connect Engaging Marketing Minds
Vol 1, Issue 1, Jan/Feb 2011
RESPECT why marketers don’t get the respect they deserve from bean-counters
INSIDE Marketing Supply Chain Ink Under Your Fingernails Consumers Purchasing Behavior War in the Boardroom
Vision Graphics Inc.
publisher’s letter
3
Connecting W
e live in a world that is highly connected. There isn’ t any piece of information or person that can escape us. However, even with all of the connection devices at our disposal, sometimes we seem less connected than ever before. In our head-down world of Blackberries and iPhones, we are taking a shot at connecting on a different level. Welcome to Connect, a magazine dedicated to engaging marketing minds. Our magazine endeavors to go deeper than a 140-character text message. We aim to research the ideas that are relevant to you and explore new concepts that could benefit anyone who considers themselves a marketing personality. We believe that the only sustainable advantage lies within marketing. Often overlooked, marketing encompasses everything that successful companies do. History has shown that the greatest organizations have a solid marketing culture and corresponding marketing disciplines. As we enter a new economic landscape, it seems that we are at the dawning of a new age. All kinds of people and businesses are reassessing their strategies and their core strengths. In turn, connecting with clients in a more meaningful way is critical to long-term prosperity. Marketing minds are poised to take the lead. This magazine is about you, and our first issue of Connect addresses what is a subtle, yet significant matter for many companies across the globe. “R-E-S-P-E-C-T” explores the idea that marketing has not received the appreciation that it so deserves. T ypically, marketing is cast aside as promotional work and not considered germane to the success of an organization. W ith perspectives from some of the best known marketers in the country, we elevate the concept that marketing is at the
Publisher
Mark Steputis
mark.steputis@visiongraphics-inc.com
Managing Editor Michele McCreath
michele.mccreath@visiongraphics-inc.com
core of success and that it needs to take its rightful place in the hierarchy of business. Connect is dedicated to the marketing mind. In turn, the graphic arts industry is a cornerstone to the marketing world. The transformation that the print community has gone through is extraordinary . Many of the country’s finest companies and brands are part of our world and afford us the chance to present the latest in marketing concepts. Our second article, “Ink Under the Fingernails,” delves into the evolution of printers into a sophisticated group that can offer you marketing services beyond your imagination. All kinds of people and businesses are Connect is a bimonthly reassessing their strategies and their vehicle with articles devoted to marketing, marketing sercore strengths. In turn, connecting vices, and strategic concepts with clients in a more meaningful way for marketers. Along with is critical to long-term prosperity. organically researched articles, we will provide you with a compilation of mar keting trends, facts, and commentary . We want to provide you with thought-provoking and digestible content. We want to spotlight the things that matter to you most. We want to connect with you.
Welcome and enjoy.
Mark Steputis Publisher
COnTEnTS 03 Publisher’s Letter
10 Ink Under Your Fingernails
04 Marketing Supply Chain
14 Consumers Purchasing Behavior
Connecting
The Evolution of Print
Art Direction
Brent Cashman • Creative Director Laura Martin • Graphic Designer Erik Diamond • Creative Designer Connect is published bimonthly by copyright 2011. All rights reserved For more information contact Michele McCreath at
Operational Effectiveness & Optimization
06 R-E-S-P-E-C-T
Why Marketers Frequently Don’t Get the Respect They Deserve
15 War in the Boardroom
Why Left-Brain Management and Right-Brain Marketing Don’t See Eye to Eye
michele.mccreath@visiongraphics-inc.com
Vision Graphics Inc. – connect • January 2011
4
cmo council study
Marketing Supply Chain T
here is an epidemic that threatens the optimized Marketing Supply C hain. As mar keters seek to provide the most timely, fresh and of-the-moment content to customers and channel alike, Understanding old, over-ordered or un-utilized the Critical Factors materials tend to be stored, destroyed or ignored, left to sit an to Achieving occupy costly space in offices t Marketing Supply warehouses. High levels of waste can generally be attributed to Chain Operational limited access to material utilization, a lack of visibility into Effectiveness & the operational process, and a Optimization general lack of forecasting and operational rigor . All of these factors combine to create an epidemic of waste that can be summed up most accurately as Obsolescence.
What promotional materials and marketing consumables do you produce?
January 2011 • connect – Vision Graphics Inc.
Obsolescence is not a single excessive order or single pile of un-used collateral not the issue. The pile is merely the visible symptom. In fact, it is what cannot be seen—what is behind the scenes and invisible—that makes an indelible impact on marketing effectiveness and can derail, detract or damage the customer experience. The shelf-life of marketing consumables and promotional materials has never been shorter or more challenging to manage. Marketers are spending billions of dollars pro ducing, warehousing and shipping marketing literature, packaging, documentation, point-of-sale displays, premiums, giveaways, signage and hand outs for all channels of market contact and engagement. How well this portion of Marketing Operations is managed and controlled can materially impact go-to-market effectiveness, as well as the optimal use of marketing dollars in creating business value and competitive advantage.
The Ramifications of Marketing Supply Chain Inefficiency
84%
Print collateral
72%
Presentations
66%
Folders and hand-outs
57%
Direct mail
55%
Product documentation
54%
Signage
39%
Multimedia products
29%
Premiums
26%
P-O-S display
There are two key aspects to investigate while discussing impact of obsolescence: the impact on budget and the impact on experience. Even as marketers admit to the criticality of content, 51 percent also admit to having sent out old materials containing out of date content. Why you may ask? For a small few, warehousing error (2 percent) can be blamed. And an additional 61 percent can point to their printer/agency/creative for not having the materials ready in time for launch. It is the 23 per cent of marketers who simply did not know that the old material was sent that is the concern. Are these marketers not interested in this point of the experience and engagement? Or could it be more likely that regardless of their desire to have this level of visibility, it is simply not available?
25%
Packaging and inserts
Waiting for a Priority Shift
25%
Demo software
18%
Samples
14%
Print coupons
10%
Other
The question still remains that if content is king, and if content is constantly updating and changing to deliver the most relevant and timely infor mation to customers, why are marketers not applying more rigor to managing the flow of thes critical consumables within the supply chain? However, there are still companies who are finding transformation to be a challenge. Mos
5 simply do not view the reduction of obsolescence is not a key priority (50 percent). As one marketer stated, “Waste is just taboo and a can of worms. To open it holds little reward and no compensation, so there is little motivation to start down this road.” Yet transformation is on the minds of savvy marketers dedicated to operational efficiency an effectiveness. Additionally , there are very real strategies and opportunities to engage that can work to streamline the Marketing Supply Chain.
How much of your marketing budget is spent on marketing consumables, including packaging, literature, promotional items, signage, exhibits, or point-of-sale materials? 9%
More than 60%
2%
50% - 60%
7%
40% - 50%
12%
30% - 40%
30%
20% - 30%
Obliterating Obsolescence
21% 10% - 20% The opportunity lies with marketers to transform the Marketing Supply C hain operations and 20% Less than 10% make significant strides to reduce obsolescenc and in turn, redeploy budget that was once wasted demands that all impact emissions, natural resourc- Supply C hain, experts who can apply leading on these out-of-date materials. es and carbon footprint. By applying a clear strategy practices and measures to help optimize operaLeverage digital printing strategies – in- that is focused on reducing obsolescence, marketers tions have become essential to transformation. cluding Print On Demand (POD): Digital can transform the Marketing Supply Chain into a Marketers must begin to look at these indiprinting technology has come of age, enabling eco- greener operation that optimizes spend and oper vidual symptoms of inefficiency with the Market nomic production of low print. Lower pro duction ates as a global green steward. ing Supply Chain in order to optimize budget alquantities result in a lower total cost of ownership by reducing capital investment in inventory , stor- Bringing in the Big Marketing Supply location, operational management and even the delivery of customer experience. Obsolescence is age charges, and waste. A POD strategy can further Chain Brains: Marketers are sensing that to reduce costs by eliminating inventory, storage, and truly affect change, they must turn to experts and one of the most serious challenges to Marketing Operations as it looks to undermine budget and in-bound freight costs. POD also enables more cur- third party resources who are better equipped to identify key areas of needs and transformation. As operations. The goo d news is that a streamlined rent and customizable content through the application of Web-to-Print and variable data printing, noted in the Define Where to Streamlin research, Marketing Supply C hain is possible. The challess than one quarterof marketers have undergone lenge is that in these critical times where cusallowing marketers to send personalized messages a comprehensive audit of their Marketing Supply tomer engagement is top of mind and budgets are with up-to-date content, without fear of wasted Chain. As customer experience and budget are on restricting how far and wide programs can potenmaterial with out of date of off -strategy messages the line, and as more marketers are becoming at- tially reach. W aste and unchecked obsolescence being stockpiled in inventory. tune to the money being left on the table because are no longer issues left to other departments or hidden in a marketing closet. Cross-Functional Collaboration: Marketers are of a poorly managed and constructed Marketing looking to work more closely with cross functional teams in finance, sales, procurement, warehousin How do you forecast the utilization of these items and materials? and operations to better forecast and eliminate over ordering. Far too many marketers indicate 33% We do not forecast or manage that orders tend to revolve around “per piece or inventory of materials – we order ders” or on unknown utilization levels. Through what we need when we need it collaboration across various functional areas, mar 30% Organization-wide forecasts based keting will be able to better forecast, monitor and on current and anticipated usage manage Marketing Supply Chain operations. 23% Material requests from field sales, . marketing or channel groups Go-Green to Gain-Green: When it comes to the reduction of obsolescence, the more impact made 4% Orders to replenish made automatically on waste reduction, the greater the green-gains. based on inventory, not usage forecast Obsolescence creates a very real environmental im3% Don’t know pact that goes beyond paper. Excessive ordering and a lack of process, visibility and measurement in the 2% Monthly estimates from Marketing Supply Chain often necessitates rush orprocurement and operating teams dering, additional shipping, handling and logistical 6%
Other
Vision Graphics Inc. – connect • January 2011
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Getting RESPECT
R E S P o f r s a little i ’ n i k s a r e m ’ spec I l l t “A
January 2011 • connect – Vision Graphics Inc.
7
I
n American culture there are feuds that have become legendary: Alexander Hamilton versus Aaron Burr , the Hatfields versus the McCoys, Al Capone versus Bug Moran and….Marketers versus Management. Though no bloo d is spilled in board-
rooms, these opposing forces battle it out routinely, and far too frequently, it’s the marketers who are overruled, undervalued and disrespected. So, why don’ t marketers get
the respect they deserve? Reasons range from complex physiology and sociology to simple economics. Here are a few for your consideration:
ECT
Why Marketers Frequently Don’t Get the Respect They Deserve by Lorrie Bryan
R-ROI (Return on Investment)
economy, most executive leadership teams have ROI is a term often used to subdue marketers, says gone into a mo de of extremely low tolerance for exploratory growth and high reliability controls. Jeffrey Hayzlett, hailed a “C elebrity C MO” by “Most leadership teams are content to grow Forbes Magazine. “One of the reasons that marketthe bottom line with the low-risk aping seems to take a back seat to sales and financ is that people fail to see the value of m arketing. They continually push for an ROI for marketing and many elements associated with
when
a t l i s t t u j le bit… — e m o h e ” m o c you
marketing, but they also miss the other ROI—Return on Ignoring. Metrics and numbers are extremely valuable but, it’ s about hearts and minds.”
E-The Economy Corporate America is in a financial crisis with n clear end in sight, and the effect of the crisis on the role of marketers can’t be ignored. Steve Jones, former C MO at The C oca C ola C ompany and principal at (r)evolution, says that as result of the
proach—reducing costs and increasing efficiencies—not by investing in revenue growth drivers. The recent financia institution crisis and mortgage collapse has led to new SEC regulations, tougher reporting rules, stricter banking policies and, for many companies, a loss of credit lines. The “cash is king” mentality fueled fears of investing in real revenue growth. Most organizations became so risk averse that they overtly communicated intolerance for any high-risk, unproven marketing initiatives. Unpredictable results scared most leaders. They stopped playing to win and started playing not to lose.”
– from Respect sung by Aretha Franklin, number five on Rolling Stone’s list of The 500 Greatest Songs of All Time
Vision Graphics Inc. – connect • January 2011
8
Getting RESPECT
S-Social Media
why Hyundai, a low-price brand, is busy introducing high-priced cars. And the Marketing is stuck in second gear. Al Ries, marketing guru and best-selling high-price brands are doing just the opposite—introducing low-price cars.” “In all of the meetings we have ever had with management people, we author of The Fall of Advertising and the Rise of PR, says that if marketing were an automobile, it would be making a lot of noise, but not getting anywhere. almost never hear words like focus or eliminate or contract,” adds Al Ries. “What “Second gear is social media. The entire marketing community , including we hear over and over again are words like expand, leverage the brand, develop new markets or line extensions. Management needs to recognize the difference the trade press, is fascinated by social media and spends endless hours discussing its uses and functions. It’s as if the success or failure of a marketing program between the two ways of thinking. They need to make sure their marketing hinges on just one thing—the proper use of social media. There hasn’ t been as departments are staffed with right-brainers before they allow their marketing much chatter about a single marketing concept since the rise of television in the people to formulate strategies.” 1950s, so perhaps the excitement is understandable—apparently a new medium appears only about once every 50 years or so.” C-Confusion about Marketing So, is social media important? Yes, but, as Ries So, just what is marketing? Dr. David W. Rosenthal, “The proliferation points out, “It’s only a tactic. And tactics are never a professor of Marketing at Miami University, notes and fragmentation of as important as strategies. A company can be sucthat the confusion about the definitio of marketing cessful with a goo d strategy and poor tactics, but media and the advent is problematic. “I think that there are two very difalmost never with good tactics and a poor strategy. ferent definitions o marketing. I’ll call them MARof e-commerce have The excitement about social media has blinded KETING and marketing. MARKETING is the ver trivialized the perceived sion that we teach in our colleges and universities. many marketing people to the importance of developing a good strategy. They seem to think that It encompasses the 4Ps (pro duct, price, promotion, role of the marketer.” executing an effective social media program is all and place) and much more. It includes segmenta– Dr. David W. Rosenthal, that’s necessary to achieve success.” tion processes, customer behavior , competitive poprofessor of Marketing, sitioning, environmental scanning and linkages to Miami University the rest of the organization. Overall, MARKETP-Processing differences in the brain ING represents a philosophy of putting customers In their recent book, War in the Boardroom , Al and their needs first; everything else flows from that Ries and his daughter and business partner Laura Ries propose However, the common definitio of marketing is essentially that fundamental differences in the way people process informaequivalent to promotion. “If one asks someone on the street what martion—whether the left or right hemisphere of their brain is domiketing involves, they will immediately launch into illustrations of adnant—lead to conflicts within businesses. Management tends t vertising and sales promotion. This narrower definition has becom be left-brained (verbal, logical, analytical) and marketing tends to be right-brained (visual, intuitive, holistic). Right-brainers tend to make the so widespread that it dwarfs the broader meaning of MARKETING in the public’s perception. best marketing people, but they seldom become top management types. “I fear that the confusion is so deeply established that we have lost “Marketing is considered by most management people as nothing but “the rights” to the term and need to find another “brand” for our function, “common sense.” And who has more common sense than the CEO? This is why many chief executives don’ t hesitate to overrule their marketing people Rosenthal adds. when it comes to deciding on marketing strategies. It’ s been our experience that the CEOs of most companies today are the ones who are conceiving and T-Technology developing their companies’ marketing strategies. And they tend to treat their Technology fueled the Information Age which has allowed rapid global marketing departments as the people who execute the strategies developed communications and networking to shape our mo dern society, marketby the top management team. And frankly , most corporate strategies to day ing notwithstanding. Rosenthal contends that technology has ero ded the are weak, with the possible exception of companies like Apple, Oracle and a prestige of professional marketers. “The proliferation and fragmentation of handful of other companies,” Laura Ries explains. media and the advent of e-commerce have trivialized the perceived role of the marketer. With so many communication avenues and stories of teenaged technical whizzes creating million dollar We b sites, the prestige of E-Expansion v. contraction Is marketing common sense? No; most of marketing’ s most important prin- professional marketers has ero ded. Ironically , the increased complexity calls for more professionalism, not less.” ciples are illogical. Laura Ries cites the expand-contract argument as an ex“To be certain, the ability to communicate with customers in two-way ample. “The best way to build a brand is by narrowing its focus: Driving in the case of BMW, Prestige in the case of Mercedes-Benz, Safety in the case of dialogues and the application of technology to mass-customize efficientl will be critical,” says Rosenthal. “But the essential task of marketing won’ t Volvo. But management thinks otherwise—most management people want to expand what a brand stands for in order to attract more customers. That’ s change. Find a need and fill it, efficient .”
January 2011 • connect – Vision Graphics Inc.
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T C B : Take Care of Business
“R-E-S-P-E-C-T, find out what it means to me. R-E-S-P-E-C- , take care…TCB.” The last line of Respect is often misquoted as “Take out, TCP”, or something similar, and many published music sheets which include the lyrics are inaccurate. TCB is an abbreviation that was commonly used in the 1960s and 1970s, meaning Taking Care of Business. TCB later became Elvis Presley’s motto and signature, from his necklace to his band and private jet plane. So how should marketers take care of business and earn respect? Here are some suggestions:
T - Tolerance
C-Credibility
Marketers need to advocate tolerance for explor atory solutions. We now know that we are not going back to any previous state of economic expansion and spending any time soon, and business leaders are also realizing that cost cutting and efficiencies ar not enough to grow the bottom line. Marketers have an opportunity to be a respected player as analysts and investors start to exert pressure for
Marketers need to regain credibility by under standing the new landscape and creating a new marketing model. Jones contends that marketer’ s credibility is questionable because they haven’t figured out th true value of new technology . “They haven’t fig ured out how to use it in a way that new young consumers want to use it. They abdicated their responsibility to the ad agency whose only interest
change and welcome the challenges and opportunities that it brings. “Marketing is such a dynamic field, and with technology evolv ing rapidly, it is becoming ever more complex with even more creative outlets. I think the best marketers are those that embrace change while knowing their brand and what it means to customers. They should constantly be learning about themselves, the market, customers, and new technology they can utilize.”
“Marketing is such a dynamic field, and with technology evolving rapidly, it is becoming ever more complex with even more creative outlets.” – Jeffrey Hayzlett better results driven by top-line revenue growth. However, as Jones points out, it is essential that marketers develop within the C Suite a tolerance for exploratory and insightful solutions. “They need to make the case for managed risk taking. They need to demonstrate that they understand the company agenda, can explore possibilities responsibly without betting the farm or burning unpredictable sums of cash. They need to make the case that the landscape has been shifting since we all put our heads down in September 2008. New players from India are providing better services; new pro ducers from C hina are increasing quality pro ducts; new middle classes are emerging that we need to penetrate. Consumers have completely shifted their attitudes and values and need to be approached in a new way . And marketers need to act like business leaders, not flakey ad guys.”
is the preservation of their old financial m del. “To regain credibility and respect, marketers need to take back responsibility for under standing how to use the digital and Web technology as a meaningful marketplace. They have to abandon the traditional TV advertising campaign mental model. They need to stop translating from advertising into digital. If a marketer abandons all that is old and immerses themselves in new technology and new consumer attitudes and behavior they will emerge with a whole new credible marketing mo del that will generate more sales revenue and earn them a seat at the C Suite Table.” Hayzlett suggests that marketers should be prepared for the landscape to constantly
B-Big Picture Marketers need to maintain their focus on the big picture. To be a valued player , Jones says you need to understand the current macro business context, “And figure out a valuable strate gic contribution to the CEO and total company game plan.” As predominantly left-brain thinkers, lawyers, accountants and most management professionals are more inclined to focus on the details— bean counters are good at counting beans. But as Al and Laura Ries purport, the traits that make a good lawyer or accountant are almost exactly the opposite of what makes a good marketing person. “Someone in the boardroom needs to focus on the big picture, and that is the role of the marketing specialist,” Al Ries affirms
Vision Graphics Inc. – connect • January 2011
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evolution of print
ey are not just pro h T “ vidi ng a
pr od uc t;
ts comm u n i eir clien c ate g th m or lpin e he ef f e are c it ve ey th
capa b i l i t i e s . ith new ” tly w ien ffic de an
January 2011 • connect – Vision Graphics Inc.
ly
– Peter Muir, president of Bizucate
I
t has been widely rumored that Nostradamus predicted 9/11: “In the year of the new century and nine months, from the sky will come a great king of terror . The sky will burn at 45 degrees… fire approache the great new city… there will be thunder… The third big war will begin when the city is burning…”
THE EVOLUTION OF PRINT
11
But the the truth truthisisNostradamus Nostradamusdid didnot notmake make predictions predictions about the the W World orld Trade Trade Center Center attack attack oor, r, at at least, least,none nonethat that could easily be understood from his writings. He did not mention “the new century,” or “nine months” and New York is not at 45 degrees. Nor did did he hepredict predictan apocalyptic end to the print industry. And it’s probably safe to say that the Mayan Calendar Prophecy doesn’t point to the dramatic end of the print era— in 2012—either. Yet the epic demise of the print industry has been the source of of much debate and has garnered merit with arguments ventured on either side. With 20/20 20/20 hindsight, hindsight,it’ s probably safe to say that print did not die and and is not going away , but the industry is experiencing a significant shift. In the last two decades, a industry that has had had no significant technological change
Vision Graphics Inc. – connect • January 2011
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evolution of print since Gutenberg invented moveable type in the 1400s has gone beyond adjusting to evolving. What was once a craft industry dependent upon the skill of the person driving the equipment is emerging as a manufacturing driven by bytechnology technology.. Further, Further, businesses that once provided industry driven print services servicesare are increasingly increasingly providing adjunct comprehensive just print the adage adage goes, goes,“What doesn’ t kill us makes us marketing services. As the would contend contend that this is the case with the print stronger.” And many would industry. Savvy printers are reinventing reinventing themselves, and increasingly becoming marketing service providers, not just print providers. According Murphy,, director of of Marketing MarketingAmericas, HP Graphics Soluto David Murphy tions Business, the tipping point is yet to come, but there has been a shift in the last four years that is gaining momentum. successive series series of points—technology , user be“There have been aa successive have made madeit necessary for printers to reinvent havior, economics—that have themselves. And many printers have reacted and responded with changes their future future success. success. No longer an ink-on-paper business, that will ensure their evolving, becoming becomingholistic—differentiating holistic—differentiatingtheir services with they are evolving, scope of ofofferings offeringsthat thatcompliment complimentprint, arming themselves with the a scope knowledge and andskills skillstoto become necessary knowledge become marketing service providers rather than remaining commodity providers,” Murphy says. As Peter Muir, president of Bizucate points out, 20 years ago, fast turnaround on a quality pro duct at a reasonable rate was all that printers needed to offer to survive. “However , 20 years ago, there were only four primary ways to communicate—radio, T V, print and phone. Now there are multiple communication channels and being seen or heard is harder than ever. Ads are everywhere and there are so many more messages. Few of continue to to do do things the way they did them 20 the companies that continue years ago will survive in today’s competitive business climate.” forprinters, printers,the the technology Fortunately for technology that led to communication only innovation innovation of the decade. Nearly 20 years ago, competition was not the only Indigo press press and often considered the father of Benny Landa, inventor of the Indigo digital offset printing, predicted, “Everything that can become digital will beexception.” Just 15 years ago, printers could come digital—and printing is no exception.” product. with the development of digital printnot print a one-off pro duct. But with ing, we now have Internet Internet companies companies that have 100 digital presses printing photo books one-off. Joe Truncale, NAPL president and CEO, remembers the early preof digital digital technology to change the game. dictions about the potential of the NAPL NAPL (National (NationalAssociation Associationof Printing Leadership) To p “I recall the in1995. 1995. We had two keynote speakers who Management CConference onference in the tone tonefor forthe thefuture. future.First Firstwas Nicholas Negroponte, who really set the at the time was the director of the Media Lab at MIT. The second was Tapscott, who, who, even evenininthose thoseearly years, did extensive research Don Tapscott, on digital communications. Their message was clear. As communication technology moves from analog to to digital, digital, the possibilities are nearly endless. Most of what they predicted has come to pass—though it took a bit longer than they initially thought.”
Print remains an essential part of most multi-marketing campaigns
January 2011 • connect – Vision Graphics Inc.
13
Fi v pr e y m int ea a ba des ilin ers rs a se ign g sta go se r , ar a s e na er rv ted inn PU ad ly v ice o o an R di sis ice s, ff vat m d m Ls a ng , an s an gra erin ive ar o n W d d p g ke b d eb n d hi tin ile QR d ow at c g an c es th apr d od ig e og e- es n, y ra ma , m il s.
With digital technology now in place, many many industry firms have mad made firms the leap and have become “digital printers.” Truncale says that these firm are now coming to terms with two two undisputable undisputable truths. truths.“First, “First,ititdoes doesnot not fact,when whenyou youdescribe describeyour your business by matter what your process is—in fact, your process, you are in the process of going out of business. What matters most is what you can provide for your customers and how what you provide helps them meet their objectives. Second, the promise of digital printing is not found in the box—no matter which digital press you chose—but it is found in the data. More to the point, the promise of digital printing lies in the ability to understand, store, manage, measure and analyze data.” Muir says that printers will not just survive, but thrive by continuing to add additional ser vices to leverage print services with other channels. “It’ s been proven that multichannel marketing pro duces the best results. Five years ago, innovative printers started offering mailing services, graphic design services and data-base analysis, and now they are adding Web design, PURLs and QR co des, and mobile and e-mail marketing programs. They are not just providing a pro duct; they are helping their clients communicate more effectively and efficiently with new capabilities. The transition from print providers to marketing service or solution providers is not a tremendous challenge for many printers. As Murphy points out, many of the elements needed for printers to become marketing service providers are already in place. “They are inherently creative, they have problem-solving skills and experience, and they are communicators at their core with more ways to reach buyers than ever before. They will have to constantly educate themselves so that they can continue to add value to their services.” Perhaps the single biggest obstacle for traditional print companies on the path to evolution is a lack of a comprehensive
customer-facing strategy. “In order to become a mar keting services provider , you must begin by knowing and understanding the customer’s business and what they are trying to accomplish. This selling method is far different from how sales have been generated in our industry for years,” affirm Truncale. “That means forgetting what worked in the past—for the most part, that doesn’ t work anymore. O r, more likely, it means the painful path of implementing a new business development process while hanging on to what we are doing—and getting—at least for the near term. Some sales professionals are capable of making the transition, most are not.” Marketing service providers…marketing solution providers…printers? As the industry works through the process of redefinition what is the best name for this evolving print and marketing services provider? “There is a great deal of uncertainty over what exactly we should call ourselves,” acknowledges Truncale. “C learly, we provide more than printing alone, and that is a good thing. But that naming part has emerged as a significant challenge I recently spoke with one NAPL member who told me that after struggling with this for some time, he finally hit on an idea. He aske a few of his best customers this question: ‘When you leave your place of business to come and see us, where do you say you are going?’ The majority of his customers responded, ‘ To the printer’s.’ So he decided that if it was goo d enough for his best customers it was goo d enough for him and he kept printing in his name.” Regardless of what you call this evolving industry, the fact is that print remains an essential part of most multi-marketing campaigns.“We can’t forget that print is part of the equation. People are looking for solutions and print offers more options than ever before,” adds Murphy.
Vision Graphics Inc. – connect • January 2011
14
print in the mix
Consumers Purchasing Behavior
P
rint in the Mix and ATG partnered to survey a pool of 1,054 respondents, age 18 and older, living in the continental United States to explore the consumers purchasing behavior aligned with multiple channels of Web sites, brick-and-mortar stores, catalogs, mobile devices, and customer service representatives. In addition, the survey studied consumers’ reactions to the experiences found using different shopping channels.
Methodology: Online survey commissioned by A TG, and deployed by independent online market research firm MarketTools, during the fourth quarter of 2009. The survey has an error rate of +/- 3% for each 1,000 respondents.
Six out of 10 consumers surveyed say that make The 18-34 age group makes the greatest use purchases via catalogs four times a year or more. of mobile devices for commerce – 23 percent say they make purchases on their mobile devices at How frequently do you purchase products or least four times a year, 15 percent make purchases services by looking at catalogs? monthly, and 8 percent say they do so weekly. Social media is another emerging mar Daily 1% keting channel. Top-Line Results: Like mobile, the use of social media and Consumers are using multiple channels to re3% Weekly networks is currently being adopted more fresearch, shop and purchase. quently by the 18-34 age group. When broken Nearly one-third of consumers say they rely Monthly 9% down by age group, 42 percent of 18-34 year on three or more different channels (online, inolds, 23 percent of 35-54 year olds, and 8 perstore, print catalogs, mobile devices, customer 4-6 times 47% cent of those aged 55+ say they incorporate service reps) from the time they start researchper year online purchasing activities into their presence ing products and services to when they complete 41% on social networks such as Facebook, MySpace, their purchase; Eight out of 10 (78 percent) report Never and Twitter. using at least two or more channels to perform 0 10 20 30 40 50 22 percent of all consumers surveyed purchasing research. aren’t aware of social media as a purchasing Catalogs are a strong traffic driver to the eb. 78 percent of consumers said they use catalogs Mobile commerce is playing a role in the channel. C onsumers often start browsing and reto browse and discover new products and services. cross-channel experience, particularly with searching online, yet ultimately make purchases Catalogs remain an integral part of the mul- younger consumers. tichannel shopping experience. 27 percent of consumers 18 and older are in the store. 39 percent say they went to a store because using their mobile devices to browse or research How frequently do you browse/research products and services at least perio dically--this they preferred to touch and feel the product. products or serverices by looking at catalogs? 36 percent said they visited a store to number jumps to 41percent for the 18-34 year-old compare several brands of the same product. age group. Daily 4% 22 percent said they opted for the store 13 percent of consumers are using mobile devices to make purchases at least four timesa year. because they needed the product immediately. Weekly
17%
Monthly
Take-Away: “On average, more than three-quarters of consumers are using two or more channels to browse, research, and purchase products. Because consumers are coming to merchants through multiple channels, it’s necessary to link those experiences and create a continuous conversation to avoid gaps where the sale could be lost. Merchants don’t have to necessarily serve up the identical experience in each channel, but rather optimize and connect channel interactions to deliver consistent brand experiences.”
24%
4-6 times per year
34%
Never
22% 0
5
10
15
20
25
30
35
January 2011 • connect – Vision Graphics Inc.
War in the Boardroom
book recommendation
15
Why Left-Brain Management and Right-Brain Marketing Don’t See Eye to Eye – By Al & Laura Ries
M
any people consider Al Ries’ “22 Immutable Laws of Marketing” to be the Bible to marketing success. It has long
been considered to be a fantastic reference guide for mar-
keting minds and is easily digestible. So when Al and Laura Ries came
out with “War in the Boardroom,” we just had to pick up a copy. And we were not disappointed. Some people expect us to promote books that teach sales or printing techniques. And although we appreciate some of the printing and sales literature available, we believe it is critical for us to deeply understand what makes marketers tick. Therefore, diving into a book like “War in the Boardroom” has catapulted our perspectives to another level. Al and Laura perfectly explain the difference between management and marketing through the use of well known brands like Coke, Starbucks, and GM. They eloquently point out that marketing and management are at war in today’s boardrooms. The reason for the war is that marketing and management don’t understand each other. The reason they don’t understand each other is that their brains are different. Management people tend to be left-brain thinkers; they are verbal, logical and analytical. Marketing people tend to be right-brain thinker; they are visual intuitive and holistic. This father and daughter combination explores the conflict between marketing and management and documents how it is bad for companies. The purpose of this book is to get marketing and management to better understand and appreciate each other’s roles in helping brands to succeed. However, it also provides a fantastic template for anyone working with or
You will have a better understanding of marketers’ objectives when you realize that most right-brain marketers answer to management. within a corporation. In other words, it allows us to consider the thought process of others and explains how we may need to adapt our thinking to make progress. Selling a marketing program to top management can be extremely difficult. Left-brain management is not on the same wavelength as right-brain marketing. You will have a better understanding of marketing objectives when you realize that most right-brain marketers answer to management. Therefore, to gain the support that marketing deserves, you need to learn how to help them deal with left-brain thinkers who are highly verbal, logical, and analytical. Read “War in the Boardroom.” You won’t be disappointed!
Vision Graphics Inc. – connect • January 2011
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