Results Driven Marketing in a Results Driven Marketing in a Down Economy…Down Economy…

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EventU.S. Postal Service

Today’s ConversationToday’s Conversation

The Landscape Recession Spending in Action: A Look

Back in History Survival Guidelines Direct Mail:

The Marketing Workhorse Where to Turn

Today’s Economic LandscapeToday’s Economic Landscape

GDP growth turns negative

Job losses accelerate

Housing market stalls

Families feel the pressure

Wages still up due to low inflation

Source: Economic Snapshot, Center for American Progress, April 2009

Consumer AttitudesConsumer Attitudes Economic downturns instill anxiety

Energy and food prices are on the rise Frugality is standard operating procedure Pragmatism and escapism are not mutually

exclusive

Source: Tuning Into The Recession Mind-Set, Forbes, February 2008

Consumers are saving more, Consumers are saving more, spending less!spending less!

““Marketers from various industries Marketers from various industries are feeling the pinch of are feeling the pinch of

belt-tightening with their budgets.” belt-tightening with their budgets.”

Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008

The Marketing SnapshotThe Marketing Snapshot

69%69% are reducing advertising budgets 63%63% are reducing production budgets 63%63% are being challenged to reduce expenses

and cut costs 61%61% eliminating or delaying

new projects 63%63% restricting travel

Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008

““In fact,In fact, SPENDING MORESPENDING MORE during tough times during tough times when competitors may be scaling back is a when competitors may be scaling back is a good way togood way to STRATEGICALLY BOOST MARKET STRATEGICALLY BOOST MARKET

SHARESHARE……

Source: Bob Liodice, President and CEO of the ANA

A Look Back in HistoryA Look Back in History

The Great DepressionThe Great Depression Many companies benefited from aggressive

marketing Consumers looked for better deals When spending picked up, loyalty was

established

Source: How Brands Thrived During the Great Depression, Strategic Marketing Concepts, February 2009

Depression Spending in ActionDepression Spending in Action

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

Depression Spending in ActionDepression Spending in Action

Depression Spending in ActionDepression Spending in Action

Depression Spending in ActionDepression Spending in Action

Survival Guidelines for Survival Guidelines for BusinessesBusinesses

Examine Your CostsExamine Your Costs

Make Strategic CutsMake Strategic Cuts

Stay Close to Your CustomerStay Close to Your Customer

Explore New OpportunitiesExplore New Opportunities

Think Like a MarketerThink Like a Marketer

Monitor the CompetitionMonitor the Competition

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

budget

Avoid GimmicksAvoid Gimmicks

Your customers need messages that centeron the benefits andadvantages of yourproduct or service.

Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Stress Benefits and ROIStress Benefits and ROI

Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

What’s In It For Me

Focus on MetricsFocus on Metrics

Test Know the behavior of your segments Adjust Watch spending

Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Re-examine the Marketing MixRe-examine the Marketing Mix

Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Use Direct-Response TechniquesUse Direct-Response TechniquesHard-hitting copy and a strong call to action

Source: Facts On The Value Of Marketing During An Economic Downturn/Recession

Direct MailDirect MailThe Marketing WorkhorseThe Marketing Workhorse

PERSONALPERSONAL Use the customer’s name Provide relevant information 55% of customers “look

forward” to receiving their mail

TARGETEDTARGETED Focuses on a specific group Strong ROI

FLEXIBLEFLEXIBLE Choose from a variety of formats Include special offers, samples or

coupons

TANGIBLE/ CREATIVETANGIBLE/ CREATIVE Places your message in their hands Makes an unforgettable impression Your piece can be passed along

Direct MailDirect MailThe Marketing Workhorse The Marketing Workhorse

MEASURABLEMEASURABLE Easy to track the results Allows you to adjust mailings based on success Calculate price per lead

GREENGREEN Post-consumer content Consider paper weight Alternative materials Chemical-free processes Experiment with formats

Results Driven MarketingResults Driven Marketing

The ReasonThe Reason

ComponentsComponents

ComponentsComponents

ComponentsComponents

Case StudiesCase Studies

The ChallengesThe Challenges Generate reservations for opening of 135

luxury guest rooms and offer discount

Cut spending on mass advertising media

Attempt to gain market share when sales

are down

Advertise to promote iconic brands

otherwise risk losing customers

David RawleChairman, Rawle Murphy Advertising,

Marketing, and Public Relations Agency

Wild DunesWild Dunes

Challenge:Challenge: Launching a luxury product during a recession

Solution:Solution: Combine product and incentive offer using a multi-channel marketing campaign

AT&TAT&T

Challenge:Challenge: Increase cross-selling among customers despite high turnover

Solution: Solution: Integrated plan led with Direct Mail kits

John KlemetsMarketing Manager,

Dell Consumer Division

DellDell

Challenge:Challenge: Grow market share despite shrinking budgets and current economy

Solution:Solution: Integrated plan with multiple Direct Mail executions

Jeff MeyerSr. VP, Marketing & Sales - Feld

Entertainment

FELD EntertainmentFELD Entertainment

Challenge:Challenge: Continue to advertise to promote iconic brands otherwise risk losing customers

Solution:Solution:

Direct Mail lead the way for decision-making of destinations for events and inventory

The ResultsThe Results In total, 3,000% ROI3,000% ROI from the campaign.

Length of stay increased by 10%10% fromprior years, online revenues increased by 40%,40%, call-in revenues increased by 20%20%

Mailing more next year based on the positive ROIpositive ROI generated from this year’s mailing campaign

Early access to a sale’s event generated a 200% ROI200% ROI

Positive RIOPositive RIO is the indicator for each given market around the country

SummarySummary

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

ResourcesResourcesPeople

Postal Customer Councils USPS Sales Force USPS BSN

Places Brains on Fire Brand Channel Duct Tape Marketing

Things Deliver and www.delivermagazine.com

Any Questions??Any Questions??

Thank you for your time!Thank you for your time!