Mad 4 Blog

Mad 4 Marketing, like all agencies today, is evolving its RFP processes to successfully communicate with Procurement departments in addition to the marketing and advertising executives we’ve traditionally worked with.

The recessive economy has forced companies to try and do more with less. That creates a cost driven emphasis that creates concern. The core question is what are our clients most interested in? Quality? Results? Lower cost? Of course they want all three. The concern that agencies have is that once the selection process is handed over to Procurement, regardless of the wording in the RFP document, low price wins.

Ad Age editor Jonah Bloom reports that nine out of ten procurement officers have had no experience in marketing before their current role. At recent events like the Association of National Advertisers (ANA) annual conference, and the American Advertising Federation’s annual Hall of Achievement awards, speakers pointedly critiqued and condemned the procurement trend as strangling creativity and innovation.

Yet complaining to each other will not help. The procurement trend is driven by economic reality. The result has been an attitudinal shift that will not change in the near term. Agency prosperity will depend upon what it’s always depended upon – selling the value. The difference is that we must sell the value to an audience that may not fully understand the differences between offerings.

Agency response to the changed environment can take several directions. Let’s call the first option the “Sharpen Your Pencil!“ response in which we minify expense wherever possible, take aim at a projected winning bid, and find a way to get there. This response is short sighted.  It will win some accounts at the lowest acceptable margin, but the question is whether we can provide our best work, get the best results and keep that client for the long term, not to mention living the agency brand which is inextricably tied to quality.

A second possible path is the “Stick to our Guns!” scenario. This response, in which the agency takes a stand and prices/proposes exactly as they’ve always done, is an equally ill-conceived strategy. It says to the client that your agency is unmoved by their concerns. Even winning accounts, you’ve established an us vs. them relationship that is likely to result in perceptions damaging to the long-term health of the partnership.

In my opinion, a better option might be called “Let’s Play Ball!” In this scenario, the agency proactively works to find a business structure that may look different from historical models, but speaks to client concerns, while allowing the agency to produce at a high level and be profitable. Two obvious questions, what does that mean specifically? And how does one present new business concepts within what are often rigidly structured RFPs based on an assumed business model, i.e., a matrix of hierarchical roles and their related hourly fees.

To answer the first question, it’s a matter of business creativity. We are seeing a lot of experimentation now. Some powerful clients like Coca-Cola and P&G are mandating versions of value based pricing. As the mega agencies continue to deal with that reality, no doubt some of the finer business minds will find ways to turn a negative into a positive and find competitive advantage in adapting to performance based compensation models. Some smaller agencies are giving up on the thought of hourly fees and adopting a project based pricing model, even in an Agency of Record context.

The more difficult question is how to pursue such strategies within the rigorous confines of RFP rules. Depending upon how tightly a given RFP is structured, agencies may need to wait until short-list presentations to plant those seeds. It can certainly be a question during the question period, “May we present alternative compensation models?”

But in the long term, it’s an educational process. Business development people should be including procurement leaders in their outreach. As previously mentioned, 90% do not have marketing backgrounds and would benefit from being part of ongoing dialogue. By creating relationships before the RFP process, you might find a more beneficial set of RFP rules and review procedures taking place. We’ve done educational campaigns for clients. This one’s for us, too – to enable more powerful, and long-lasting agency/client partnerships.

Every year, businesses put aside a heft of their marketing budget for “in-season” advertising. In Florida, the peak tourist season spans from approximately December to March, when snowbirds head south for winter. Consumerism increases, and companies reach out to the influx of eyes and ears (and wallets) with targeted seasonal advertising.

And that’s a great idea. Ads are able to reach a wider and more diverse audience than they can throughout the rest of the year. Companies can use the same local exposure to reach new clients and expand brand awareness. However, there are also several reasons why businesses should limit in-season marketing, and recalculate their advertising budget for year-round investments.

The main reason is that seasonal advertising leads to seasonal business. If most of your advertising is aimed at those who only live in-state for one third of the year, it means you won’t be seeing business for two thirds of the year. Although you want to capitalize on seasonal crowds, make sure it’s never at the expense of the non-seasonal market.
Here are some tips for balancing your own seasonal advertising strategies to cultivate new business and keep it going throughout the year:

Maintain a Year-Round Presence
For continued brand awareness, it’s important to not only make a significant first impression in someone’s mind, but to repeatedly announce your brand, products and services until your prospective clients become familiar with who you are and what you can do for them. That means you should reinforce big in-season advertising campaigns with year-long reminders. This is not only good for encouraging new business, but will also remind past clients of your excellent services, and inspire them to use you again.

Never Automate Your Advertising
Even though you want your target audience to repeatedly encounter your brand throughout the year, what you don’t want to do is desensitize your audience to your message. Therefore, be sure that you’re constantly announcing yourself from new angles via mixed media platforms. Did you launch a comprehensive print ad campaign last season? Maybe this season calls for a radio spot or viral marketing strategy. Staying fresh as you frequently present your brand will keep your company top-of-mind. Another strategy is to run your ads erratically; instead of placing an ad in the paper every week, create a varied schedule so that it catches readers’ attention each time it’s viewed.

Catch the Less-Targeted Off-Season Audience
Think it’s brilliant to advertise at the height of the season? So does everyone else. Although in-season advertising has its merits, it also means heavy competition. On the other hand, advertising during the slow season means that your message may be more prominent, and have a greater opportunity to sink in. Everyone wants to stand out in the crowd, but doing so may come
at a high cost during the winter months. Meanwhile, when the season is slow or in transition, making an impact is not only more affordable, but poises you to reap high rewards—without all the hassle, pressure, cost and competition.

Although Florida’s busy season may tempt you to chase new and varied business, remember to never undervalue the merits of consistent business. Balanced, year-round advertising is the way to create a strong and lasting presence with loyal, return clientele.

In today’s economy, traditional mass media advertising (newspapers, TV, radio) may not be within your budget. A grassroots approach—using alternative media and promotional tactics—is the perfect way to make a big impact with your campaign. The grassroots approach might even be the most strategic way to get your business noticed, because it largely relies on thinking outside of the box.

We explain how nontraditional marketing was used to promote a unique client: Satori, the first eco-friendly apartment rental community in Fort Lauderdale. Which of these strategies might you use to make a big impact with a limited budget?

#1: Be Creative with Media
With a small portion of the budget allotted for print advertising, placement decisions had to be very strategic. By running ads in community newsletters and local niche magazines (especially issues focused on eco-features), targeted readers were informed of all the unique ‘green’ amenities at Satori.

Taking advantage of roadside space at the construction site to flaunt colorful, billboard-sized signage further increased awareness and name recognition.

#2: Interact with the Community
To complement the apartment rental community’s Zen theme, pedi-cabs (also known as “rickshaws”) were hired to give free rides at special events, like the Las Olas Art Festival. The cabs–and drivers!–were branded with Satori graphics, and riders were provided information and handouts. Not only did this improve local brand awareness, but the free rides extended good will throughout the community.

Satori was also advised to make strategic decisions to sponsor local events, such as an eco-friendly exhibit at the Museum of Discovery and Science and a membership meeting of the Gay & Lesbian Community Center, which was hosted on-site at the leasing center.

#3: Expand the “Dot Com”
The ad agency’s web development team utilized SEO tactics, blogging and a controlled pay-per-click campaign to achieve weekly site visits of over 500 unique visitors–generating an average of 50 leads per week for Satori. Today, the website ranks on the first two pages of Google with over 200 keywords.

#4: Befriend Technology
Website functionality was then expanded to include an interactive touch-screen display. This cutting-edge feature allowed potential renters to select floor plans by defining their own criteria, and then acquire real-time rates and availability. They could also click to explore local points of interest.

Mobile marketing was employed to boost awareness. Ads encouraged viewers to text a special code word to #34343 to get directions to the leasing center and updates about upcoming promotions. The code word changed for each campaign  so the response could be tracked and measured. The big sell was that each text automatically qualified its sender to win six months of free rent!

But did these creative grassroots tactics drive traffic to the leasing center? Ultimately, the campaign created enough buzz to keep Satori top-of-mind for Fort Lauderdale’s new lessees. Residents were ready and eager to move in when the property opened this month.

Satori’s success makes it obvious: you don’t need a giant budget to market your business–just an open mind, and big ideas.

When times are hard and budgets tighten, the first thing most businesses think to do is pursue new clientele. But don’t be surprised if marketing agencies remind you to redirect some resources toward client retention, rather than client acquisition. Putting aside part of your budget to nurture existing client affiliations is a trustworthy investment in today’s economic climate. Here, we have identified five key elements of relationship marketing:

1. A Little Goes A Long Way.
The clients and customers who have a home in your digital rolodex are those who already know and like your business. When you take the time to reach out to your mailing list, a little goes a long way. You don’t need to woo them or explain your services. Marketing to existing clients can be just a friendly way to maintain a connection, get back in touch and keep contacts up-to-date about your company’s latest developments.

2. Extend Brand Familiarity.
Brand awareness goes beyond a brief introduction to your company. In fact, though awareness develops the moment a prospective client learns about your brand, it must then be grown by repeat encounters with your business’s name, logo and services. Over time, a mere recognition of your brand will deepen into familiarity and trust. Not only will clients return time and again, but they may even spread positive feedback to others.

3. Get to Know Your Clients.
By cultivating long-term relationships with existing clients, they’ll come to trust your company—but you’ll also be able to get to know them. A long-term relationship means that you can study customer likes and dislikes by welcoming feedback and collecting data about how they interact with your brand. As you learn your client base, you can tailor future marketing endeavors toward them for even greater response. You can also target new audiences who share the same needs and preferences.

4. Take Advantage of Social Networking.
By using the social networking platforms that are already in place—such as Twitter and Facebook—you can easily stay in touch with clients and customers. As soon as you build a relationship, you can open a line of communication and create a reciprocal pathway for feedback and the exchange of ideas. You can also share updates about services, specialties and successes within your industry. Clients will never feel like you’re out of reach, and you’ll be easy to access when they’re ready to buy. Letting people feel connected to your company is an easy way to create dependable, long-lasting relationships.

5. Show Your Appreciation.
Always remember to show gratitude for ongoing patronage. November is an excellent time of year to show your appreciation, before your gesture gets lost in the chaos and solicitations of the holidays. Just saying ‘thank you’ with a small gift or postcard can show that you value your client’s consideration, serve as a reminder of your existing relationship and greatly increase your chance of working together again in the new year.

One way to make your marketing go a long way is to partner up with a complementary business to create a mutually beneficial campaign. Recently, Mad 4 Marketing was invited to participate in a series of seminars hosted at Regent Bank sites throughout South Florida. By participating in these seminars, Mad 4 Marketing was able to advertise its expertise through Regent Bank’s promotional efforts, while Regent Bank was able to provide industry-specific guidance to their customers. This situation created a harmonious opportunity for both businesses, allowing Mad 4 Marketing and Regent Bank to get the most out of their combined advertising efforts.

Regent Bank developed this seminar platform as a way to provide a valuable service to their current client base, while attracting attention from prospective bank customers. This valuable marketing strategy was a way to welcome a broad audience to their local bank sites, where they would be able to connect with bank employees and learn about the bank’s new promotions. Topics included:

•    Top Tips is Today’s Economy for Condo Boards and Property Managers
•    Navigating the Changes in Small Business Administration Loans
•    Is Your Networking Strategy Working For You?
•    Unconventional Marketing Methods for Unconventional Times

Mad 4 Marketing benefited from this opportunity because it allowed the company to reach out to Regent Bank’s diverse customer base from a standpoint of industry leadership. Introduced as a knowledgeable and trusted resource to the bank, Mad 4 Marketing was put in a very strategic position to generate new contacts and represent the company. Mad 4 Marketing was also able to invite their own regional contacts in Boca Raton and Davie, Florida, to hear Chris Madsen, Amy Chattin and Tiffany Tobol share their marketing insight. Chris Madsen, President of Mad 4 Marketing, spoke about creating 360 degree campaigns. Amy Chattin, Director of Client Services, introduced the merits of non-traditional marketing techniques. Tiffany Tobol, Director of Interactive Marketing, addressed interactive marketing strategies for small businesses.

And of course, those who attended these seminars benefited from the chance to hear experienced professionals provide guidance on a number of relevant topics, at no cost to them. Seminars were held either before or after work hours, and light refreshments were served. All seminars offered attendees the chance to network and make connections with the bank, seminar presenters and each other.