The Fear and Loathing of Advertising (Part 1 of 3)

The Fear and Loathing of Advertising (Part 1 of 3)

"There's nothing I'm afraid of like scared people" - Robert Frost In 40 years of working in the advertising industry, I have never sensed so much negative feeling toward advertising agencies among small business owners as I do today. In the past, networking events were an important source of new business opportunities for me. Now when I mention that I own an advertising agency, people cringe, glaze over or slink away.

What has happened? Has the business world changed? Is there a fear of the unknown? Or has advertising failed to achieve the respect of small business people? I think it's all three.

Let's begin with how the business world has changed. Most small businesses have less liquidity than in years past. Seeking the most bang for their buck, they choose social media based on its reach and affordability. The opportunities appear endless. Many business people think they can create their own message and control where and when it gets circulated, without outside help.

Another change is driven by the media itself (newspapers, TV, radio stations). To secure the placement of ads, commercials and even direct marketing initiatives, they waive or hugely discount production costs. Cutting even deeper into the heart of the traditional advertising agency, they give the client the 15% commission they used to give the agency for its time and coordination efforts. All this sounds like savings for the small business person.

Let's return to social media. Indisputably it's a great advance in communications. But exploiting its potential requires specialized knowledge. Working on your behalf, a social media expert can help determine the motivations and habits of your prospective and current customers, craft messages that will resonate with them, and reach them exactly where they are. He or she can also ensure your social media campaign is proactive and consistent. Best of all, the price you pay a social media professional will provide a measurable return on your investment. Read my past Sticky Note, "So, How's Your Social Life" or "Email Marketing & Social Networking" for more insight.

However, you get what you pay for.

And what about those great savings on traditional media (i.e. who needs an ad agency)? For you to compete successfully, you have to have a brand  (LBA), an instant recognition that says you're good, you're trustworthy and you're successful. When the control of your message and how it looks is left to your media partners, the brand gets lost. These guys' objective is to sell space - whether magazine, newspaper, radio, TV or coupon mailer - not help you beat out your competition. For that, you need someone dedicated to your objectives.

Have ad agencies dropped the ball? Probably. Some have failed to deliver on their promises. Perhaps they've overreached. Or maybe they just got fat and lazy. It makes me crazy to think this is so. Surely there are exceptions. Unfortunately, it doesn't take many bad experiences to create fear and loathing for an entire industry. Everyone deserves to get what he pays for.

Here are a few suggestions.  Pay attention to the advertising of like products or services of successful companies. Find out who created the marketing and interview as many of those providers as you can. Don't be swayed by cutesy, clever ads (Refer to my Sticky Note, "I Traded a Gun for a Stick"). Often these are designed to win awards for the agency, not sell product for the client. Judge the agency by the results they've achieved for their customers, whether it's gaining measurable information, building loyalty or increasing sales. Hire the best and hold them accountable.

This is the end of Part 1. Parts 2 and 3 will be coming to you soon. Parts 2 and 3 will cover why most companies have a fear of the unknown when it comes to advertising.

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Get Your Foot Off the Break!

GET YOUR FOOT OFF THE BRAKE Consider today's Sticky Note as an open letter to advertising agency clients. Although most clients who work with an ad agency will give lip service to wanting to be Bold, Innovative andCompelling, most are really a stumbling block. Unfortunately, many insist on ordinary. Somehow playing it safe is the name of the game. I have personally run into many business owners who refuse to be different. They insist on using methodologies that imitate what their competition is doing rather than being innovative. For example, I recently pitched a car dealership that spends a fortune in local advertising. As our meeting progressed, I felt a real disconnect in that his only concern was the need to do the same things, in the same way as his competition. In other words, be as obnoxious in his ads as his competitors. The loud, cheesy ads are what you get when allowing the media outlet create them.Anytime I mentioned a new and unique approach, I was immediately shot down. Perhaps if he was open-minded and less of a know-it-all, his marketing would be more successful. Check out the 1961 ad by Ogilvy & Mather for Rolls Royce, below. Although the agency may have pulled the Rolls-Royce ad headline from a line that appeared in a printed MOTOR article -- (Notice the quotation marks around the headline) Ogilvy saw the grabber of a headline and ran with it. Today this ad stands as an icon and David Ogilvy a legend in daring to be different. Does anyone not get the headline message? Does anyone not want to read further? "At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock" Now, that being said, not all bold, daring ads are successful. Advertisers and their agencies should never forget to sell the product not the ad.Daring without sell is a waste of an opportunity. Leo Burnett said it best in that an ad should say, "Here's what we've got. Here's what it will do for you. Here's how to get it." The key is to make sure that the selling message gets seen, read and acted upon. This is where a great agency becomes worth their salt. Most viewers only read an ad's headline. So, start by making the headline compelling enough to be read and motivate the reader to read on. If you have a headline that screams, let your visual whisper and vice versa. Clean, well-designed ads are more successful than cluttered ads where every inch of the space is crowded with information. These ads leave the reader not knowing where to look first or what the key selling point is. The imagery and the copy need to work in harmony.   This is where being bold plays out. Think of the DDB (Doyle, Dane & Bernbach) ad for Volkswagen. How great was Volkswagen as a client to allow an ad to run with the headline "Think Small"? Did they know their customer and what they wanted? You bet. Keeping the message simple avoided confusion and made it memorable. Lots of white space is my favorite.  Even the best and most creative agency can't make a bad product better. This, of course, is the job of the client. It can, however, make a parody product distinctive by learning everything they can about the product and understanding the audience. Find that singular product benefit for the customer and pound that message home. Ever face someone trying to sell you something you don't need or have the slightest interest in? The most critical component is to be honest. Remember, advertising is people talking to people. Who wants to do business with people they don't believe or trust? Sometimes clients want to avoid unpopular subjects. If the subject is relevant, run with it. Some of you might remember the 1962 ad for Avis, "We Try Harder." The ad, subsequent tagline and positioning was adopted in 1962 to make a more positive reference of Avis' status as the second largest car rental company in the US behind its larger competitor The Hertz Corporation.  TO ALL ADVERTISERS Can you really get these types of legendary messages from that newspaper producing your Print Ad, your TV Spot produced by that TV station or the Direct Mail campaign created by your printer? It takes a copywriter who writes like a poet, visuals designed by an artist and an agency who cares more about making great advertising than making money.Let your agency break rules, be uncommon and then get out of the way. It will amaze you what your agency can accomplish when clients inspire agencies and allow them to improve their ideas rather than waste time having to defend them. GET YOUR FOOT OFF THE BREAK AND WATCH YOUR AGENCY ROLL!    ***Although these ads are from the 60's, they are still relevant to today, proving that great advertising is timeless.

What Makes You So Special?

WHAT MAKES YOU SO SPECIAL?

When you started your business or took the helm of a company that's  been around for awhile, you did so with a sense of what it is that makes  your company special. When you know your business's unique qualities,  as a product or service and are able to communicate it to your customers  -- that, in its simplest form, is Branding.

When you have a clear concept of your brand, every action your  business takes becomes an opportunity to strengthen and build that  brand in the minds of your audience. Remember, your brand is who  you are and how your audience knows you. It serves as a portal to  everything you do - a concept that represents your entire business:  value proposition, quality, pricing, people, relationships, reputation,  service, innovation, corporate stewardship, etc. Discover and nurture  your brand identity in the marketplace, by crafting a selling premise  that communicates these positive elements -- whatever it is that represents  the heart and soul of your company. Does your brand suggest the promise  of your product or service that will make the buyer more successful,  better looking or happier? These values need to be delivered with  continuity through all media networks. This may include, but not  limited to, your logo, positioning statement or tagline, your  collateral and ads. Perceived quality is the only brand association to  drive financial performance. Think about the brands that you buy and why.

If You're a Start-Up...

Developing a successful brand, for a start-up business, in some ways  may be easier and in others more difficult. It's easier because there  are no historic negatives to overcome. On the other hand, without  customers, there is no way to accomplish actionable research as to what  customers think of you and your product or why they purchase from you.  With a brand-new business, the sky's the limit as to what you can say about  your business and what it offers. Backing it up is the challenge. However, without a track record, how do you deliver believability to your promises?

A new business should first concentrate on the competition within its  chosen industry. What makes you different and better? Vigorous competition  results in price pressure and difficulty in gaining and holding on to a position.  Discover which benefits you can communicate to separate your business from  that competition and result in sales.  Limited financial resources, for marketing, may be a detriment when competing  with established, well funded firms. This is where branding is even more critical.  If you remain true to who you are as a business, develop the right messaging  when communicating to your audience and remain consistent, you can  overcome and beat out the competition.

If You're an Existing Business?

The challenges for an existing business are just the opposite than those  of a start-up. As a company that's been around for awhile, there may be  some history that needs to be built upon or overcome. There is the  benefit of having a customer base that can be surveyed for actionable  information. Surveying the customer base should be an on-going and  regular process. Are they happy with your product or service? Why do they  continue to buy from you? If possible, even query those customers you've lost. Established businesses also have an advantage in knowing and understanding  their competition. Of course, updating and readdressing the brand may be necessary.  You don't look, dress or even think the way you did a number of years ago.  We don't use the same phone, computer or get our information in the same  way we did before. The proliferation of new media demands change.  Communicating the benefits of the things we sell and who we are, if working,  shouldn't be changed. How we communicate those benefits must change  with the times.

Use the Lippi & Co. QR Code

In a Nut Shell...

Let's look at the ways to cohesively structure your brand identity making it easier to gain recognition. - Visual Imagery - The Nike Swoosh - Projecting what your organization stands for - Fundamental values - Programs can create a recognizable brand (i.e., Ronald McDonald House) - Value Proposition - Functional Benefit, Emotional Benefit which  creates a relationship with the customer and drives purchasing  decision and reassures that they have selected a quality company.

Lippi & Co. is now offering a  FREE BRAND AUDIT!  If you are a viable, licensed business and want to take advantage of this offer contact me. Larry Lippi 704.995.9966 larry@lippi.com

I Traded a Gun for a Stick

I TRADED A GUN FOR A STICK

Trading a gun for a stick might seem like an odd transaction to be discussing when my Sticky Notes are usually about marketing. Let's look at the complete story and the reasons why this tale is completely relevant. One Christmas when I was 10 years old, Santa brought me a brand new Davy Crockett cap gun. It was the shiniest, coolest toy I had ever received. It gleamed with authenticity and functionality. It was the cap gun every little boy wanted at the time.

After drooling over it for about a week, I finally built up the nerve to take it outside to show my young cowboy buddies. Living in the Bronx, I could conjure up 10 or more friends with little effort. Each one of my buddies was completely in awe of my new toy. Most of my companions also received some form of cowboy or Indian paraphernalia that Christmas. This, of course, quickly led to a high-energy game of Cowboys and Indians. I was the envy of the entire group, except for Little Al. You see, Little Al was small in stature, yet large in street smarts. His family was always struggling financially. As I remember, he was the only kid who would get a used bike from Santa. On this particular day, Al, who didn't have any cowboy or Indian stuff, had found in the park where we were playing a remarkable tree branch.

After he meticulously peeled away all the bark and carved a fairly convincing handle at one end, it was the coolest stick I'd ever seen.

Although the stick was silent, didn't shine and had no working parts, there was something about that stick. Al had to add the sound effects to make the stick convincing as a gun. It wasn't until after the game of Cowboys and Indians that the stick really began to show its magic. Throughout the rest of the day, Little Al's stick became a wand, a spear, a walking stick, a bat and an air guitar. On the other hand, my cap gun needed caps. Once the caps were gone, my gun was just a prop. Little Al's stick, however, was so much more. All that was needed was a bit of imagination, and Al had it. Can you guess where I am going here?

I traded my gun for that stick!

Little Al understood the benefits of offering a convincing Value Proposition. Definition of Value: the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange. Monetary value is not always the value of something to its end user.

So, my little story now brings us around to the real message of this email. What is a Value Proposition and how do we create one for your service or product?

As a marketer, my goal is always to fashion my client's Value Proposition to fit the audience - just like my decision to trade with Little Al. The value of the stick became more and more appealing, as my needs changed throughout the day. Al recognized this and knew how to position his stick by selling its benefits. Not everyone in our gang would have been open to the trade. I was Al's perfect customer, and he knew it. After all, even then, I had an active imagination and loved creating things.

The first rule in creating a Value Proposition is understanding your customer.

This comes from securing customer feedback. Do the research. The more you know about your customer, the more likely you are to develop a message that answers his or her needs. My answer was to have a toy that I could play with all day, and didn't need caps. What you establish may not be for everyone. It should, however, resonate with your best customers.

"Things only have the value that we give them." - Moliere

The next rule is to develop a Value Proposition statement to be used as a blueprint to maintain a consistent message in all communications. In today's fast-paced, media-driven society, it's critical to deliver a message that cuts through the mustard quickly. Whether you're using traditional media methods or social or electronic media, a clear and concise Value Message will create a position for your offering in the minds of your potential and existing customers. Be sure to share the things that make you unique. Share this proposition internally with your employees as well. Don't under estimate the importance of getting employee buy in.

Everyone in your company can be a salesperson at any given time.

Most importantly, don't get caught up in selling primarily on price. The benefits of a product to a customer must transcend its cost. Does your product make the consumer more beautiful, healthier, smarter, sexier, etc.? What can be said about your product that your customer can experience? Make your customer understand what you are promising that your competition can't. The result will be a sustainable message, successful for now and into the future. Remember, your customer has many alternative products to choose from. Can you answer the question in ten words in less, customers when they ask, 'What's in it for me'? What Value Proposition will make him or her buy from you?

"Price is what you pay. Value is what you get." - Warren Buffet

So, who really made out better? It seems it was a win-win situation. Little Al and I both received the value we wanted. The cost of the trade was never an issue. Of course, my mom had a different take on all this. She made me return the stick and get my cap gun back-she just didn't get it. She wasn't Little Al's customer.

Forget Mad Men, Hire the Corleone Family

FORGET MAD MEN,

HIRE THE CORLEONE FAMILY

That's right. Who needs a mamby pamby bunch of whining ego maniacs like those at Sterling Cooper Draper & Pryce (SCD&P), on the TV show Mad Men. Are they really concerned about helping their clients, or are they more interested in satisfying their own desires? If I were choosing a group to handle my marketing, I would much prefer an organization with an understanding of how to be successful. I'm talking about the Corleone family run by Veto Corleone (The Godfather).

His style was to eliminate the competition and win over customers by "Making them an offer they can't refuse". Sometimes the offer came in the form of financial reward. Other times, it was offering the benefit of a strong and trustworthy partnerships. Perhaps this was even more of a benefit than financial reward. Corleone knew what he was selling and why people wanted it. In all cases, the Corleones used the tried and true strategies that brought success to all their endeavors. From the very beginning, Corleone understood the power of BRANDING. He had the guts and the smarts to devise a plan to eliminate his most dangerous competitor, Don Fanucci. (The Black Hand of the controlling mafia).

Corleone built a Viral Marketing campaign by directing those who questioned his strength to ask about his reputation through word-of-mouth throughout the neighborhood.

In their own way, the Corleones understood the power of Public Relations, think about the way in which the Corleone family used the press to cover Michael's killing of Solozzo (the guy who tried to have Veto eliminated) and the corrupt police captain. This news story could have been the downfall of the family. PR was and can be an important ally to the family and any company, in order to offset a serious negative.

Later, in Godfather II, Corleone's son Michael tried to reflect his family's corporate stewardship initiative, another form of PR, by giving a significant endowment to a local public university.

The Corleone brand was built on specific attributes. Keeping their ethics high, by refusing to sell that "White Powder", never refusing a favor to a friend and always making money for his partners. This organization didn't take kindly to carousing or spending money wastefully. They spent their time understanding their customers' wants and needs and researching the competition. Luca Brasi, the family hit man, although a failed initiative, was sent to infiltrate the Tattaglia family. His assignment was to gather critical information to help the Corleones position themselves.

"Keep your friends close and your enemies closer".

When the time was right, the organization focused on a Brand Extension by making a move to Vegas. Once again using a viral approach to business growth by getting Johnny Fontane to fill the casinos by utilizing his famous and popular celebrities friends. Sometimes celebrity endorsements work. The most consequential difference between the Corleones and SCD&P boils down very simply to leadership. Corleone's leadership kept the brand consistent and directed, while motivating the entire family. When you look at SCD&P, there isn't a leadership focus with all those egos getting in the way of a singular focus, both for the company and their clients. In the search to create an excellent corporate machine, Corleone eliminated the loose cannons in the organization due to their own carelessness or at the behest of the Godfather.

Of course I wouldn't really want you and your agency to "go to the mattresses" and use criminal and gangster tactics. I do, however, like looking for the marketing strategy behind successful operations. It's fun to think through all the similarities between this great movie The Godfather and the power of Branding, Research, Social Media and PR.

Leave the gun, grab the cannoli.

You Don't Need a Bazooka To Kill a Fly

YOU DON'T NEED A BAZOOKA TO KILL A FLY

Hey Mr. or Ms. Real Estate Professional! As the housing market begins to turn around in the Charlotte region, how does a realty firm like yours increase its marketing efforts effectively, yet affordably? Effective marketing, when planned properly, can be affordable. Sure, today everyone is watching every expense. It is a mistake, however, to view marketing and advertising as an expense. IT'S AN INVESTMENT.

TARGET, TARGET, TARGET The fact is, the right message at the right time to the right audience with the right offer will give you the marketing results you seek. This is precisely why we at Lippi & Co. favor direct marketing.

LET'S START WITH THE FACTS.

WHAT HAVE YOU GOT TO SELL? I'm not talking houses here; I'm talking about separating your services from the competition. You must think hard as to what it is that benefits your clients by working with you instead of someone else. You'll need to be real creative to increase listings, inquiries and sales. Pick an area in which you are recognized as the expert. These areas may include, but not be limited to, urban, suburban, new homes, condos, short sales, etc. Once you establish that position, own it.

IT'S A BATTLE OUT THERE.

Just like in combat, you'll need a battle plan and strategy. Plan the actions necessary to reach your objectives. If you've done the research and your plan is solid, do not deviate from it. REMAIN CONSISTENT AND ON POINT IN ALL COMMUNICATIONS. Next, develop the tactics. These should include methods necessary to get your message to your target audience. If you can cluster your audience into groups, it will make it easier and more affordable to reach them frequently. Here is where Social Media allows you to cluster your audience and get them talking amongst themselves. FREQUENCY IS KING

LET'S LURE THE AUDIENCE.

The tools you want to use are the ones that cost the least and put you in front of the lowest hanging fruit as often as possible - easy to reach and ready to be picked. By keeping your costs low you can do more. ONE AD WON'T DELIVER THE RESULTS YOU'RE LOOKING FOR. Not only should you maintain multiple impressions in a particular media outlet but utilize multiple forms of media. Not everyone is reading, watching or listening at the exact time your ad is running. Please, whatever type of advertising you do allow for a response mechanism which will give you feedback from your potential client and allow you to test your advertising effectiveness. Add every inquiry and contact to a database. Your database should be built from potential customers, current customers, former customers and if possible, your competitors customers. I would suggest capturing email addresses from these groups, allowing for a less expensive form of communication via email. YOU'LL WANT TO STAY IN TOUCH WITH YOUR TARGET. Not everyone you reach will be in the market for your services at the exact time they got your message. However, if you remain diligent and consistent, you will be remembered down the road.

AND NOW FOR THE KNITTY GRITTY.

Any ad placed can be easily missed by the flick of a page or change of channel. Your ad needs to be bold enough to command attention and focused enough to generate a response. Trends may come and go, but good advertising never goes out of style. The use of a timely delivered of message will get you the results you want. Capture the customer's interest and get them to buy. REMEMBER IT AIN'T CREATIVE UNLESS IT SELLS.

Sales Begin Before Your Salesman Calls

SALES BEGIN BEFORE YOUR SALESMAN CALLS

This decades-old ad absolutely hits the mark. It was produced by McGraw Hill Magazines and was meant to entice corporate advertisers to think about the power of advertising. You may or may not consider marketing important in this economy. I'm sure you can recognize the difficulty of having your salesman face a cold, uninterested stinker of a potential customer, like this guy. If a company chooses to ignore the benefits of creating a positive brand image, they take the risk of handicapping their sales force when they are trying to make a sale.

Remember, Everyone is a Consumer.

What consumer doesn't want to do business with someone they know and respect? This is why many corporations have found success in marketing their corporation versus purely marketing their products. Customers measure Brand Equity through Brand Associations to determine who the corporation is and what they represent. Are they good stewards? How do they treat their customers and their employees? Are they community oriented? All these factors serve to increase Brand Equity and employee morale. Seeing their company name in the media builds pride among a company's workers. Ok, start from the beginning.

First and foremost you must Set a Clear Objective.

What is it you want your marketing efforts to accomplish? Analyze the task by asking who do you want to reach and what do you want them to do once you've reached them? With all the new electronic media and proven traditional media available, it is critical to choose the most effective and least expensive avenues available. In some cases pure Public Relations may suffice.

There is no one size fits all.

Social and Viral media are very affordable, but may not work to target your audience. Even if these methods reach your audience, they may not be able to stand alone without the support of more traditional tactics.

So, once you determine the task, it is necessary to Establish A Budget.

You don't want to spend more than you can afford. You can't plan the building of a house without the architect knowing the dollars available. Once your architect designs a house, if you can't afford it, he can't remove rooms and expect the structure to stand. The same holds for a marketing budget and plan. After a Budget and Media plan is developed, it's time for the fun stuff. The Creative. Number one, know who you are talking to and what they're looking for. Your potential and existing customers want to realize a benefit from doing business with you.

This benefit is known as the Value Proposition.

This message needs to be easily communicated and understood. The graphics should never get in the way of the overall message. Yes, you want your ad to be noticed, but in a good way. Stand out from the crowd by offering information that the recipient wants and needs. Most foreign firms talk features. They chest pound how they are the best in their category. In the USA it is more important to sell the benefits to the customer. Americans want to know, "What's in it for me?".

Remember, it ain't creative unless it sells.

Always, and I mean always end with a call to action which enables you to collect information. Open a dialog with your audience. The worst advertising is that which leaves a consumer without a response mechanism. How would you ever know if your advertising is working or if you've made the right media choice without feedback? If something is not working after giving it at least 3 impressions, change the message and/or the placement. After over 35 years of being in the advertising business, I can tell you it's not magic. It takes work. Research and Testing are your best friends. Just like any good friend, they will keep you from making the same mistakes over and over.

Sales begin before your salesman calls.