewsletter offers. The text ad is usually accompanied by a small graphic image representing the sponsor. The key here is to pick publishers and Co Reg placements that are synergistic to your publication and offer. Another important note is to make sure you follow up quickly to these names so they don't forget who you are. I suggest a dedicated autoresponder series. Co Reg efforts can cost you around $1 - $3 per valid email address.

3. Affiliate Partnerships. This includes JVs (joint ventures), affiliate marketing, guest editorials, editorial contributions, and reciprocal ad swaps. This tactic is extremely effective and cost efficient. The key here is having some kind of leverage then approaching publishers that may want your content or a cross-marketing opportunity to your current list (note: this only works if you have a list of decent size another publisher will find attractive). In exchange for content or revenue share efforts, you and the other publisher agree to reciprocate either eNews ads or solo emails to each other's lists, thereby sending a message to a target, relevant list for free. Well, if you agree on a rev share, it's free as far as ad costs, but you are giving that publisher a split of your net revenues.

4. Content Syndication. I've written about this many times, but can't stress it enough. Content is king and you can leverage it via my SONAR Content Distribution Model TM . SONAR is a cost effective, yet powerful, method of repurposing and synchronizing content (albeit text, audio, video) distribution into various, targeted channels. And it allows companies, publishers, entrepreneurs ... basically anyone with content on their website ... the ability to ultimately turn traffic into sales. SONAR represents the following online distribution platforms:

S Syndicate partners, content syndication networks, and user generate content sites
O Online press releases
N Network (social) communities
A Article directories
R Relevant posts to blogs, forums, and bulletin boards. SONAR works hand-in-hand with your existing search engine marketing (SEM), social media marketing (SMM), and search engine optimization (SEO) tactics.

5. Search Engine Optimization. In order to drive as much organic traffic as possible to your website you need to make sure your site is optimized for the correct keywords and your target audience. Once you optimize your site with title tags, meta descriptions, and meta keywords, you need to make sure you have revised your site to harness the traffic that will be coming. That means adding eye-catching email collection boxes to home page, relevant banners, and obvious links to get to product pages. You don't want to miss any opportunity to turn traffic in to sales or free newsletter subscribers.

6. Media Buying. To compliment your "free" online efforts, you may want to consider targeted, low cost media buys (paid online advertising) in the form of text ads, banner ads, blog ads, or list rentals (i.e. eNews sponsorships or solo emails). You're paying for the placement in these locations, so you must make sure you have strong promotional copy and offer for the best results possible. If you're thinking about buying online ads and want to make sure you get the best rates around, then check out my new ebook, Muscle Media: The Complete Guide to Buying Online Ads For Less.

7. Pay Per Click (PPC). Many people try pay per click only to spend thousands of dollars with little results. Creating a successful PPC campaign is an art - one that I've had success with. You must make sure you have a strong text ad and landing page and that the ad is keyword dense. You must also have a compelling offer and make sure you do your keyword research. Picking the correct keywords that coincide with your actual ad and landing page is crucial. You don't want to pick keywords that are too vague, too competitive, or unpopular. You also need to be active with your campaign management which includes bid amounts and daily budget. All these things - bid, budget, keywords, popularity, and placement - will determine the success of the campaign. And most campaigns are trial and error and take anywhere from 3-6 weeks to optimize.

8. Viral Marketing. Make sure you have a "forward to friend" feature in your eNewsletter to encourage viral marketing. It's also important to have a content syndication blurb in your newsletter, this also encourages other websites, publishers, editors and so forth to republish your content as long as they give you author attribution and a back-link to your site. In addition, the SONAR model above incorporates viral buzz in its strategy, so deploying SONAR will help you increase your website visibility and reach.

9. Polls. Incorporating a poll on your website, or having a poll on another site or eNewsletter (via a media buy or ad swap) is a great way to build your list. It's important to spend time thinking about your poll question - something that a hot topic, controversial, and relevant to the locations you're placing your poll. You want to pull people in with your headline and make the poll entertaining. Your answers should be multiple choice and have an "other" field which encourages participant to engage with your question. I've found this "other" field as a fantastic way to make the poll interactive. Many people are passionate about certain subject matters and won't mind giving you their two cents. Then to show appreciation for talking the poll, tell participants they are getting a bonus report and free eNewsletter subscription (which they can opt out of at any time). And of course, make sure to mention - and link to - your privacy/anti spam policy.

After you kick off your list building efforts, make sure you start tracking them so you can quantify the time and resources spent. This involves working with your webmaster on setting up tracking URLs specific to each website you're advertising on. It also means looking at Google Analytics for your website and corresponding landing pages to see traffic and referring page sources. When deploying social media or SONAR tactics, it's important to look at which sites are linking back to you. You can check this with several free back-link tools such as http://seopro.com.au/free-seo-tools/link-checker/ , http://www.iwebtool.com/backlink_checker , http://www.backlinkwatch.com/index.php . As well as set Google Alerts for related keywords to your marketing efforts. You'll then be notified when someone republishes your content as well as general buzz about you.

Put in the work to win the race

In one month from today, I'll be running in my first ultra marathon - a 50K trail run in Michigan.

While on a training run last night, I got to thinking about how so many of the bankers I talk to are starting to talk about their upcoming planning sessions. As I was running through the woods, I started making comparisons to running.

When September 25th comes, the gun fire and the race begins ... the winner will not necessarily have that day's efforts to thank. Rather it's the hundreds of miles run the weeks and months leading up to the race that matter more. It's the hill repeats, the speed work and the long runs. It's the preparation!

The same goes for your planning. First, we need to scrap the phrase "Planning Session" and call it what it is, a PLANNING PROCESS. Planning should not begin and end at your retreat. You should be reviewing, working and improving your plan every day. The "session" should simply be a sanity check ... a report on progress and a group agreement to stay the course or tweak.

What are you doing now to make sure your 2011 planning is a success? Here are some thoughts:

• Make sure you have a thorough understanding of the competition: conduct secret shops, review their products, packaging and pricing. How are they doing in market share?
• Understand market trends. What do local consumers want (not necessarily what product, but what end result - lower monthly payments ... pay off debt faster ... just get by to my next paycheck?) What are their perceptions of your institution and the competition? (Primary research is best here, but if you don't have the time or budget, collect data wherever and however you can to make a informed decision)
• Analyze how your current product suite aligns with the competition and market trends.
• Analyze how your current sales process and external communications aligns with the competition and market trends.
• What are the current financial needs of your institution?
• do you have the right people in the right places to achieve what you need to?

Without some of these basic questions answered, I don't see how a strategic planning process can be very, well "strategic."

A little sweat during the preparation will make you more successful (at least that's what I'm counting on when race day rolls around!)

Take care,

Eric

A Framework for B2B Customer Segmentation – Part 1: Why Segment Your Market?

Marketing segmentation is about subdividing markets into segments of customers that have similar needs and behaviors. This way, vendors can optimize their product offering, marketing, and sales approach to meet the specific requirements of the segment better and more cost efficiently than the competition.

But the craft of identifying and selecting the right segments is too often rushed and under-appreciated. Many companies don't segment at all, segment only superficially, or copy segments that seem to be working for their competitors but without really understanding the rationale for selecting target segments.

In complex markets, segmentation is not trivial. And many companies simply don't allocate sufficient resources for defining the right segments. Often, segmentation is seen as "artificially" reducing the addressable market. Why go after only a few target segments when there are so many buyers outside of these segments to be converted? This argument is a fallacy that doesn't recognize the impact of dramatically higher conversion rates and capture of higher value customers within target segments, or the opportunity cost of deviating from your strategy and core competencies by going after less than ideal prospects outside of the target segment.

Benefits of Segmentation
The benefits of segmentation are substantial. With tighter segmentation, vendors can better satisfy customers and produce more revenue in shorter amounts of time, at lower cost. Segmentation is critical as vendors evolve from technology-focused business models to customer-needs driven engineering and development, sales, marketing, and operations.

Because prospects in defined, targeted segments are a better fit with the vendor’s offering, prospects are more likely to buy, they close faster, produce bigger deals, and remain more loyal. In short, they are more profitable. For marketing, well-defined segments means more targeted messages and programs that resonate with buyers. This results in higher response rates, better engagements, shorter conversion cycles, and overall better return on marketing investment.

Marketing Automation Drives Renewed Focus on Segmentation
Market segmentation is experiencing a renaissance. A key driver for this renewed focus on segmentation is marketing automation. Why? Because B2B marketing teams needs to have a sound understanding and definition of the target market segments first in order to create compelling messages and content that addresses segment-specific business drivers and pain points, guides buyers through the buying process, and enables mass customized marketing and automated email nurturing campaigns that execute based on prospects' demographics and behaviors.

Part 2 of this series will explore how to go about segmentation and why the reasons customers buy (motivations) are often more important than who they are (demographics).

How do you approach segmentation in your organization?

Some thoughts on Dynamic Pricing

A couple of months ago, a good dialogue about dynamic pricing began when Trisha Mead (PR and Publications Manager, Portland Center Stage) wrote a blog post on the benefits of dynamic pricing on the 2am theatre blog, and then Adam Thurman (Director of Marketing, Court Theatre) wrote a response entitled "the perils of dynamic pricing." It reminded me how often marketers disagree with each other when it comes to so called best practices.

If your organization is considering dynamic pricing, a couple of things to think about from someone who has some experience with it:

1. Tailor all marketing strategies to your organization. How can one pricing strategy be perfect for one organization, and completely wrong for another? The simple answer is every organization is unique, with a unique set of circumstances to consider. For example, if an organization's funding mix is 70% earned and 30% contributed, chances are, they might be much more likely to consider a dynamic pricing model, as ticket sales play a more prominent role in the organization's fiscal health. On the flip side, if your organization is known for more riskier programming, and relies upon contributed revenue more to subsidize less popular work, then dynamic pricing might seem like an alien concept.

2. Be mindful of your organizational culture and brand. Some companies are pioneering and entrepreneurial in nature, always looking for new opportunities to increase revenue streams. Other organizations have a more egalitarian approach to arts consumption. If your organization is known for having low prices available to everyone, then a dynamic pricing model might cause quite a disruption. However, those that argue that non-profits have nothing to learn from for-profit models are naive. There is now a long history of non-profits and for-profits working together. Even the most egalitarian of organizations, a "people's theater" like the Public Theater, routinely relies upon revenue from the for-profit theater world to fund its non-profit mission. Where would the Public Theater be today without A Chorus Line or New York Theatre Workshop without Rent? Sometimes for-profit strategies and approaches can be very beneficial to non-profit missions.

3. The funding conundrum. In his post, Adam asks a question which is meant to imply that the implementation of dynamic pricing could jeopardize an organization's "case for support." I have heard this argument before, and found it intriguing. Over the span of the past few months, I have sat on a couple of major funding panels with representatives from the top national arts foundations. I took the opportunity to ask them about the impact dynamic pricing might have in their opinion on an organization's "case for support." Without exception, each funder recognized that contributed support, especially from foundations and corporations, has taken a significant hit as a result of the global economic crisis, forcing non-profits to devise methods to increase other revenue streams. They understand these strategies in some cases are necessary for survival, and consequently said that they would not have any impact on a funding decision.

4. Dynamic pricing doesn't necessarily mean eliminating accessibility. Most non-profit art organizations would agree that accessibility to art is important. Dynamic pricing in itself doesn't preclude patrons from experiencing a performance if they can't pay top dollar. What it does do is force price sensitive consumers into an early buying pattern. Remember that in most cases, dynamic pricing doesn't affect ticket prices until a venue is at 60-70% paid capacity. If you purchase early, dynamic pricing shouldn't come into play. One of the reasons that I like dynamic pricing is that it rewards a buying behavior that is essential to converting a single ticket patron to a subscriber. Subscribers buy early and in bulk partially to get the best pricing available. If you can train more single ticket buyers that the later they purchase, the higher the price, it teaches the price sensitive single ticket patrons purchasing behaviors more aligned with the purchasing behaviors of subscribers.

Adam and Trisha are both right--dynamic pricing is both beneficial and perilous. Depending upon the needs of your organization, what's good for one, might not be good for all. Makes me start to wonder if there are any such things as general best practices.

The Economy is Right for Onboarding

Some of the most successful companies in the world DON'T have onboarding!

McDonald's has the classic, "would you like fries with that?" At Old Navy, you're lucky to have a kid ring you up who's not too busy texting his girlfriend.

But you're not peddling burgers or capris. You're dealing with people's money! And in this economy, that's darned important.

Particularly in this economy, your customers are looking to you to help them save money, lower payments, buy something new and generally give the peace of mind. Something they don't ask for from fries and jeans!

And the beauty of it is ... you CAN help! And that's what onboarding is all about. Creating a process to communicate with your customers.

• Segmentation: Understand which of your products a customer is likely to need - and when
• Timing: Know when and how often to talk to the customer. There is no one-shot silver bullet
• Purpose: Know the objective of every piece of communication. Are you trying to get them into new products, make them more loyal or make the customer more efficient?

With the right onboarding program, your staff will appreciate having direction, a process and tools and your customers will appreciate your bank or credit union actively participating in trying to help.

Want to learn more about onboarding? Join MarketMatch's FREE Brown Bag Lunch webinar on Friday, August 20. To register, simply click here.

Jumpstart 2011

OK...

So here we are in the 2nd week of August, half way through the 3rd quarter and you are looking at your budget. You have been focused, thrifty and bent on ensuring an ROI...but it is still...

G-O-N-E !!

Where did it go?  What do you do now? You still have the 4th quarter to go and you need to make sure you hit the ground running in 2011, as it will be the year for growth and coming out of this recession thing at full speed.

That's where you need a jump start.

MarketMatch is here for you...

We know that planning takes time and you need planning to ensure your ROI is the best possible, that your targeting is fool-proof and that your team is ready.

Give me a ring and find out about our 2011 jump start opportunity....it might be JUST what you were looking for and a way to "kill two birds with one stone!"

Cheers...

Bruce Clapp

4 Things to do AFTER August 15th

Despite your best efforts, your customers and members will likely learn about the Reg. E changes while shopping on August 16th.

You've sent them letters, called them at home, talked to them at the teller line and delivered emails ... but don't assume that your customers are ready for the Reg. E changes on August 15th.

In a recent survey by the Federal Reserve, only 3 of 9 participants understood the changes after reading an opt-in notice.

So, from a communications standpoint, August 15 is not the finish ... but the starting line. What should you do now?

1. Proactively Communicate with Declined Customers ASAP

The faster you can recognize and act on a declined debit card, the better. If you can call ... call. If you can send an email, that's fine too. If you have to, send a letter. The goal is to communicate with the customer BEFORE they call you to complain.

It's important for your staff to assume that EVERY declined debit card is a surprise to the customer and that it hit them at the most inopportune time and when they had no cash on hand.

• Be empathetic but not apologetic
• Assure them that this new federal regulation has impacted ALL financial institutions
• Let them know that you made several attempts to educate them and that you ultimately acted on their wishes
• Provide them with an easy way to opt-in now to avoid future declined cards at point of sale or at the ATM

2. Prepare Your Front Line and Call Center

• Again, make sure your staff is empathetic and assumes the worst case scenario for the customer
• Make sure that the team understands the Reg. E basics
• Arm them with a list and/or samples of all of the Reg. E communications that customers have been sent over the last few months
• Provide them the tools to help your customers opt-in immediately to avoid future issues

3. Add Opt-in to Your On-boarding Program

It's never too late for a customer or member to opt-in. Make sure that you're communicating, with real-world examples, what can happen if you opt-in (fee for convenience) vs opt-out (possible decline at transaction).

4. Communicate Reg. E Changes to Merchants & SEGs

This regulation will impact local merchants as customers will be declined more at the point of transaction. Use this as an opportunity to build relationships with existing and prospective local merchants by providing free education on the regulation.

Take care,

Eric

937-426-9848

egagliano@MarketMatch.com

Ready. Fire. Aim.

It's that time of year again....early August, the dwindling of the summer and the near onset of school for your kids.  It's also probably the post-mid year review and you are either behind pace or you now realize that the 2nd half of the year is a month plus over!

Unfortunately, we still see many organizations with a "Ready. Fire. Aim" philosophy.  The forget that all important planning step...in the hurried frenzy of getting things launched.

Now is certainly the time to launch new initiatives and promote your business.  P&G, the world's largest consumer goods company recently invested an UNPRECEDENTED level of marketing into their organization and customer.  P&G has always been strong investors in marketing, but the most recent quarter and month end was a sign of good things for all marketers.

BATAVIA, Ohio (AdAge.com) -- Procter & Gamble Co. boosted ad spending by $1 billion in the just-closed fiscal year, about $750 million of that in the fourth quarter alone, which helped the consumer-goods behemoth return to share and sales growth.

It was their largest investment in marketing EVER... that should light the fire in your organization, too.  The fact that the world's largest consumer goods company sees light at the end of the tunnel and has made the realization that NOW is the time to invest in marketing.  And you can see from their press release...it positively impacted their share and sales growth!!

However, we need to also realize that they did their homework (the AIM part of the equation) before they invested their marketing dollars.  That is where the planning comes into play.  With an articulated, targeted, and supportable marketing plan (for a product, new branch, or business line) the investment can be supported and will also have a much higher ROI!

So, three key take-aways for you and your organization:

1. Now is the time to invest in marketing
2. Be planned and focused, but be swift and purposeful in your planning
3. Measure your ROI and promote the results

These three steps will lead to a very productive 2nd half of 2010 and help lead your organization forward!

Cheers!

Bruce Clapp

Increased Profits, Not Higher Sales, Determine Marketing ROI

Return on marketing investment has become a hot topic as marketers seek to prove the value of their activities and programs and strive to bolster their credibility in the C-suite.  Today, marketers are using ROI for everything from justifying marketing budgets to measuring the performance of individual campaigns.

Given its increased use and popularity, you would think that the process for calculating marketing ROI is now well understood.  Unfortunately, I still see far too many examples of marketing ROI that has been calculated incorrectly - in many cases by people who should know better.

One of the most common errors is the use of increased revenues (sales) rather than increased profits when calculating marketing ROI.  To illustrate this error, take a look at the following table.  I based this table on an example ROI calculation that appears on the Website of a well-known national provider of direct mail services.  I won't name the company because they are only one of many companies that use this methodology.

In this example, Return On Investment (ROI) was calculated by dividing Total revenue ($1,250) by Total cost of the mailing ($550), resulting in an ROI for the mailing of 227%.

That ROI number looks fantastic, but the problem is, it's flat out wrong.  Way wrong.

The basic formula for calculating ROI is:

ROI = (Gain from Investment-Cost of Investment) / Cost of Investment

For ROI purposes, Gain from Investment is the incremental gross profit (gross sales/revenues less cost of goods sold) produced by a marketing campaign or program.  Using incremental sales or revenues in the ROI calculation distorts ROI because most marketing campaigns are designed to increase sales volume.  And increases in sales volume are not free - there are always costs associated with producing and delivering the additional products or services.  Therefore, incremental gross profit is the real meaure of the "gain" produced by most marketing investments.

So, the first problem with the methodology used in the example is that it bases ROI on incremental revenues rather than on incremental gross profits.  If the cost of goods sold of the products covered by the example is 50% of the products' selling price, the incremental gross profit produced by the direct mail program would be $625 (total revenue of $1,250 X 50%).  Using incremental gross profit causes the ROI to drop from 227% to just under 114% ($625 / $550).  That's a more accurate ROI calculation than the one used in the original example, and it's still an impressive number, but it's also still wrong.

To calculate marketing ROI correctly, you must subtract the cost of the marketing investment from the incremental gross profit produced by the investment and then divide by the cost of the investment.

So, the real ROI produced by the example direct mail project would be calculated as follows:

ROI = (Incremental Gross Profit-Total Cost of the Mailing) / Total Cost of the Mailing
ROI = ($625 - $550) / $550
ROI = $75 / $550
ROI = 14%

It should be clear from this discussion that inaccurate calculations of marketing ROI can lead to unprofitable marketing decisions and can also undermine marketers' credibility with senior company leaders.  Would you want to tell your CEO that a marketing campaign has an ROI of 227% when the real ROI is 14%?  The moral of the story:  If you're going to calculate ROI, it's wise to calculate it correctly.

Have you seen instances where inaccurate calculations of marketing ROI have led to flawed marketing decisions?

Online Advertising For Less: When SEO, SEM and Social Media Marketing Just Aren't Enough

Using no cost online marketing tactics, like search engine marketing, search engine optimization, and social media marketing are all good strategies, but they’ll only get you so far. And they won’t create you the voluminous traffic needed to really see substantial results, fast.

Any successful online marketer will tell you, the key to a balanced marketing mix is having a variety of tactics that fit your budget and business objectives ... from no cost SEO and SEM ... to paid advertising with banner ads, blogs, text ads, display ads, newsletter sponsorships, email marketing and more.

Plain and simple: When you really want to increase your Web exposure … and sales … you need to cast a broader net using targeted online advertising.

But the question is, how do you leverage this powerful platform without spending a fortune?

The answer is learning the ‘insider secrets’ to buying online ads for less.

Below are some “must know’s” before doing your next online media buy or dealing with account executives:

The Art of the Online Ad Deal
In the process of putting together your online media buy (or “insertion order” as the official agreement is referred to), you will be required to analyze many proposals from different website, blogs or ad networks. You’ll need to ascertain if the rate you are being quoted is cost effective and comparable to industry rates. This is where the “Media Tracking Matrix” spreadsheet comes in handy. I recommend sorting this sheet by ad rate, lowest to highest. So you can see instantly which contenders are out of budget or not.

Keep in mind that when online account ad executives start quoting you advertising rates, many drivers can influence that rate such as the following. And you should be aware of these factors in order to make sure you get the best possible ad rate:

1. Seasonality. Most Web traffic typically drops during summer months as well as major holidays. Use this knowledge to your advantage and try to get lower rates during these times. You can also pause your ad if it happens to be running during a holiday and have it turned back on after the holiday.
   
2. Exclusivity. Find out if your ad is get 100% of the rotations or is sharing that ad space with other advertisers. For instance, one banner ad on a website may rotate and have 5 different messages each time you refresh. This is known as being “fixed ad placement” or “shared ad placement”. If you’re told you have shared placement, find out how many actual impressions YOU will receive.
   
3. Site Targeting. Will your ad be ROS (run of site), by channel, by page? Typically, you can drill down your banner ad or advertising message down to a specific page. But the lower your drill the more you will pay for that targeting. The higher you go, the less you pay. ROS is the highest level, so it’s usually the cheapest. Next is usually ROC (run of channel), that is, running your ad within targeted sections of a site. Then there are also specific pages or demographic targeting. Your goals and budget will determine which placement is best for your needs.
   
4. Remnant Space. Check with the account executive to see if they have any remnant space (space that they’re having difficulty selling for any reason) or last minute specials. With more popular and high traffic websites, you can get some great deals on remnant space. Make sure to find out the Terms and Conditions.
   
5. Termination Right. Make sure your insertion order has a “termination right” or “out clause” (typically 24 – 48 hours). This way, if you see after a week your ad isn’t performing, and you tested other ads, you can end the campaign without penalty and only pay for impressions served.

For more proven, powerful, and money saving ideas for online advertising as well as to boost your ad’s performance, visit http://www.precisionmarketingmedia.com/products.html. In Muscle Media: The Complete Guide to Buying Online Ads for Less, you’ll learn the tips and tricks to negotiating effective and cost-efficient online media buys. You’ll also learn…

• How to create a high-performing (low cost!) media plan
• Proven techniques for developing powerful online ads
• Best online ad networks (based on unbiased, hands on experience!)
• Suggested media allocations for your online marketing mix
• Marketing analysis and reporting tips
• Media ‘cheat sheet’ with the critical questions you need to ask on your next media buy
• Business negotiations 101 (and other tips) when dealing with online account executives
• The top questions to ask when coordinating JV, affiliate or publishing ad swaps
• The best free web tools for online advertising
• And much more!

The key to a successful online media campaign is knowing what to buy, where to buy it, how to gauge performance, and ultimately how to get the best rate that suits your budget.

The big misconception by many marketers and small business owners alike is that media buying, whether it’s online or offline, is expensive.

That is not always the case -- especially if you’re educated about the entire media buying process. So get informed and don’t be afraid to test online advertising. With the right ad in the right place … you’re poised for optimum results!

Marketing to our Emotions

Long ago, I read Dale Carnegie's How to Win Friends & Influence People, a book that I think should be required reading for all managers and marketers. The one lesson from the book that remained with me for all of these years, was a reminder that although we like to think of ourselves as rational decision-makers, we are first and foremost emotional beings.

In finishing my reading of Jonah Lehrer's How We Decide, which will be a new required book for my graduate students, I was reminded of a couple of important ways in which emotions override logic in decision-making:

Loss Aversion. The fear of loss is more powerful than the appeal of a gain, so powerful that often times it makes us make irrational decisions. To prove this principle, Lehrer discusses several studies and experiments involving investments. It has been proven over the past seven decades that stocks outperform bonds almost 12 to 1, leading one to question why bonds are so popular. In the early 1950s, an economist named Harry Markowitz won the Nobel Prize for developing an equation for the best investment ratio to ensure optimum performance. However, when it came time to implement his own theory, which supported heavier investments in stocks, he decided it was too risky and invested in stocks and bonds equally. In applying this principle to the performing arts, one could infer that the most powerful marketing message would be a message that demonstrated how one could avoid a loss (instead of acquiring a gain). For example: "Tickets selling out fast! Select dates still available. Don't be left out in the cold--call today!"

Expectation of Price. Arts marketing lore has it that price can affect one's perceived value of a brand. The thought is that selling tickets at a lower price will devalue the experience. According to Lehrer, there is some wisdom to this theory. In his book, he discusses a wine tasting experiment at Stanford. In front of a panel, scientists placed five bottles of wine ranging from $5 to $90, and the panelists were told that each bottle contained a different wine. However, there were only three types of wine, so two types were repeated (actually the $5 wine was placed in the $5 bottle and the $45 bottle). Even though the $5 and $45 bottle contained the exact same wine, the $45 bottle was considered far superior. The scientists followed up with another experiment, this time not listing any of the prices. When the taste test was executed completely blind, the cheapest wine got the highest rating of the group. Using the expectation of price to our advantage, wouldn't it be more beneficial to set the prices of our products a little higher (thereby establishing a higher perceived worth), and then discount if need be, allowing the customer to think that they are getting a bargain? Which is a great segue to...

The Anchoring Effect. Lehrer contends that a meaningless anchor--in many cases a contrived number--can have a strong impact on one's decision-making habits. To bolster his case, he describes a process that most of us are all too familiar with. When purchasing a car, we might first be drawn to the sticker price, even though most of us know that almost no one pays the actual price listed. That's because the sticker price is an anchor which allows the car dealership to sell a car at the actual price and make it look like a deal to the consumer. We leave the dealer thinking we just got a $20,000 car for a few thousand dollars less, when in actuality, we paid what the dealer was hoping for or else we would have never driven the car off the lot. So in our lives, if we need the average ticket price to be $50.00, why not set the price a little higher and discount so that our product's perceived quality is higher and the consumer walks away thinking they got a deal?

The Power of the Personalized One. Good fundraisers use this emotional quirk of our brains all the time. Lehrer examines a couple of experiments by Paul Slovic, a psychologist at the University of Oregon. In his experiment, Slovic shows a group of people a photo of a specific starving child while telling that child's story. Afterward, he asks for a donation to a charity designed to address starvation. For a different group, he provides statistics about starvation throughout Africa--numbers that illustrate the staggering size of the problem, and then he asks for a donation. The funds raised by the second group were 50% less than the first. The lesson -- causes need to be personified and at a scale where a person believes he or she can have an impact. In our daily lives, having a specific child tell how your organization's programming affected them could be more impactful than even the most compelling statistics.

Although not written for marketers or the arts, I would encourage everyone to read Jonah Lehrer's How We Decide. On average I tend to read a book about once a week, and I have found How We Decide to be one of the most challenging and intriguing reads I have had in a very long time.

Top 5 Social Media Challenges in B2B Marketing (Survey)

We are conducting a survey of B2B marketing professionals. One of the questions is asking participants to select the biggest challenges B2B marketers face when it comes to social media.

Here is a summary of the top-5 challenges the survey identified so far (n = 253). The most selected answer with 56 percent is (1) measuring the results. Not surprising considering that the right metrics and goals associated with social media are still evolving. The challenge of measuring results was followed by (2) identifying where to participate in terms of platforms, forums, blogs, etc (46 percent). Finding out (3) who the communities and influencers are that social media managers need to connect with and keep track of was the third most mentioned challenge with 45 percent. 40 percent of survey participants selected (4) coordination of social media activities as a challenge, and 33 percent found that (5) keeping track of conversations is an issue.

Does this picture reflect the challenges you face using social media in your organization?

Stay tuned for more sneak peaks and the complete survey report to be available soon. If you would like to receive a copy, please participate in the survey: http://www.surveymonkey.com/s/socialmediasurvey2010