The Promotion Marketing Association and PROMO magazine stated that
promotional spending outweighed advertising spending in 2002, with $233.7
billion of consumer promotion compared to $211.7 billion for consumer
advertising.
I have observed for many years that the promotional spending part of the
media mix is increasing, as is public relations spending. Of course, we
have to consider the source of the data, but it is illustrative of an
important point. This trend has been a longer-term trend than the Internet,
and is a reminder that media mix decisions are very dynamic.
It’s always important to define what exact categories are included
in promotion. Interestingly, many of them involve some kind of print support:
- Premium incentives
- Promotional products
- P-O-P displays
- Sponsorships
- Coupons
- Licensing
- Specialty printing
- Fulfillment
- Games, contests, sweeps
- Interactive/Internet
- Research
- Sampling
- In-store services
- Event marketing (just added)
Why the switch to promotions? Markets are more fragmented than ever,
a sign that good segmentation strategies and flexibility are necessary
to achieve communications goals. It also means that more is known about
consumers within individual segments, and promotions can be better targeted
-- and more effective -- than advertising. The nebulous concept of data
base marketing, better characterized as precision-selected mailing and
contact lists, is critical to making promotions work.
Implicit in this shift is accountability. There is a sense among media
buyers and their clients that the effectiveness of advertising is uncertain,
but that promotions are more measurable, and are therefore better tools
in reaching communications goals.
What? Goals? Yes. But most people who sell printing don’t have
a clue about what communications or goals are. By the time that they see
a job, all they have are job specs, with no sense of the broader purpose
of what they were being asked to print.
And this leads me to a favorite topic of mine, whether or not printers
are really part of the communications business. For most printers, the
answer is not only “no,” but also that they cannot be.
I believe that it can be misguided to suggest that printers can be part
of that communications business, for some pretty basic reasons. This is
not as simple as it might seem. This goes to the heart of how a business
perceives itself, and should not be taken lightly.
To communicate, you need
- a sender
- a message
- a conduit
- a receiver
- a means of feedback
Conventional printers are not in the communications business because:
- they have no control of the message -- the client (the sender) does
- they have no control of the recipient -- the client does
- they have no control of the conduit -- the post office, UPS, the phone
companies, and others do.
- printers don’t measure effectiveness because they can’t
affect effectiveness
We do know that printers have a relationship with business communications,
but what is it? What role can printers play in communications? They can
facilitate the communications process, and lift the burden of logistics
from the client. I think that is something quite different that the usual
“define yourself as being in the communications business.”
Printers can have a stranglehold on communications logistics like few
other companies. I believe that providing the physical logistics of communications
is where the real value is.
How do printers get into the communications business if they really want
to? The concept is simple; the implementation is difficult. The concept
is that to be in the communications process you must own a piece of the
communications process.
- Become a sender: Some printers have redefined their businesses to
become publishers of printed and electronic communications.
- Develop messages: Other printers have added design and promotion
creation services. This is not in the sense of having a designer on
board to do simple tasks, but rather, a creative professional who helps
clients articulate their message in words and images. This is the job
of ad agencies and leading graphic designers.
- Offer a conduit: Yet other printers have created “publications,”
such as newspaper inserts, like those offered by Quad and Valassis.
- Own the receivers: Still other printers have created and maintained
proprietary data bases which they own and sell to interested parties.
It might be maintaining lists of households in a geographic area, or
business owners by geography or industry.
- Become a means of feedback: There are printers who have actively
pursued fulfillment operations, and who measure, track and report on
campaign results, or fill orders from sales and marketing campaigns.
But for most printers, taking ownership of content is outside of their
skills, so being a communications facilitator is a better strategy for
them; that is, offering mailing, e-marketing, shipping logistics and other
services that clients prefer to outsource.
So next time you hear the trite phrase “printers are in the communications
business,” think long and hard about what it really means, and don’t
treat the subject lightly.
On the Web:
See the Promotion Marketing Association Press Release
Also view the Powerpoint presentation
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The Overrated Power of First Impressions
A funny thing happened to me in 1985. An executive recruiter (yeah, in
private we still say "headhunter") told me I had no future in
the industry, and was quite sincere about it. I've always remembered that,
and I always chuckle when it comes to mind. I've known lots of underestimated
people in my life, and they've all been very successful. So many purported
high-rollers have the attention spans of gnats and lack a depth of commitment
to be successful for any extended period of time.
The potential for commitment to a cause doesn't always show. Over many
years I've come to realize that the often popularized idea of the first
five minutes being the most important part of a business relationship
is very overrated. Like a marketing message, business positioning of one's
own self is developed over time. The refining of a consistent and clear
message is essential, and must be combined with constant repetition. First
five minutes? You can't develop a reservoir of goodwill in five minutes.
You can't develop a reputation in five minutes. While some people can
turn you off in seconds, discovering what makes people tick and what skills
they really have takes time. I’m sure you've heard the phrase "your
reputation precedes you." That's what the real goal is: to never
worry about the first five minutes because you've worked for years before
that first meeting to establish a solid reputation.
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More Cool PC Tools from Dr. Joe
PowerPoint Templates: There is nothing worse than hitting the road and
doing speaking gigs or panels, and finding out all of the speakers have
the same PowerPoint templates. It’s like showing up at a party where
everyone is dressed the same. I've bought some sets of templates over
the years and have been quite pleased with them, but most of the providers
will let you try some out for free. Try these sites:
http://www.websiteestates.com/ppoint.html
http://www.graphicsland.com/powerpoint-templates.htm
http://www.brainybetty.com/
http://presentations.animfactory.com
For some really cool but expensive PowerPoint tools, try Crystal
Graphics, who publishes all kinds of MS Office tools under the name
PowerPlugs. They even have a terrific database of quotations that can
be used to easily locate and insert relevant quotes from both famous and
obscure people into Word or PowerPoint files. Sometimes they even have
free PowerPoint templates. Presentation
Pro at is also a good source.
If you don’t mind the idea of not using PowerPoint and and are
comfortable working without the safety net of using someone else’s
computer for backup, don’t forget Corel Presentations (part of the
WordPerfect Office Suite, version 11 just released) and the pioneering
but now mundane Lotus Freelance (part of Lotus SmartSuite from IBM, and
some real concerns about the product continuing in the future). Corel
and Microsoft often make alternative templates available on their web
sites for free.
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What do you think? Please send feedback to Dr. Joe by emailing him at drjoe@whattheythink.com.
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