We're Lending_ Commercial + SBA by fanzhongqing


									      NEWS AND

                                                                                                             Volume 3, number 2

         Winning With RPM

                he biggest mistake in marketing is doing nothing. To fuel sustain-
                able business growth and to avoid large swings in demand (feast
                or famine), businesses need to follow through with the strategies
         and tactics identified as most relevant to their target audience(s).
            Effective marketing initiatives almost universally are built on insights
         gleaned from studying the preferences of current clients and target
         customers, as well as the actions of competitors. Shots in the dark rarely
         are successful.
            Happily, the Internet has made some market research significantly
         more affordable — especially since many 360-degree reporting
         initiatives provide immediate and client-specific feedback in the form of
         qualified sales leads. Companies are enjoying 4 to more than 20 percent
         response rates with well designed 360-degree reporting initiatives, so in
         addition to harvesting significant client-specific data for the customer
         relationship management (CRM) programs, they are increasingly pre-qualifying
         clients for repeat sales and closing more transactions. In many instances,                  2
         premium-based market research is allowing sales executives to                               President's Message
                                                                               continued on page 4

                                       Beyond Mystique                                               Blog On!

                                              ire up a Harley-Davidson motorcycle and
                                              give the throttle some gas. Everyone on the
                                              block will know you are passionate about               Winning With RPM
                                       your transportation choice. Few of the drivers and            (continued)
                                       pedestrians you encounter during your ride will
                                       ever consider your destination. They will hear the            6
                                       throaty rumble. They will see the polished chrome             Beyond Mystique
                                       and notice you are dressed in black. Then, many               (continued)
                                       will envy the freedom you exhibit while riding,
                                       without ever considering your destination.
            Mystique is a sales executive’s dream, regardless of industry. Think green           We're Lending!
         Toyota Prius. Consider Apple Mac, iPod, iTunes or iPhone. Embrace the Wii.             Commercial + SBA
         Wear designer clothing. Swing a golf club endorsed by Tiger Woods. Listen
         to the cute gecko and get an insurance quote from GEICO. Eat at in-Vogue res-                   Details Inside
         taurants. Time and again people are willing pursue products and services they
         perceive to be hot, or the best.                                    continued on page 6
                                               President's Message

                                                      he first quarter of 2008 has just concluded,
                                                      and what a roller coaster ride it has been!
                                                      Concerns relative to the economy and the
                                               financial services industry in light of the subprime
                                               mortgage meltdown didn’t get any better with word
                                               of Bear Stearns liquidity problems and the subse-
                                               quent bailout by the Federal Government.
                  The Federal Reserve has taken proactive and preemptive actions to fend off
               the liquidity issue in the marketplace. We are likely in a recession and a period
               of credit tightening. While community banks, including F&M Trust, have avoid-
               ed subprime residential mortgage loans and investments, it appears that most of
               the industry is dealing with this stigma.
                   Despite many of the national trends, our experience indicates that that local
               economy remains solid. We are optimistic about the prospects for 2008. The
               strong loan growth we experienced in 2007 has continued through the first quar-
               ter. Commercial and small business borrowings continue to rise, including sev-
               eral in our new SBA guaranty program loans.
                  We continue to focus on making it convenient for consumers, small business,
               and commercial customers to bank with us. Construction on our 25th commu-
               nity office, this one on norland Avenue in Chambersburg, is underway with an
               anticipated completion time of late July. We recently introduced online check
               images and online deposit applications. We also expect to introduce remote
               deposit capture to business customers in the third quarter.
                  We thank you for being part of our success. We appreciate your business and
               look forward to the opportunity for us to grow together. If we can be of assis-
               tance to you or your company, give us a call or just stop by for a visit. We’re
               ready to deliver Financial Solutions . . . from people you know.

                  William E. Snell, Jr.
                  President and Chief Executive Officer

               A quarterly publication for the valued customers and friends of F&M Trust
              F&M Trust Commercial Services and Small Business Banking
              Michael E. Kugler, Senior Vice President, Commercial Services Market Manager
              Dianne L. Cornman, CTP, Vice President, Cash Management Specialist
              Ronald R. Froeschle, QPA, QKA, Vice President, Employee Benefits Officer
              Debra K. Michael, Vice President
              Brian E. Weikert, Vice President
              Kenneth W. Brookens, Assistant Vice President
              Donald L. Trego, Assistant Vice President, Small Business Relationship Manager
              Philip A. Pantano, Commercial Services Relationship Manager
              David S. Campbell, Small Business Relationship Manager
              Lynn Waite, Small Business Relationship Manager

2   News from F&M Trust • Volume 3, Number 2
                    Blog On!

                            oday, 112.8 million blogs (Web logs) and over 250 mil-
                            lion pieces of tagged social media are part of the Live
                            Web experience of which almost 40 percent of world-
                    wide Internet users are aware. According to Technorati — the
                    tracking authority for blogs and social media Web sites includ-
                    ing FaceBook, MySpace, and LinkedIn — the Live Web is
                    incredibly active. Bloggers update existing sites with more than
                    1.6 million posts per day. That’s 18 blog updates per second,
                    and there are more than 175,000 new blogs added every day.
                       While most of the blogging and tagged social media activity is personal, the
                    past few years have seen a mushroom of blog and social media introductions by
                    company’s interested in bolstering on-line presence to drive additional traffic to
                    their Web sites. no surprise, since the cost of these on-line promotions are incred-
                    ibly low, particularly if a company can free up one or more staff experts to provide
                    on-line commentary in a subject area closely aligned with business objectives.
                        Before your business starts in own blog, ask a few key executives to visit some
                    of the world’s most popular blogs, particularly those in which commentary likely
                    will have great relevance to your industry. Many of these Web sites enjoy hun-
                    dreds of thousands of unique visitors every month, each of whom is interested
                    in the subject on which the blog is focused. So, having your executives posting
                    thoughtful insights on these blogs (each noting your Web site address), means
                    more of your target audience will visit your Web site more often.
                      Finding top sites is as easy as visiting Bloglines.com where the world’s 1,000
                   most popular blogs are catalogued in groups of 100. After seeing the benefit of
                   frequent posts on the most relevant high-traffic blogs serving your industry, you
                   also may want to become a paid sponsor of a top blog. More visibility should
8099FMT            equal more qualified traffic to your 2/19/08 9:25 AM Page 1
          BusFocThirdpage_Measure01final:Layout 1 Web site. q

      For good measure.
      Could you be managing growth better? As one of the leading
      commercial resources in the region, F&M Trust knows just
      what you need to position your business for maximum growth
      and productivity – better financial options:
      �   Commercial Real Estate Loan
      �   Business Line of Credit
      �   Term Loan
      �   Business Equipment Leasing
      �   Letter of Credit
      �   F&M Trust Productivity MasterCard® For Business

      Which of these options will help you achieve a greater measure of success?
      Your F&M Trust business lending expert has the answer.                                       fmtrustonline.com

                                                                                                   Equal Opportunity Lender • Member FDIC

                                                                       Volume 3, Number 2 • News from F&M Trust                             3
     Winning With RPM . . . continued from page 1
               close enough business to more than cover the cost of that relationship-building
               research. What a concept!
                  Reinforced by orchestrating a series of conversations in customer focus
               groups of five to 10 people, companies can quickly gain in-depth feedback from
               about 100 representative clients on what kinds of products they want, on how
               they want them delivered, on what could improve them and on how much they
               are willing to pay. Then, these businesses can focus resources where returns are
               likely to be the greatest.
                  A short-hand way to remember the steps just outlined is to think RPM.
               Cyclists keep track of RPM counts when racing, because when RPM is main-
               tained at a high level, it translates into the speed necessary to gradually break
                                                 away from competitors. Similarly, companies
                                                 interested in breaking away from competitors
                                                 should be vigilant about RPM. Recognize what
                                                 needs to be done. Prioritize activity. Mobilize
                                                 resources. That’s it!

                                              The US economy is slowing. Some companies
                                              may react by concentrating on work already in
                                              house, focusing energy on fulfilling and com-
                                              pleting projects on time to maintain cash flow.
                                              Indeed they could be avoiding short-term market-
                                              ing expense, but at what long-term cost? Cutting
                                              direct mail and other marketing expenses could
                                              eliminate the very activities able to bring in new
                                              customers to turn business around. Keep client
                                              communications going year-round. Market con-
                                              ditions may or may not improve quickly to buoy
                                              business volume to levels previously enjoyed.

               Since niche market opportunities are still present in a tightening economy, and
               funding is available from F&M Trust, it is prudent for companies to focus on
               narrow target audiences. Learn whatever you can about potential customers in
               the niche you’ve identified. Determine what would make them want to buy the
               new product or service you want to provide. Calculate how, what and why they
               buy from competitors in this niche. Discover what you could offer to make your
               offerings the most attractive, and make sure there aren’t too many competitors
               serving the market segment to make entry less than profitable for your company.
                  Then, identify the best way to reach the greatest percentage of the target
               audience you want to reach with your messaging. When creating advertising,
               direct mail, telemarketing, or E-marketing campaigns to reach the audience
               make sure to factor in ways to measure results. Have you considered coded
               coupons, in-store response cards, or special incentives to reward customer
               loyalty? Are you firing before you take aim? Establish a specific promotion
               budget for the niche market, being sure to plan marketing activity concretely for
               a minimum of 6 to 12 months. Leverage multiple advertising insertions and test

4   News from F&M Trust • Volume 3, Number 2
more than one delivery channel. Eliminate rush charges and prevent unwise
purchasing decisions.

Get the help you need to promote the niche business that could diversify and
grow business revenue streams. Don’t fix programs that aren’t broken. But do
engage professionals for the public relations campaigns and advertising creative
to make sure you are getting out the exact message you need to drive business.
With the help of these professionals, your messages should showcase product
benefits often enough to make the “What’s In It For Me?” resonate with your
target audience.
   Equally important, engaging marketing and communications professionals
could be the difference in getting sufficient traction in a new market requiring
new strategies and tactics. new markets often require new marketing messages,
refined packaging, different value propositions and new product names. Be pre-
pared to test marketing pitches before full-scale rollouts so messages are relevant
and proven for their ability to deliver traffic.
    Your experts should help you build budgets and concentrate precious resourc-
es on what works. After all, it is vital
for your company to avoid the message
dilution that comes from trying a little
bit of everything. Your “hired guns”
should help you zero in on only the
most promising promotion opportuni-
ties. Some may be “outside the box”
or guerilla marketing efforts that could
produce surprisingly positive returns.
But, the majority should be tried-and-
true promotion solutions representing
clear pathways to the target audience,
using proven techniques. For example,
decades of advertising research shows
that bigger advertisements are better,
provided they run frequently and reach
the target audience when many are ready
to make buy decisions. Make your mes-
sages large. Make them frequent. Make
them relevant to your target audience.
It’s that simple.
   Seasoned marketers also should help you establish realistic sales expectations
from each campaign; provide measurable results so you can calculate campaign-
specific returns on investment; and sharpen messaging so your appeals increas-
ingly sensitize target customers to the perceptions of your business, your prod-
ucts and your services that you want to engender.
    One need only look to the constant refining of messaging by both Democratic
and Republican candidates working to become the next President of the United
States to understand the importance of clear communication to address issues
voter by voter. For business, the gold standard for communication is client-spe-
cific message relevance. q

                                                  Volume 3, Number 2 • News from F&M Trust   5
    Mystique . . . continued from page 1

                  Clever marketing is part of what gives a product or company mystique as a
               competitive advantage. But even the best marketing effort is trumped by improved
               employee-customer interaction, which can increase or flatten demand as prospective
               buyers interact with your sales and fulfillment teams. Emotions play a key role in
               purchasing decisions, so every employee touching clients must have confidence in,
               pride and passion about your company’s offerings.
                  Many businesses assess performance holistically, using random customer sur-
               veys and annual employee satisfaction surveys. They ignore what’s happening
               to clients touch-point by touch-point, and neglect to measure employee-customer
               encounters by location or at work group levels. For example, just think what
               would happen to company mystique if only a fraction of call center or technical
               support employees consistently facilitated positive client interactions.
                  Further diluting performance assessments, some companies keep key data in
               separate departmental silos. Financial data resides in finance. Customer data
               stays in marketing. Employee satisfaction data stays in human resources. no
               senior executive or leadership team is asked to get beyond the silo mentality, ana-
               lyzing data harvested collectively to champion steps to improve client touch points
               throughout the organization.
                   Getting granular to enhance client relations means accounting for a variety
               of factors, including the quality of local managers who undoubtedly influence
               employee engagement + employee satisfaction + employee retention = employee
               performance. Take a look at how employee incentives, recognizing that they
               are tricky.. You could motivate one employee with an incentive that discourages
               another. A sales executive might be encouraged by cash bonus potential. But, since
               cash has less story-telling value than a travel or notable merchandise award, leader-
               ship teams need to carefully evaluate incentive plans to maximize value. Flexible
               options include gift cards or on-line currency that can be redeemed with a variety
               of retailers. Since additional time off also could spark high perceptions of value
               among hardworking employees, flextime, home-based work, paid overtime, three
               and four-day weekends, could prove valuable at mid-sized to large companies. At
               small firms, however, this type of time off could flatten growth because there likely
               is not enough depth on the bench to cover key staff absences.
               Before your company rolls out an incentive program:
               1. Identify clear goals that can be better accomplished with a specific incentives
               2. Zero in on a specific product or transaction type so success is easier to track
               3. Feature both individual and group incentives to advance teamwork as well as
                  personal achievement excellence simultaneously
               4. Make it understandable so employees can help with program sell in
               5. Consider only programs that are easy to administer or to outsource
                  Since studies consistently show that it’s significantly easier for businesses to sell
               additional goods and services to current clients than to attract new clients, custom-
               er-oriented companies often introduce frequent-buyer incentive programs. Another
               proven new-business approach is launching a client-referral initiative with frequent
               promotions designed to transform customers into vocal fans. Some of these pro-
               grams feature chance-to-win great prizes. Others showcase defined benefits where
               customers making referrals receive immediate rewards. q
6   News from F&M Trust • Volume 3, Number 2
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                                                  Equal Opportunity Lender • Member FDIC

24 convenient locations in:
Fulton and
Huntington Counties
888-264-6116 (toll free)
Commercial and Business Services
Mike Kugler     261-3518
Phil Pantano    261-3669
Ken Brookens    261-3523
Debbie Michael  597-2384
Lynn Waite      597-2384
Dianne Cornman 261-3536
Brian Weikert   243-1283
Paul Johnston   485-3144
Don Trego       485-6944
Dave Campbell   261-3561

                                   6448FMT Masthead FINAL   12/14/06   4:21 PM   Page 1

                                           NEWS AND
                                         FOR TODAY’S
                                     BUSINESS OWNER

                                             RPM Wins. The economy is slowing. Yet niche marketing opportunities
                                             exist for virtually every company, and F&M Trust offers the competitive
                                             funding Pennsylvania businesses need to keep moving at the speed of
                                             business. Recognize what needs to be done. Prioritize activity. Mobilize
                                             resources to speed past competitors.
                                             Beyond Mystique. It's hard work to nurture client loyalty, let alone the
                                             mystique that supercharges sales for some brands.
                                             Take a hard look at employee-client interaction at
                                             every touch point so your company can keep
                                             improving the buyer experience — at the time of
                                             the sale and when customer service is needed.
Business Focus is a
Net Worth Journal Publication
                                             Blog On! Consider sponsoring some of the 112.8
Jim Brown, Editor-In-Chief                   million blogs and over 250 million pieces of tagged
JBrown@netWorthJournal.com                   social media being tracked by Technorati. The best
888-nET-WRTH                                 could drive large numbers of target customers to your
www.netWorthJournal.com                      company Web site.

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