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The purpose of this book is not to prove that my viewpoint
or strategy right, and everybody else is wrong. Nor is it
the purpose to indicate that there is only one way to run
an effective ad campaign. The purpose however, is to shed
a new light on an old subject, based on proven successes,
formulas, and the ways in which the human mind works.
The purpose to look at some different perspectives, and more
scientific ways of achieving greater advertising success.
Unfortunately, as with any industry, the masses start heading
down a certain advertising road, not knowing why, or where
they are going, or even who they are following. They do it
simply because everybody else is doing it. The norm becomes
institutionalized simply because it has been done by so many,
for so long, and nobody has bothered to ask why, or to look
for better ways.
This book will provide answers as to why dealers have fallen
into the advertising rut they have, as well as look at new
and better alternatives that yield greater returns when done
properly. Sometimes it takes a maverick to say “wait
a minute, why are we settling for this stale tradition of
advertising with mediocre results, when we can have so much
more!”
Although it may appear that I am against pure price and product
ads by the tone of this book, I assure that I am not. In fact,
I enjoy creating some of the best promotional price and product
ads. This book was created to tell the other side of the advertising
story, to argue a point, and to support a position with facts,
logic and reasoning. When making a point, one must often take
a hard stand to drive it home.
The topic of this book is how to advertise using a branding
campaign. There certainly are other ways to advertise, and
other ways to write ad copy, and I use them all, but for long-term
growth, market dominance, and creating an equity position
in the minds of the consumer, I do not think there is a better
strategy than a true long-term, consistent branding campaign.
I believe that Roy H. Williams, in his books “The Wizard
of Ads” and “Secret Formulas of the Wizard of
Ads” did the most masterful job ever of describing what
branding, value, and echoic recall is all about. I also give
all of the credit to Mr. Williams for his brilliance and eloquence
in describing the power of radio, frequency, and consistency.
If you are at all serious about advertising, you must read
his books, for he is a true master of radio advertising.
What is the purpose of advertising? Why do we do it? How
do we do it? Does it even work?
The stated purpose of advertising, and how to go about it,
seems to vary from one author to the next, and from one institutions
aspirations to the next. To most local business people, the
purpose of advertising is a mixed bag of objectives. And this
is one reason why we see so many poorly produced ads, poorly
executed strategies, and ads with unclear or un-motivating
messages that produce little to no results.
When people say “I tried advertising, and it doesn’t
work for me.” Or “I tried radio, and I didn’t
see any results.” What they are really saying, is that
they do not clearly know how to advertise, who they are advertising
to, what to say, how to create effective ads, or how to buy
media properly.
In a broad sense, my definition of the purpose of advertising
is to: “communicate effectively with the actual and/or
potential consumer, with a message that conveys your USP in
a precise fashion, supported by believable facts and logic,
which cuts through the competitive clutter, stirs the emotions,
makes the consumer feel good about your company and product,
and motivates the consumer to purchase from you when they
are in the market for your product.”
If you can do this on a consistent basis, to a targeted and
identifiable demographic group that is best suited for your
product, you will absolutely succeed. As long as you deliver
on the experience that you promise in your advertising.
The essential elements of a powerful branding campaign:
1. Great production quality to cut through the clutter, make
a positive impression about your company and product, and
deliver your message without the distraction of poor quality
in the sound, image, photography, editing, lighting, or effects.
2. Stellar copy that talks with and about the consumer. Copy
that uses present tense verbs, emotional appeal, logical support,
and unusual words used in unusual combinations.
3. A real USP that the public actually wants and desires,
that your competitors do not, or cannot offer, and that you
can actually deliver in a consistent manner.
4. Adequate reach to hit at least 70% of your target market
with a 3 frequency per week.
5. Total commitment to your objectives and strategy.
6. The ability to track your results, cost per lead and cost
per sale by each media outlet.
7. The ability to adequately follow-up on every lead generated,
in a timely and thorough fashion.
8. The ability to buy the proper media schedule at the lowest
cost possible.
9. The ability to deliver to the customer a consistent and
integrated message in all media used, and in every contact
point they have with the company.
10. The ability to deliver an experience that is consistent
with what is promised in the ads, so that they do not experience
“cognitive dissonance.” (An experience which is
inconsistent with their expectations, causing disappointment
and discomfort).
11. The ability to deliver a perceived “value.”
(The actual cost is less than the anticipated cost).
It’s no wonder so many business people are befuddled
by the lack of advertising success. They rarely have any three
of these eleven requirements operating at the same time.
Advertising is not a part-time thing, nor is it to be taken
lightly. The wimps and half-hearted should stay home. Being
great at advertising is like being great at anything. You
have to take it seriously, commit the time and resources to
it, stretch yourself, learn everything you can about it, study
and research it, learn the fundamental principles and rules,
test and experiment, track and monitor, and spend money on
the right things.
Whatever you do, don’t rely on your media reps for
help. Their job is to sell, and they know little or nothing
about how to advertise, and rarely does anybody else in their
organization. Media outlets are not advertising experts. As
far as your ads are concerned, the media outlets job is to
sell you ad space, produce your ads (as quickly and cheaply
as possible), and air or distribute your ads, and that’s
about it.
If you want your ads to look and sound like ads (the same
garbage everybody else is doing that doesn’t work, or
doesn’t work well), than you should have the newspaper,
or the TV or radio station produce them. But if you want super
quality production and real results, you need to become an
expert, or hire one.
The 12 C’s Of Effective Advertising
This chapter was taken from an article I wrote under the same
title for eDealerNews. It received an award for one of the
best written and most popular articles on the topic of advertising
for the year 2001. It has however, been modified and expanded
for this book.
You have no doubt heard of the 4 C’s of selecting a
diamond (Cut, Clarity, Color, and Carrot). Well, I have created
the 12 C’s of advertising. And when these 12 elements
are used together, you will have effective and efficient power
advertising that works every time!
Cut: First and foremost, you need to cut through the competitive
clutter and get noticed and remembered in a positive way.
Your copy, offer and creative execution must be enticing,
exciting, moving, and believable. You need to stand out, and
offer something stunning that people want. Like exceptionally
friendly and personable service, super convenient location,
huge variety and product selection, value-added services,
etc.
Remember, that people are more often concerned with convenience,
saving time, their image and ego, than they are with the saving
of money.
Clarity: Your message, offer, and Unique Selling Proposition
(USP) must be clear, concise and easy to understand quickly.
Keep it simple and powerful, both in design execution and
message.
Color: Use only full color ads. Color increases credibility,
enhances communication, and cuts through a sea of non-color
ads. Use colors in your logo and color schemes that fit your
image and message. Use them consistently. Use color pictures,
graphics, charts, or any imagery that will enhance and communicate
your message and offer. In a two color ad, the most powerful
attention grabbing color combinations are red copy on a solid
yellow background (Kodak logo), yellow copy on a red background
(McDonald’s logo), or black copy on a yellow background.
Carrot: You need a hook, a carrot or an offer that is going
to motivate the audience to act now. You need a call to action,
like “come in today and receive a free_______”.
Or a self-liquidator, which is a popular item that you can
buy in bulk at a huge discount, and sell them for what you
paid, just to get people into your dealership. Self-liquidators
work great as traffic builders, as long as what you are offering
is clearly in demand, you can sell it for less than what the
retail market price is, and you advertise it so that people
know about it.
Communication: You need to establish a dialog with your customers
and prospects, which requires a direct response device (phone
number, self addressed and postage paid reply card, e-mail,
etc.). From these responses, build a database of information
about these people, and a timely follow-up system, with additional
and current information beneficial to the recipient.
Commitment: You must stay committed to your advertising campaign,
your USP, your media schedule, your look, your logo, color
scheme, and your branding message. Otherwise you lose the
equity position you created.
Consistency: There are two conflicting theories in advertising.
One is the theory of “frequency,” which is based
on the theory that people must see or hear an ad at least
three times before they will take significant notice of it.
Actually, in a branding type ad campaign, where you are creating
top of mind awareness in your product category for market
dominance, a 3 frequency is required each and every week,
52 weeks a year.
The other or competing theory is “recency.” The
recency theory claims that only one impression is required,
if it is made upon a person that is actually in the market
to buy today. The recency theory assumes that if you are in
the market to buy a DVD player for example, and you see an
ad with a good price, on a quality name brand that you like,
with the features and specs you are looking for, at a store
you trust, and is convenient to you, why do you need to see
that same ad 3 times before you will act on it? As the recency
theory goes, if you are actually in the market, and you see
the ad once, and if all the elements make sense, you will
act on it.
Recency theory then, simply states that it is far more important
to cast a wide net to reach that small percentage of people
that are ready to buy today, than to keep beating your message
over the heads of a smaller audience with frequency, because
statistically, you will be talking to fewer people who are
in the market.
The recency theory is precisely why classified newspaper
advertising works so well for dealers. Despite the fact that
newspapers are losing readers and market share every year,
and the average age of the daily subscribers is going up each
year, outpacing the average age of the population. And the
fact that people spend less time reading the paper than ever
before. The fact is that the few people who are reading the
automotive classifieds are those who are actually in the market.
And the recency theory says they only need to see your ad
once before they act.
Recency theory does not account for the fact that the audience
first needs to be sold on the retailer and the product. They
need to be comfortable with the idea of doing business with
you in the first place, regardless of need and price. This
requires the transference of familiarity, trust, credibility,
and what you will do for them (save time, offer convenience,
etc). This is best accomplished through time and repetition,
before they are ever in the market to buy.
You can use price and product print ads effectively to reach
those people in the market today (recency). But they work
far better when you use branding ads in the electronic media
to convince them to do business with you in the first place.
The recency theory then assumes that the consumer of the
single ad impression already has a positive perception of
the retailer and the product. And this, in most situations,
requires a branding campaign. So you see, as with any advertising
issue, it is not all that simple. The frequency theory would
say that in order to get people to respond to a sale event
price and product ad, they first must be sold on the retailer
with a convincing branding campaign, which only works with
frequency.
As Roy Williams would say, “you can reach 100% of the
people (with recency) and convince them 10% of the way, or
you can reach 10% of the people (with frequency) and convince
them 100% of the way.”
The recency theory is only applicable for price and product
sale event advertising, and it does not work at all for a
branding campaign. Branding is not to be confused with “name
awareness” or “institutional” advertising.
Which I personally believe is a waste of money in most situations.
My guess is that 99% of advertisers, 95% of media reps, and
90% of ad agencies have no idea what branding really is, or
how to do it. And that is another reason there is so much
poor advertising, frustration among advertisers, misunderstanding,
empty promises, lies, unrealistic expectations, and wasted
dollars in the advertising industry.
Combination: In order to maximize sales, you need to get
in front of as many potential buyers as possible (recency)
on a regular basis (frequency). This requires a media mix,
consisting of a 7x15 full color ad in the automotive classified
section of the major daily newspaper every Friday, Saturday
and Sunday, which serves as the recency component, and a regular
broadcast TV schedule (not cable), consisting of at least
100 Household Gross Rating Points per week, and/or a radio
schedule on as many stations as you can afford, with at least
3 spots per day, Monday through Sunday, with an equal rotation
from 6AM-7PM. Twenty-one spots per week will give you a 3
frequency on most stations.
Cost: Your media schedule must be professionally planned
and negotiated. An expert professional approach will take
into account strict cost efficiency objectives of buying the
schedule at the lowest Cost Per Point (CPP) and Cost Per Thousand
(CPM). As well as generate more reach and more frequency than
a media schedule that is placed by a layman. More money is
wasted in advertising than you can ever imagine, simply by
paying too much, buying the wrong media outlets, the wrong
schedules, and the wrong programs. There are specific methods,
strategies, and formulas to buying and negotiating media at
rates 30-70% less than you are paying currently. You can learn
them, or hire someone who has the training, and the proven
and documented ability to do so.
Caliber: Your ad must be of a high caliber that will reflect
positively on your dealership. The only thing that the prospect
knows feels or sees about your company, is the image that
you portray in your ads. If your ads are a cheap, slapped
together low quality production, what does that say about
your company, your image and your product? The quality of
your advertising production, like your clothes, your house
and your car, are a direct reflection on who you are, your
company values, the types of customers you attract and serve,
and where you are going in the future. Advertising is the
same as courting a beautiful lady. You absolutely must put
your best foot forward in order to win the hand of that lovely
lady. Don’t skimp on production if you can at all help
it. In fact, reserve about 15-20% of your entire monthly advertising
budget for print and electronic media production.
Copy: Use advertising copy that entices, that describes your
USP or benefits in word pictures, stirs the emotions, supports
your claims with logic, and SELLS! Make every single word
count. No self-puffery. Your job is to capture their attention,
peak their interest, stir their soul, motivate and sell in
only a few seconds. Again, the caliber of production is critical.
If you don’t have a really good copy writer who can
write to move and sell, your sunk. Budget for quality production
and quality copy writing.
Cute: Avoid cute kids, pets, models, jingles or jokes if
they are not absolutely critical to the selling message and
motivation to buy. These are known as “attention vampires”
and they actually rob from your advertising impact by taking
the focus off of your critical selling message and offer.
There is a time and place, and a very effective way to use
them, but only when they are essential to the very message
itself. Michelin Tires does a wonderful job of the proper
usage of cute babies and animals in their ads. Simply because
their entire message is the safety and protection of your
most precious cargo. If the message were anything different,
the cute baby and animals would not have worked for a tire
company.
Caution: There is a an overwhelming tendency to oversimplify,
undervalue, and gloss-over the very complex world of advertising.
Everyone is looking for the easy to understand, easy to implement,
and low-budget solution to advertising. They want a quick
decision, quick production, a quick fix, and a quick response.
And that is why we see so many shot-in-arm, flash-in-the-pan
events like the “$5 Sale,” the “Slasher
Sale,” and all the other short-term sale events that
have no long-term benefits, positioning, equity building,
or real growth strategies behind them.
I strongly recommend that you implement a real strategy for
market dominance and long-term growth, by using a combination
of 30-40% of your budget on sale events, and 60-70% of your
budget on a real branding campaign that causes people to buy
from you regardless of the sale events, the blow-outs, the
liquidation sales, the rebates, and the inflatable gorilla
on the roof.
These instant results tactics may work for about 30% of the
population, but they do not generally work for the 70% of
the population who are intelligent, and who see through all
the hype and shouting. Why not capture 100% of the market,
instead of competing for the same 30% everybody else is attracting?
Why not own the hearts and minds of the market before they
ever see your sale event ads? Doesn’t it make sense
that this strategy would ensure the success of your price
and product sale ads, because the public will br pre-disposed
to shop from you based on the positive impression they have
of you through your branding campaign. Branding is really
a mental set-up for the future sale.
You set-up the public to feel good about you with a really
effective and consistent branding campaign with tons of frequency
so they can’t forget your emotionally charged message
and USP. Now that they feel good about you, and your name
has category dominance in their minds, you can occasionally
hit them with a sale event to further stimulate sales. However,
you will find, that sale events are required less and less,
as the public will automatically buy from you based on the
branding ads. Doesn’t this sound like Nordstrom?
The Importance of a Proper Media Mix
Why we don’t want to concentrate more money in print
advertising, at the expense of electronic.
• When you add an electronic media form, you accelerate
reach accumulation beyond what could be obtained by using
more of the same media form (print). By adding an electronic
medium, you extend the reach curve before it begins to flatten.
• To reach people who do not consume a newspaper, or
who are only lightly exposed to print.
• To provide additional repeat exposure (frequency)
in a different and more impactful format.
• To utilize the intrinsic values of an electronic
medium (sound, motion, sight, emotion).
• To create echoic recall through the use of an intrusive
medium (TV or radio).
• To address a different target audience. (Print skews
older, more educated, and higher income).
• To address a broader demographic audience profile.
• To reduce the effects of duplication and burnout
among heavy users of print.
• To bring about synergism. An effect produced when
the sum of the parts is greater than that expected by adding
together the individual components.
• When different advertising vehicles are used in combination,
audience delivery increases—both in gross rating points
and gross impressions, as well as total reach.
• To improve the effects of Recency.
• To confuse the competition.
• To increase the volume and variety of value-added
advertising.
• To build a brand image, which can ONLY be done with
TV and/or radio.
• To pull people into the market who are not “now
buyers.”
• To create an equity position in the minds of a large
audience.
• To leverage the value-added benefits of electronic
mediums.
• To make your print ads work better.
When Branding Works
“Branding” is one of those modern marketing buzz
words that few “experts,” ad agencies or media
reps really understand, but they are all trying to make a
buck off of it anyway. They don’t know what it is, how
to do it, or what the benefits of creating a branding campaign
are.
What is branding? How do you define it? Why is it so important
to long-term growth and profitability? What is the difference
between “branding” and a “brand”?
Do I need to pursue a branding campaign?
Is branding the consistent use of a specific combination
of colors, shapes or visuals in my advertising? Is it the
regular use of a slogan, a jingle, or a logo? Is branding
just another word for top of mind awareness in a product category?
The answer is no to all of these by themselves, but all of
these are part of a branding campaign.
A brand is not the result of branding. A brand is simply
a registered and trademarked product name and logo.
Branding on the other hand, is a process of positioning the
product or company name in the mind of the consumer, in such
a way that when they think of the name, they think of it in
the positive light in which it was intentionally positioned
by the ad campaign.
The core concept of branding is rooted in behavioral psychology
and neuroscience. In short, the actual process of branding
is the result of using echoic memory recall (the memory of
things heard) to implant an associative memory (a new memory
you create with your specially created branding message),
that has become linked to a positive memory already anchored
in the individuals mind, and then recalling that anchored
memory on demand (and thus the desired response), with a recall
cue or stimulus (your branding ad which is the associative
memory now linked to the anchored memory).
Therefore, the hearing of your branding ad, which is the
recall cue (the new associative memory), automatically pulls-up
the positive pre-existing anchored memory. Because this anchored
memory is positive, a positive feeling is associated with
your name upon hearing the recall cue.
Oh yes, this is the good stuff. The stuff that keeps me awake
at night.
Branding can also be achieved using iconic memory as a recall
stimulus (memory of things seen), but this is much more difficult,
time consuming, and expensive, as the human brain is easier
to train and condition using sounds over sight alone. To the
brain, spoken words seem to carry far more emotional impact
than written words. And the greater you can make the emotional
impact, the deeper rooted the associative memory, or recall
stimulus becomes. The deeper rooted the associative memory
becomes, the easier and more reliable it is to stimulate on
demand, and the more likely it is to be permanently linked
to the desired anchored memory.
A desirable anchored memory can be that of a very pleasant
feeling (love, security, adventure, freedom, inner peace,
social acceptance, joy, accomplishment, etc). An associative
memory must be created through consistency and massive repetition
(at least 3 times per week, 52 weeks per year, over at least
a one year period) using powerful, emotional words, sometimes
unusual words in unusual combinations, that break through
the competitive advertising clutter to stimulate the mind
in such a way that the words are tied into, or linked to the
anchored memory.
Most songs are a perfect example of an associative memory
(not the head banging base thumping crap some kids listen
to, but real songs written for real people). Songs are basically
poems with music. Poems are specifically written to be thought
provoking, and to stir the emotions.
Poems do this by using powerful words, and often unusual
words used in unusual combinations. Because of this, they
cut through the brains pre-occupation with life’s trivia,
and they get remembered. Sometimes even unconsciously. In
fact, it has been said that the average person, with the help
of another associative memory or stimulus (the music), can
remember a significant portion of nearly 1,000 songs. These
are songs we never intended or tried to remember, but through
consistency and massive repetition, they became permanently
embedded in our echoic memory.
If you read the lyrics to songs, you will find that most
of them in fact read like poetry, and most of them refer to
one or more of the following positive anchored memories, or
deep felt thoughts, or desires of: sex, love, close family
relationships, success/power/wealth, duty/faith/commitment,
beauty/acceptance/approval, or fun/fantasy/pleasure. These
are universal anchors, because every adult has them, thinks
about them, wants them, and has strong feelings toward them,
and deep rooted memories of them.
Why do you think music is so popular, emotional, and universal?
Why do young women literally cry on a regular basis when they
see their favorite recording artist sing their favorite song
live? It is literally an uncontrollable outpouring of massive,
deep felt emotions. Why do so many people like to make love
to their favorite songs? Because the song heightens the emotional
impact of the act of lovemaking. Yes, songs are poetry written
to music, and poetry stirs the soul.
Exceptional ad copy is painstakingly crafted like fine poetry.
Each word carefully appointed for its impassioned effect.
It bores through the competitive chaos with penetrating emotional
force, stirs the soul, and becomes associated in the brain
with a favorable, pre-existing anchored memory.
Like I said, this— is the good stuff.
The associative memory you create may be accomplished through
spoken words alone, or in combination with a specific and
consistent music bed, or it may be done with an exceptional
jingle, or an entire song written and scored just for you.
Remember the popular 70's song “Kodachrome?” That
song was originally written as an ad for Kodak’s Kodachrome
film.
Of course, your ad copy still needs to include a credible
Unique Selling Proposition based on believable logic, and
one that people actually feel is a real benefit to them. And
you still need to sell what people want to buy, with a level
of customer service that they expect, and are willing to pay
for.
When branding works, the individual will hear the message,
and automatically think of your dealership in a positive light.
And when they are in the market for your product, they will
automatically think of you first. Since they have all kinds
of positive associations of your dealership in their minds
after hearing your branding message so many times, they will
be far less price sensitive, and more likely to buy exclusively
from you. Assuming of course that the experience you deliver
is exactly what the customer anticipated as a result of your
ads. This is where Integrated Marketing comes into play.
Why You Need A Branding Campaign
A branding campaign is a series of similar ads with a strategic
continuity, usually four or more, each one like a different
chapter in a book. Each ad within the branding campaign series,
has the same tempo, feel, and direction. The Motel 6 branding
campaign for example, with the legendary Tom Bodet ran for
at least 14 years on radio.
A true branding campaign provides the listener with a positive
mental image of the product, the experience, and the company/dealership.
The branding ad also provides a mental escape, so it pulls
the listener in. Their defenses are down, their imagining
themselves in this wonderful experience, and before they know
it, it’s an ad for a dealership. But it’s not
pounding our chest, it’s all about what’s in it
for them. It’s about the experiences they will or can
have. They don’t care about us. They only care about
themselves. So we don’t talk about us, we talk about,
and directly to them.
Typical ads that sound like ads get subconsciously tuned-out,
because people are bombarded and overloaded by thousands of
similar ads every day, from every direction. They’re
tired of ads. They hate ads. Ads that answer the question
nobody is asking (who, what, when, where). Ads that speak
to them, but not about them. Ads that talk about the company,
and the sale price, but never stir the soul, speak to the
heart, fire the imagination, solve the yearning, or create
a desire for the experience that the product can deliver.
A true branding ad is a welcome sound. An escape from the
mundane, from the ordinary, from the predictable. It reads
like poetry, using unpredictable words in unpredictable ways.
Causing it to lodge deeply in the memory. To be recalled easily
when the individual is in the market for a car. To be thought
of in a positive light. Like a song, which is really just
poetry written to music.
Advertising is not about screaming, it’s about seducing.
The screamers are amateurs, the seducers are masters. Masters
use powerful words with emotional impact. They use verbs,
and they place the listener inside of their story, their temporary
escape from all that is dreaded in the toil of daily life.
A branding campaign will include a series of similar ads,
all pulling the listener in, and ever closer in heart and
mind to the dealer who knows their plight, and understands
their needs and desires.
In order to make a branding campaign work, you need a 3 frequency
per week, 52 weeks per year, on as many radio or TV stations
as you can afford. If done properly, it will take about 3
months to see the benefits of the campaign. And the sales
will steadily build every month from there.
A branding campaign builds “equity” and creates
a “position”in the mind of the audience. A strong
equity and positioning message creates a positive mental image,
which is essential to product category dominance in the mind
of the consumer. When you have an equity position, the consumer
thinks of you first in that category, and tends to shop you
first, and refer other people to you.
By creating a positive image and perception of your dealership
before the public is even in the market, they have become
persuaded to not only shop you first, but to be less price
sensitive when they do.
With a branding campaign in place, your price & product
sale ads will be far more effective. Why? Because now you
enjoy the power of top of mind awareness, an equity position
in the mind, and a positive feeling about your company, before
they even see your print ad.
Branding Ads vs. Sale Ads
Studies have shown that despite all their efforts and expense,
companies who only run “Sale Event” ads do not
build top of mind awareness, equity or positioning in the
mind. Time sensitive urgency type ads are not retained in
the long-term memory. There is no long-term echoic recall
of a time sensitive sale event ad.
Another concern with only running sale ads, is what happens
to the validity of the MSRP when everything is always “on
sale.” MSRP becomes meaningless when it’s just
one continuous sale. In other words, the anticipated “sale”
price becomes the beginning point of negotiations, instead
of the MSRP.
Constant sales may also erode the credibility of future sales
and the real deal.
Consider what may happen to CSI when the consumer is constantly
being exposed to ads that tout huge discounts, low prices,
low payments, and high trade values, and then their first
pencil is at full MSRP? And the only way to get their payment
even close to affordable, is to present a 72 month payment.
Yes they are sold on the car, and they are emotionally committed
to driving it home. Except now, two things happen. They are
locked out of trading for another 4-5 years, and once the
reality sets in as to what they are paying, and for how long,
they feel manipulated, and give you a poor CSI.
Sales that aren’t really sales may falsely raise expectations
to un-attainable levels, and thereby reduce CSI. When your
advertising causes people to expect big savings, a smooth
wonderful experience, and excellent service, and they don’t
get it, they experience what is known as “cognitive
dissonance,” or what I call “reverse value.”
Cognitive dissonance occurs when all along you are lead to
believe something to be true, and you are comfortable with
that belief, and counting on it to be real. And then a new
experience causes the foundation of your belief to be false.
This causes an emotional discomfort and anxiety as a result
of having two contradictory, or incompatible thoughts or beliefs.
I am not at all passing any judgement on the strategy of
constant and heavy sale advertising with steep discounts,
and then starting every deal possible at full MSRP. This can
be a very profitable approach if handled properly. However,
I wonder hypothetically, what the adverse affects of this
strategy may have on CSI, and how long it can last, before
word gets out, and the repeat business and referrals stop
coming. Food for thought is all.
The bottom line, is that if you can charge, or at least start
with full MSRP, and still make your customers completely happy
with the vehicle, the payment, and the experience, all the
better. After all, it’s a business, and a business should
make money. The more money you make, the better you can service
and provide for your customers.
Satisfaction after all is a relative and a personal thing.
An individual can be completely satisfied, even elated paying
full price, if they felt they purchased a great product, and
were treated in such a manner that justified the price. Like
a fine dinning experience. You expect to pay the price, and
you are happy to pay it, as long as the food, the ambiance,
and the service justified the cost.
A Branding Campaign is Part of the Value Equation
“Value” is the difference between the actual
price, and the anticipated price. With constant sale advertising,
we actually create a “reverse value.” Reverse
value is when the actual price is higher than the anticipated
price.
To create value on the other hand, we must create an upscale
environment and experience that causes the consumer to actually
expect and anticipate a higher price. Then, when they pay
close to MSRP, they are actually surprised at the low price.
Nordstrom does a great job of building “value.”
They created a classy , rich environment, with elegant lighting,
furnishings, decor, displays, and well dressed, well groomed,
and well mannered employees. Supported with excellent customer
service, and good quality products. All delivered at prices
that seem surprisingly low for the overall ambiance and experience.
This is value. Because the consumer expected to pay more,
and were pleasantly surprised when they paid less.
Creating a branding campaign, with an actual experience that
delivers value, will cut through the competitive clutter,
stand apart from the competition, increase referrals, profitability,
and improve CSI.
A reverse value, or cognitive dissonance on the other hand,
will always erode CSI, reduce retention, and referrals.
Integrated Marketing Communications
Is Critical To Branding
A branding campaign is most likely going to include a unique
selling proposition (USP), promise a certain level of service,
experience, selection, quality, speed, convenience, ambiance,
etc. It is critical that the customer experiences whatever
is promised when they call or visit your business as a result
of the advertising message.
Every customer contact point must be in unison, and delivering
the same level of service in a fully integrated and consistent
manner. See “Integrated Marketing Communications Is
Your Competitive Advantage” online at djsprague.com,
by Duane Sprague.
Why We Don’t Create Branding Ads
Who has the kahunas to actually create an ad that doesn’t
sound like an ad? An ad that doesn’t repeat our name
5 times, our address and phone number 3 times, and doesn’t
answer who, what, when and where? Our other dealer buddies
and “car guys” will think we were insane. We would
be laughed at, ridiculed, and embarrassed.
Ads are supposed to sound like slick ads. Yell, scream, and
make lot’s of noise like all the other ads. Make unbelievable
claims and hope we aren’t held accountable. But maybe
we can’t read the label from inside the bottle. Maybe
we are too close to our own industry to see what the public
sees.
Maybe we are so impressed with our own story, message, and
cleaver offers, and those of other dealers, that we say just
what we want to say, and not what the consumer wants or needs
to hear. Is this possible? Are we too biased to see what the
consumer sees? Could this be partially responsible for so
many public opinion surveys ranking car dealers at or among
the lowest in terms of credibility, sincerity, integrity,
and honesty? Have we in fact created this ourselves through
our own advertising that creates unrealistic expectations?
We talk to your sales people about managing the customers
expectations in terms of payments and trade value, yet we
set them up for the exact opposite with our un-attainable
low price ads. With our $49 down and $49 a month. Food for
thought.
Another reason we don’t create branding ads, is because
we compare all forms of advertising to the newspaper. It’s
true that the paper gets immediate results, simply because
that’s where the “now buyers” are looking.
But newspaper will get all the results it’s ever going
to get immediately. However, there is no building of equity,
little or no pulling people into the market, and little or
no reach beyond the now buyers. With print, there is no use
of the power of intrusiveness, which is only available with
TV or radio.
Newspaper will only build a business and market share as
large as the now market is. The now market is only a tiny
fraction of the population. For the automotive industry, only
one-half of one percent (.5%) of the adult population will
buy a new or used vehicle in the average week, in the average
market, in average economic conditions.
Based on an 11 year national average, of the .5% of adults
who will purchase a vehicle in the average week, 31% of those
will be new vehicle sales, and 68% of the .5% will be used
vehicle sales. Of the 68% that are used vehicles sales, 28%
of those will be purchased from consumers by consumers, 38%
from franchise dealers, and 34% from independent dealers.
This gives you an idea of just how tiny the now buyer segment
is for both new and used sales for the franchise dealer. And
yet, the average dealer spends 52% of their entire ad budget
in newspaper, exclusively for the now buyer. Almost completely
ignoring the other 99.5% of the adult population.
TV and radio on the other hand, has the potential to reach
virtually 100% of the adult population, and build equity through
echoic recall for future sales. Electronic advertising also
drives more traffic to the paper, giving your print ads a
turbo boost, and drives even more traffic to your dealership
that will never read the paper. Electronic creates reach and
frequency beyond the limits of the paper. Electronic reaches
the younger demo not reached by the paper. Electronic potentially
reaches everybody, including the less educated and the less
affluent, also not reached by the paper. Electronic also has
the ability to pull people into the market, that otherwise
may not have been.
Because electronic advertising uses the unmatched power of
the spoken word, it has emotional impact. Print does not.
It has been proven time and again both in sales and advertising,
that people need to be motivated through emotions, and shown
how they can justify their decisions with logic. The paper
is all about logic (price & product), but lacks the motivating
power of sound and emotion.
Motion Requires Emotion
Too often, we think of advertising and sales as two separate
and distinct functions. When in fact, advertising is simply
the precursor to sales. Great advertising sets-up the sale.
It creates the initial emotional impact that stirs the soul.
Great advertising using a branding approach in electronic
media, will increase the effectiveness of price and product
advertising in the print media. A branding campaign in electronic
media predisposes the reader to favor your newspaper ad.
Advertising tells the audience what to expect in the sales
experience. It sets them up. It manages their expectations.
Therefore, be careful what you say, and what you commit to.
We know from basic sales training, psychology, common sense
and experience, that in order to be successful at sales, you
must first:
• Do a proper “meet and greet” in order
to make the prospect feel comfortable (make an initial “emotional”
connection).
• Ask a lot of questions about their needs, preferences,
wants, and desires (uncover their “emotional”
hot buttons).
• Communicate with, talk with, relate to, and find common
ground with your prospect (make a deeper “emotional”
connection).
• Get them to like and trust you (“emotional”
feeling).
• Look them in the eye, and call them by name (“emotional”
connection).
• Sell the benefits more than the features (“emotion”
more than logic).
• Instill a sense of fear or loss if they don’t
act or buy now (“stir their emotions”).
• Boost their ego by showing them how smart they are
for making the right choice (tap their “emotions”).
When someone is not committing or buying, we often say “they’re
not moving on this” or “I can’t get them
to move any further.” What we are saying then, is that
sales requires “motion,” and motion is fueled
by “emotion.” Every sale is made based on an emotional
appeal or emotional charge, and then justified using logical
facts and data.
So I ask you, why is it that when it comes to advertising,
we throw all emotional appeal out the window, and simply rely
on who, what, when and where? How exciting and emotionally
charged is that? How is a logical ad going to stir the emotions?
Have we completely lost the subtle art of persuasion and
seduction when it comes to advertising? Are we so stuck on
price and product ads that we have completely lost touch with
the human psyche? Have we forgotten that people are purely
emotional, pleasure seeking, ego gratifying, narcissistic,
acceptance oriented creatures?
Now I ask, who is easier to sell, and do so at a descent
profit, the person who walks in holding a price and product
loss leader ad with payment and terms, and says “I want
this truck right here, and I’m not paying a dime more.”
Or the person who walks in and says, “I’m looking
for a new truck to pull my boat.”
Emotion Requires Sound
In order to appeal to the emotions, you must utilize the
intrusive power of sound.
To motivate emotionally, you need to utilize words with emotional
impact, verbs, and unusual words used in unusual combinations.
You need to tell a story that places the listener inside
of the action. You need to speak to the listener, and about
the listener. You need to cut through the clutter of ads,
and break into the listeners subconscious mind with powerful
imagery.
Print advertising is passive, and cannot generate the reach,
frequency, or emotional impact, which is available only through
the power of sound.
The long-term recall of ad slogans, jingles and songs is
proof positive that the intrusive nature of sound, combined
with frequency and consistency will create an equity position
in the listeners mind.
Echoic Recall Requires Frequency
In order to establish a top of mind awareness in your product
category, you must have at least three repetitions per week,
every week of the year. Which is exactly how you remember
the lyrics to popular songs on the radio. You simply hear
them over and over.
The General Population
100% of the Market
Market Responds To/Requires:
? Branding
? Top of Mind Awareness (TOMA)
? Unique Selling Proposition (USP)
? Equity Position
Creates:
? Product Category Dominance
? Competitive Posturing
? Long-Term Growth
With:
? Echoic Recall
? TV
? Radio
Requires:
U 3 Weekly Frequency, 52 weeks per year
U Emotional Impact
U Strategic Consistency
U Integrated Marketing Communications
U Value Creation
2 Completely Different Markets
Everyone is in one market or the other, and they move back
and forth.
A branding campaign on TV and/or radio, makes the price &
product ads work better.
The “Now Buyer”
1.3% of Adult Population
per week
Market Responds To/Requires:
? Reticular Activator (stimulates embedded thought or memory)
Creates:
? Immediate, but Short-Term Results
With:
? Iconic or Echoic Stimulation of Reticular Activator
? Newspaper
? Auto Trader/Auto Mart
? Internet
? Direct Mail
Requires:
UPrice & Product
U Sale Event
U Promotion
Why Ad Agencies Don’t Make the Best Media Buys,
and Why “Volume Buying Power”
Does Not Equate to Client Savings
This chapter is not designed to undermine the value, skills,
creativity, resources and talent that ad agencies bring to
the table. It is simply here to shed some light on an area
of weakness in the vast majority of agencies. As with any
type of business or individual, you cannot be excellent at
everything. You have only so many hours and resources to devote
to any specific area, and therefore some areas are going to
be overlooked or ignored more than others.
For ad agencies, media buying (not planning) seems to be
the area that gets overlooked the most. Why? Because for most
ad people, it is not exciting, sexy, or creative. Therefore,
media buying suffers for the following reasons:
• Agencies typically work on a 15% commission of the
total media buy. A cost savings to the client would therefore
reduce their own commissionable income. So why break your
back to save the client money?
• Agencies see themselves as “media buyers”
instead of “idea sellers”. In order to be a truly
exceptional media buyer, who can extract every last bit of
bonus, value added, and the very best rates obtainable, with
an optimal schedule, you need to know how to sell your ideas
better than the rep knows how to sell their time or space.
This caliber of person does not exist in the agency media
buyer.
• Agencies typically buy and negotiate over the phone
instead of in person. This is the worst possible way to negotiate
a media buy.
• Agencies make annual buys out of convenience and
time savings for themselves. And justify it to the client
by saying that it saves them money. When in fact, the primary
benefit to an annual buy is to guarantee placement. And the
only way to guarantee placement is to pay a higher, non-pre-emptable
annual rate. An annual buy can save money over a quarterly
buy, but all too often, I have seen the agency buy considerably
higher than it could have been bought for.
• Agencies rarely drive the boards they are buying
or negotiating on. If they did, their clients would not be
on a sizable percentage of the boards they are, and their
vinyl would be in better condition.
• Agencies typically make media budget allocation decisions
based on a national formula, that does not allow for local
market conditions and anomalies. (Salt Lake City for example
has only a 52% cable penetration compared to the 79% national
average).
• The media buyers in an agency are some of the lowest
paid, least trained, least educated, and least respected in
the company, and consequently they have the highest turnover.
The vast majority of top agency executives are promoted from
Account Executive positions, and a few from creative, but
virtually never from the media buying department. Since media
buyers are in a dead-end job, with low pay, no incentives,
relatively high turnover, little training and little respect,
how good of job do you expect them to do?
• Smaller and local agencies many times make media
buying decisions based on incentive trips for themselves,
and not what is in the best interest for the client.
• The smaller agencies may also make a package media
buy that is beneficial to one client, and detrimental to another.
For example, they may commit to buying $500,000 on a particular
network or cable system for the year in order to get a better
rate and qualify for a big trip. They will then place all
their clients ads on that particular network. However, that
particular network may not contain the best audience composition,
or reach the best geographic market area, or offer the lowest
cost per point or cost per thousand for the other clients.
Another game they will play, is to buy a huge block of time
on a network or station in order to please their biggest client
with better rates. And then force their smaller clients onto
that station in order to fulfill their contract.
• In short, agencies that work on a commission basis
are typically self serving, and will never look out for the
best interests of their clients, and look for every opportunity
to save their clients as much money as possible. Why? Because
squeezing every last dollar in additional value for the client
is time consuming, tedious, and requires a great deal of skill
and experience.
• The other built-in problem with agencies, is that
they are typically egotistical creative shops driven to produce
ultra creative cutesy commercials to win awards and gain recognition
from their peers. The problem is, that the most creative award
winning commercials have almost always been the biggest failures
in terms of generating sales and results for their clients.
In fact, almost every agency that won an award for their clients
commercial, lost the client within a year due to lack of ROI.
Creative does not sell product, effective communication to
the right audience delivered consistently over time in a variety
of media formats does.
• Another reason agencies put so much pressure and
emphasis on super slick and ultra creative commercials recorded
on film instead of digital video (which when done properly
by people who know how to use the equipment, can produce the
same or better quality as film, at a fraction of the cost),
is because they typically mark-up all production by 18%. And
obviously they stand to make a lot more on a $30,000 commercial
as they would on a $5,000 spot.
• The media buyers in an agency are not trained in
high-level negotiation skills, sales techniques, communication
skills, marketing concepts, promotions, or the basic principals
of advertising. So how in the world are they supposed to have
a solid understanding or skill base in which to effectively
do their job?
• The media buyers are typically the most removed from
the client, and have the least understanding of their budget,
history, objectives, targets demos, competitive pressures,
market conditions, USP, etc.
As an example, when the agency for Oldsmobile planned their
target demo for the new campaign “It’s not your
fathers Oldsmobile”, the media planners specifically
did not want to target the typical Oldsmobile buyer, the 45
plus crowd. Instead, they wanted to target the younger driver.
However, when it came down to the media buyers, they bought
the same programming on the same networks they have always
bought, thereby not only missing their target demo with a
new spunky campaign, but they also isolated their existing
buyer with a message belittling to them. And where is Oldsmobile
today?
The actual buy is far more critical than most agencies give
credit.
Another example, is when a local agency/promotional company
put together the radio buy for a Dodge dealers tent sale.
They bought all of the stations in a particular radio group
because they were able to get better rates and more remotes
by concentrating their dollars with one group. However, they
never thought to look at the station formats, their audience
profiles, or the qualitative data to see if those stations
even made sense for Dodge owners or prospects. In fact, half
the stations did not.
• With the large agencies, all the media buying is
typically concentrated in one office in one city. How much
does someone in Denver or Chicago really know about Modesto
California or Wilkes-Barre Pennsylvania in terms of local
media market conditions and opportunities? Unless of course
they perform their due diligence and spend a few days in the
local market to uncover the nuances, and meet face to face
with the local media reps.
I can assure you, that most media buyers from large agencies
do not travel to the local market.
• Agency Account Executives spend too much time and
resources on “client relations” and not enough
time on research, negotiations, tracking, testing, and working
for the good of the clients advertising budget. By the way,
who do you think really pays for all those lunches, golf outings,
event tickets, and other gifts? You do of course. There is
no free lunch.
Defining the Issues
In order to be successful in business, as well as in advertising
and marketing, everything must be done for a very specific
and objective reason, to reach a defined and measurable goal,
and it must be the quickest, cheapest, or best way of reaching
it possible.
Decisions that are made on a whim, off the cuff, or without
proper research, contemplation, and analysis, will surely
be inferior ones. Following is a step by step process used
for making good advertising and marketing decisions. Although
a lot more goes into than meets the eye, this is a great place
to start.
1. The TOWS or SWOT analysis:
Before you make any advertising or marketing (positioning
or branding) decisions, you need to clearly understand the
arena in which you are playing. A good place to start is with
the TOWS analysis. Conduct this analysis both internally and
externally:
Threats: Internal or external issues that may pose a risk
to short or long-term profitability, growth, sales, expansion,
a new product launch, positioning, etc. May be a competitor,
legislation, market conditions, technology limitations, human
or capital resources, training, facility, location, etc.
Opportunities: Internal or external trends, opportunities,
market conditions, unmet desires or needs in the market, new
technology, departed competitors, new growth areas, new advertising
mechanisms, resources, etc.
Weaknesses: Internal or external problems or barriers that
may prevent you from capitalizing on the opportunity, goal,
or objective.
Strengths: Internal or external advantages, systems, processes,
technology, patents, extra-ordinary human capital, product
line, etc., that may allow you to capitalize on an opportunity,
or reach an objective.
2. GOAST Analysis:
Once you have defined the current threats, opportunities,
weaknesses, and strengths existing within and outside of your
organization, and you feel that you have a realistic perspective
of what you are capable of, conduct a GOAST analysis.
Goals: What exactly do you want to accomplish in the short
and long-term? And in what time frame? The more specifics
and details you can commit to paper, the better.
Objectives: Who will be involved or affected? What will the
outcome look like? How will you measure or define success?
When will you start? Where will it take place? What will it
cost, both in hard dollars, and in lost opportunity cost (what
other options or opportunities will you have to forgo to achieve
it)?
Audiences: Who will be targeted? Will it be customers, prospects,
suppliers, vendors, wholesalers, retailers? Define your customers
or prospects demographically, geographically or psychographically.
What information and databases do you have, and what is available?
What are the needs, wants, and desires of the target audience?
What are their media consumption patterns? Who do they currently
buy from and why?
Strategy: What is the overall philosophy, concept, process
or approach? What is the game plan?
Tactics: What are the specific methods, tools and executable
processes? What are the check lists, time tables, to do lists,
and specific tasks that need to be done? What are the mechanics?
3. The Creative Brief:
O.K. Now that the concerns, issues, and goals have been defined,
it’s time for the Creative Brief. This is where you
will actually begin the process of defining the campaign,
and the ads themselves. No ad should ever be made in a vacuum.
Every word, every visual, every nuance must be mapped out
and crafted as part of the bigger picture. And every ad must
be part of a bigger campaign. A campaign is a series of similar
ads, all of which support the central theme, message, and
branding objectives.
Every ad must be integrated and consistent with every ad
in every other medium. They must work in harmony, as a unified
force, all supporting and building on eachother. Standards
must be defined and adhered to in terms of graphics, copy,
USP, theme, call to action, emotional appeal, and logical
support. No ad is an island, or a single event.
Define the Subject: The product or service to be advertised
(who, what, when, where, why, how).
The Personality: What are the attributes or characteristics
of the product. What are the emotional and logical aspects
that can be exploited? How does it make people feel or look?
How does it affect their lives?
Current Market Situation: What are the market trends, conditions,
competitive activity, advertising spending, strong holds,
and opportunities?
The Consumer: Who are they? What do they know about the category?
What are their demographic, psychographic, and geographic
profiles, lifestyles, and purchase behavior?
Consumer Perceptions: How does the target consumer perceive
the product, the competition, you? What do they perceive their
options to be?
What Do We Want Consumers To Believe? About the product,
the service, the company, the image, the cache?
Why Should They Believe It? What evidence do we have? What
has been their previous experience? What USP do we offer?
Can we explain our USP in a simple, logical and believable
way?
Why Should They Care? Why is our benefit, offer or USP more
relevant than our competitors?
What Should They Do? What action do we want them to take
after seeing our communication and offer? What should they
think? How should they feel?
Mandatory Information: What are the advertising mediums to
be used and why, what are the time tables, budgets, specs,
logo usage, graphic standards, response device, etc.
4. The Advertising Plan:
Next, put together your Advertising Plan:
Communication Goals: What do you want to say and to whom?
What will the feeling and tempo be?
Positioning Statement: How will you position the product
in the consumer’s mind? What category will you try to
own or dominate? What words or images will be most effective
in establishing the position?
Creative Strategy: What graphics, images, analogies, comparisons,
visual support, sounds, colors, angles, settings, etc. will
you use to project the proper feeling, position and message?
How will you break through the clutter with a compelling,
interesting, informative, and believable message that is succinct?
Media Strategy: Which mediums will you use to deliver your
message? When will they be used, with how many gross impressions,
over what time frame, and with what frequency?
What is your goal for TRPs, GRPs, reach and frequency? What
is your goal for cost per point and cost per thousand by daypart,
by medium, and by quarter? What are these goals based on?
Will you focus on reach or frequency? Will you buy a vertical
or a horizontal schedule, or both? Why? Will you buy a consistent
schedule or will you flight? Why? Will you buy early week
or late week? Why?
Will you base your media mix decision on? Will it be audience
duplication, unique audiences, geographic reach or audience
reach, cost per impression? Why? Which mediums will be used
for reach, and which for frequency? Which mediums will be
used for the now buyer, and which for branding? What percentage
of the budget will you use for each? Why? What are the unique
strengths and attributes of each medium that you will use
to base your decision on?
Is a media mix required at all? Will you be better off as
a dominant force in a single medium?
What quantitative and objective data will you use to support
and justify your media decisions, scheduling, and budget?
What subjective and qualitative data will you use?
Once you feel comfortable with your answers, you’re
ready to begin writing your ad copy, producing your ads, and
buying your media schedule.
Who said advertising was easy.
Summary and Outline of Power Advertising Principles:
• Minimum of 3 frequency per week on Tv and/or radio,
52 weeks per year in good times and bad, for category dominance,
and echoic memory recall.
• As sales and income increase, add one station on
top of the other, don’t switch around, or you lose equity.
• Maintain consistency in the campaign style, look,
USP, sound and theme. You can change copy, but maintain a
thread of continuity. Motel 6 and Tom Bodet are an example
of a 14 year long, extremely successful radio branding campaign.
• Sunday through Wednesday has less clutter, and can
usually be bought for less.
• Don’t skimp on the quality of your strategy
development, copy writing and ad production. Remember, your
ads are an extension of your store, and they must reflect
who you are, what you stand for, your USP, and the experience
the customer can expect to have. Your ads must instill a feeling
of confidence, professionalism, and convey a strong benefit
to the customer, with emotional impact.
• Use newspapers for immediate results this weekend,
with sale events and price and product. Don’t buy more
than a full color 7x15 on Friday, Saturday, and Sunday. Use
classified liners for used cars Fri-Mon. Use a reverse block
for your logo in classifieds. Advertise 20 to 35 used cars
in classifieds at a time. Include your web address.
• Use TV and radio for branding. Remember, branding
is not “name awareness,” or “institutional”
advertising.
• Use radio for echoic branding, frequency, and a low
CPM.
• TV should support the radio branding campaign.
• Use outdoor for support of your USP message and echoic
imagery, and directional.
The true secret of advertising success, is to say the right
thing to as many people as you can afford to reach over and
over. Write good copy with emotional impact, using unusual
words in unusual combinations. Use verbs, and speak directly
to and about the listener. Place the listener in your ad.
Advertise consistently and with strong frequency.
It’s not as important who you reach, as it is what
you say. It’s not who you know, it’s who knows
you, and how they feel about you.
A major university conducted a comprehensive advertising
study with hundreds of businesses over a seven year period.
In their 2,500 page report, they came to 3 conclusions. One
of those conclusions was that two identical businesses, selling
the same products, using the same stations, and with the same
frequency, can have radically different results, based entirely
on the advertising message.
McDonald’s became the world leader in fast food sales.
And the thrust of their advertising, positioning and merchandising
does not even target the decision maker, they target the influencers
(kids).
The average listener on the average station will hear 1 out
of every 7 spots aired M-Sun 6A-7P (5A-8P on the East or West
Coast). Therefor, on the average station you need to run 21
spots (plus or minus 2) per week, M-Sun 6A-7P. This will deliver
three-quarters of the stations weekly cume.
If you have a special event, run 1 spot every half-hour,
beginning at the time the event starts, and then working backwards
until you get to 6A, or until you run out of money. If you
get to 6A and you still have money, buy overnights (12Mid-6A),
and buy in the previous day, also working backwards. If you
still have money left, buy another station in the same fashion.
To really drive the success of the event, buy 1 spot per hour
for 13 hours per day (6A-7P) for the 5 days prior to the event.
And buy as many stations as you can afford. Negotiate bonus
spots and :10 promo spots to run after 7P.
Every dealership thinks they have to target the male demo
25-49, or 25-54. While the female buyer and influencer is
wide-open, as well as the kids. Kids have a big impact on
the final decision of a family vehicle. Not only that, but
men are typically more difficult and more expensive to reach.
Own the minds of the women and the kids in your product category,
and you will eventually own the market. But don’t give
up on the men, they can be had easily enough in the classifieds
and one or two radio stations.
Those who buy GRPs almost always reach too many people, with
too little frequency.
The business owner is uniquely unqualified to see their own
products, and advertising message objectively.
Branding:
• Use an emotional appeal with strong copy
• Involve the listener with the use of “you”
and verbs
• Tell your unique story that benefits the listener
• Use the intrusive power of sound
• Build frequency, consistency, and continuity
• Use a USP and IMC
• Build value
Create an emotional message that can link (associative memory)
to an established anchored memory, and then use frequency
and consistency to embed the associative memory so deep in
the mind that it becomes a recall cue.
The goal of branding, is to establish category dominance
in the mind of the consumer way before they are in the market,
so that when they think of your category, they immediately
think of you, and in a positive way. These people become influencers
before they ever become customers.
You must take a stand, and be known for something positive.
By running 3 good branding spots per day, 6A-7P, 52 weeks
per year, you can dominate a category with nearly 66% of the
entire cumulative audience of 2 or 3 radio stations. Which
is a whole lot more profitable than making no real impact
on the entire market with the typical shot-gun approach.
Win the heart, and the mind will follow.
Short-term sprint advertising (sale and event spike advertising)
is a race for fools. It is a poor marketing strategy, because
it trains your customers to wait for the next sale, which
is always right around the corner. With a good branding campaign,
they will automatically think of you in a positive way whenever
they think of your category.
Newspaper is a sprint medium. It only reaches that 1% with
a price & product message, who are actively in the market
today. The other 99% of your ad dollars are completely wasted.
You will see immediate results, but those results will not
increase over time. There is no building process, no share
of mind, and no lasting impact. Plus, you are not using the
emotional, long-term memory impact of sound.
When you have to dump excess inventory, or you need to raise
cash immediately, but don’t want to train your customers
to wait for the next big sale event, run a 7x15 full color
newspaper ad. Make the product, price, and time limit very
large, and your company name very small.
The Yellow Pages is a service directory for those people
who have no preference whatsoever over who they do business
with. These are price shoppers.
Broadcast, with power of sound, wins the heart and minds
of the public long before they are in the market for your
product. These people are less price sensitive, they are more
pre-disposed to buy from you, and will shop you first.
Don’t keep changing your target demo, media schedule,
media mix, and message. Buy it properly from the beginning,
for the right reasons, with a solid 3 weekly frequency, and
a great campaign of similar spots, and leave it alone. You
don’t build a foundation by laying 3 bricks down, removing
2, laying 3, and removing 2. You build by laying one brick
after another, cementing them in, and laying another.
In building a brand name that will endure and generate profits
year after year, there is no quick fix that has any permanency.
Sale events are quick fixes, but do not build a brand name
or permanent name awareness. They deliver everything they
are capable of delivering instantly, and that’s it.
Advertising schedules should be proposed and considered according
to their reach and frequency, and then, if all else is relatively
equal, they should be compared against each other on their
CPP or CPM.
An advertiser can dominate a single medium (newspaper, TV,
radio) in a small to mid-size market with one million dollars
per year ($83,300 per month). Each additional medium costs
another million per year. However, depending on the market,
a dealer should be able to spend $40-60k per month on print
for price & product, and $70-75k on radio or TV for branding,
plus $4-5k per month on a quarterly mailing to the customer
database for service & sales retention.
When you truly understand what advertising is all about, you
realize that advertising, marketing, PR, merchandising, sales
training, follow-up, tracking, POP, signage, packaging, even
the phone system, are all interrelated and interdependent.
The success of one, relies on the success of the other.
It’s called Integrated Marketing Communications, and
every element, every customer contact point must be singing
the same tune on key, or the song will sound terrible to the
customer. And that my friend, is why people hate dealing with
car dealers. Their song sounds awful. The ad says one thing,
the sales person says another. The ad promises one experience,
the customer gets an altogether different experience.
Writing Effective Branding Advertising Copy:
• Write in a poetic style, using unusual words in unusual
ways.
• Powerful First Mental Image (FMI). Support copy builds
on the FMI. Ending with a powerful Last Mental Image (LMI).
Tie the FMI and LMI together, so that the LMI brings you back
to the FMI, but with a unique perspective.
• Use words that have an emotional impact.
• Engage the imagination.
• Use verbs in the present tense (action words).
• Justify your claims with logic. Support your claims
with facts and logic that make sense, and then guarantee them.
• Explain how you can save the listener time.
• Create and promote your USP. Your USP must be a true
and valuable benefit to the listener.
• If you use a jingle, use only top-notch professional
ones (there are very few), that support the copy and USP.
Integrated Marketing Communications (IMC):
• The customers experience must reflect the promise
and USP conveyed in your ads. This makes for a high CSI.
• Create value. The customer must feel that they received
a good value for their money. Value is created when the anticipated
price is lower than the actual price. The anticipated price
is based on the level and quality of the service, the staff,
merchandising, ambiance, displays, lighting, furnishings,
product presentation, value-added etc.
• The first contact point to the last must be consistent
in the quality of the experience.
• The advertising message and theme must be consistent
across all mediums.
• The advertising, marketing, PR, merchandising, facility,
staff, etc. must all work together to create consistency in
the look, feel, and experience.
Other:
• Create your strategy and branding campaign such that
you are in the game for the long-haul. Plan on a slow, but
steady growth at first, and then a doubling of your business
every year after the first year. Plant apples, not straw.
• Expect the “regression to the mean.” This
is nothing to panic about.
• Invest in training.
• Always make room for the best people.
• Sell what people want to buy, and provide the level
of service they expect. Which is the same level of service
you want for yourself, and your family.
• When your shooting for the very top, plan for some
failures, set-backs, cost overruns, and dead-ends. It happens
to the best people, with the best laid plans.
• Study, analyze, and learn from past mistakes and
successes. These are the predictors of the future more than
anything else.
• Change in all things, markets and situations is predictable,
so plan for it, embrace it, and go for the gold. There is
no safety in “playing it safe.” As the world will
move on without you.
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