Results Driven Marketing in a Down Economy… Name Title Event U.S. Postal Service

Today’s Conversation  The Landscape  Recession Spending in Action: A Look Back in History  Survival Guidelines  Direct Mail: The Marketing Workhorse  Where to Turn

Today’s Economic Landscape  GDP growth turns negative  Job losses accelerate  Housing market stalls  Families feel the pressure  Wages still up due to low inflation Source: Economic Snapshot, Center for American Progress, April 2009

Consumer Attitudes  Economic downturns instill anxiety  Energy and food prices are on the rise  Frugality is standard operating procedure  Pragmatism and escapism are not mutually exclusive Source: Tuning Into The Recession Mind-Set, Forbes, February 2008 Consumers are saving more, spending less!

“Marketers from various industries are feeling the pinch of belt-tightening with their budgets.” Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008

The Marketing Snapshot  69%  69% are reducing advertising budgets  63%  63% are reducing production budgets  63%  63% are being challenged to reduce expenses and cut costs  61%  61% eliminating or delaying new projects  63%  63% restricting travel Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008

“In fact, SPENDING MORE during tough times when competitors may be scaling back is a good way to STRATEGICALLY BOOST MARKET SHARE… Source: Bob Liodice, President and CEO of the ANA

A Look Back in History

The Great Depression  Many companies benefited from aggressive marketing  Consumers looked for better deals  When spending picked up, loyalty was established Source: How Brands Thrived During the Great Depression, Strategic Marketing Concepts, February 2009

Depression Spending in Action Chart: P&G: New and Improved How A.G. Lafley is Revolutionizing A Bastion Of Corporate Conservatism, Business Week 2003

Depression Spending in Action

Survival Guidelines for Businesses

Examine Your Costs

Make Strategic Cuts

Stay Close to Your Customer

Explore New Opportunities

Think Like a Marketer

Monitor the Competition If they’re cutting back, it’s the opportunity to consider increasing your marketing budget

Avoid Gimmicks Your customers need messages that center on the benefits and advantages of your product or service. Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Stress Benefits and ROI Source: Facts On The Value Of Marketing During An Economic Downturn/Recession What’s In It For Me

Focus on Metrics  Test  Know the behavior of your segments  Adjust  Watch spending Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Re-examine the Marketing Mix Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Use Direct-Response Techniques Hard-hitting copy and a strong call to action Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Direct Mail The Marketing Workhorse

 PERSONAL  Use the customer’s name  Provide relevant information  55% of customers “look forward” to receiving their mail  TARGETED  Focuses on a specific group  Strong ROI

 FLEXIBLE  Choose from a variety of formats  Include special offers, samples or coupons  TANGIBLE/ CREATIVE  Places your message in their hands  Makes an unforgettable impression  Your piece can be passed along

Direct Mail The Marketing Workhorse

 MEASURABLE  Easy to track the results  Allows you to adjust mailings based on success  Calculate price per lead  GREEN  Post-consumer content  Consider paper weight  Alternative materials  Chemical-free processes  Experiment with formats

Results Driven Marketing

The Reason

Components

Components

Components

Case Studies

The Challenges  Generate reservations for opening of 135 luxury guest rooms and offer discount  Cut spending on mass advertising media  Attempt to gain market share when sales are down  Advertise to promote iconic brands otherwise risk losing customers

David Rawle Chairman, Rawle Murphy Advertising, Marketing, and Public Relations Agency

Wild Dunes  Challenge:  Challenge: Launching a luxury product during a recession  Solution:  Solution: Combine product and incentive offer using a multi-channel marketing campaign

AT&T  Challenge:  Challenge: Increase cross-selling among customers despite high turnover  Solution:  Solution: Integrated plan led with Direct Mail kits

John Klemets Marketing Manager, Dell Consumer Division

Dell  Challenge:  Challenge: Grow market share despite shrinking budgets and current economy  Solution:  Solution: Integrated plan with multiple Direct Mail executions

Jeff Meyer Sr. VP, Marketing & Sales - Feld Entertainment

FELD Entertainment  Challenge:  Challenge: Continue to advertise to promote iconic brands otherwise risk losing customers  Solution: Direct Mail lead the way for decision- making of destinations for events and inventory

The Results 3,000% ROI 10% 40%,20%  In total, 3,000% ROI from the campaign. Length of stay increased by 10% from prior years, online revenues increased by 40%, call-in revenues increased by 20% positive ROI  Mailing more next year based on the positive ROI generated from this year’s mailing campaign 200% ROI  Early access to a sale’s event generated a 200% ROI  Positive RIO  Positive RIO is the indicator for each given market around the country

Summary  Listen to the market  Invest in your customers  Offer value and demand greater value  Increase communication  Step up your advertising  Make smart decisions

Resources People  Postal Customer Councils  USPS Sales Force  USPS BSN Places  Brains on Fire  Brand Channel  Duct Tape Marketing Things  Deliver and

Any Questions?? Thank you for your time!