Creating Value

Sales departments purpose = Maximize revenue Sales departments mission = Get and keep customers – To accomplish these, an organization must create value for its product/service with a meaningful value proposition

A value proposition that is customer focused and solutions based. For example: – We are committed to partnering with our advertisers (and their agencies) by providing innovative solutions for connecting them to our audience in a way that delivers advertiser-defined results and jointly builds both of our brands.

Sales departments objectives 1 To get results for advertisers 2 To develop new business 3 To retain and increase current business 4 To increase customer loyalty - Under-promise and over-deliver

Sales departments strategies To sell solutions to advertising and marketing problems Intense customer focus Not your bottom-line focus To reinforce the value of advertising and your medium To create value for your product To become the preferred supplier To establish, maintain, and improve relationships at all levels of the client and agency (keep agency informed) To provide the best research, information, and advice

How To Get and Keep Customers Agencies = Want CPPs/CPMs/CPCs – They are experienced specialists who want only price and service. Know how they want to be serviced. Direct clients = Want results – They are often inexperienced generalists who want to know how to buy and use your medium. Know marketing.

Marketing is more complex. – Takes more time. – Requires more knowledge of the customers business. Look at Ad/Sales Ratios. – Library - Look at 100 Leading National Advertisers (Ad Age Web site Data Center) – Use Discovery Questions Papers by CW -

Sell the value of advertising vs. promotion. – Advertising tells consumers why to buy a product – long term branding effect. – Promotion tells consumers when to buy a product – short-term effect – like a drug high. Increasing advertising by 1% is more profitable than lowering price by 1% to increase volume.

Creating Value Sell advantages – Company Advantages – Medium Advantages – Product Advantages – Service Advantages Sell benefits – Position according to personal needs. See Human Needs List See Benefits Matrix

Creating Value: Selling Solutions Know your customers marketing objectives (or help define them). See Discovery Questions. – Increase market share – Increase traffic – Increase sales – Increase profit margins – Increase share of mind – Increase stock price – Increase share of voice Position your offer to fit customers objectives.

Creating Value: Selling Solutions Know your customers primary marketing strategy (or help define it). 1 Differentiation 2 Focus (niche) 3 Low-Cost Producer Position your offer to fit customers strategies (marketing and creative).

The Objectives Of Advertising To Inform – Specific information To Persuade – Creating the perception of advantages. – Unique Selling Proposition (USP) To Remind – Continual reminders of benefits

Advertising Objectives Informing – Create awareness – Communicate information Persuading – Try the product – Use more of the product

Advertising Objectives Reminding – Adoption of a product (habit) – Reinforcement – No loyalty Brands must stay competitive every day, continuously. Position your offer to fit customers advertising objectives.

Create Value EV = Q + R + S P To increase the Economic Value to the customer, raise the numerator (Quality, Results [ROI], and Service), dont lower the denominator (Price).

Value Signals Value, like reality, is a perception – The price paid is a combination of real and perceived value. Buyer perception is reinforced by value signals: – Brand and company reputation – Cumulative advertising and promotion (differentiation)

Value Signals – Sales promotion material and media kits – Case studies of advertiser success – Advertiser list – Telephone courtesy – Ethical practices – Price (high = quality) – Management visibility, credibility

Strategy = Create Value – Spend time in clients business – Client brainstorming – Creative ideas (campaigns, positioning, brand extensions, production) – Sales presentations – Salespeople

What Buyers Want Ideas Communication (targeted, helpful) Respect for their time Run as ordered Responsiveness (speed, accuracy)

Ad Age 2007 Sales Survey Report Advertising Age Reported on an Advertiser Perceptions Survey of 2000 Media Decision Makers: – In addition to brand knowledge, media buyers and planners are also looking for good communication skills, professionalism, and understanding of marketer needs and priorities. – …least important characteristics in a sales rep identified by marketers were sales presence and entertainment.

In other words, what buyers and clients want are salespeople who create value with: – Thorough knowledge of their business and priorities – Thorough knowledge of the salespersons industry – Thorough knowledge of the salespersons product – Superb, concise communication skills – Outrageously good, fast service … not always the lowest price.