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Marketing Executives Council Minutes August 23_ 2009 Marriott .doc


									                 Marketing Executives Council Minutes
                           August 23, 2009
                    Marriott Detroit Metro Airport

The following Marketing Executives Council (MEC) members and guests were in

      Brian Altenberger        Delphi
      Chris Brandt             AC Delco
      Jack Cameron             AASA
      Brad Duncan              OptiCat
      Larry Fidance            Denso
      Steve Handschuh          AASA
      Barry Harris             Timken
      Scott Howatt             Affinia
      Don James                Continental
      Grant Kitching           Walker
      Dil Kulathum             CARDONE
      Tony Lupo                Arent Fox
      Don McEntee              SKF
      Chris McKensie           Penray
      David Miller             Gates
      Stas Mintowt-Czyz        OptiCat
      Frank Murkowski          Tenneco
      Jonathan Ressler         Catevo
      David Shaar              SPX
      Mark Sprague             NSK
      Laura Sullivan           Akebono
      Brian Tarnacki           Federal Mogul
      Carrie Wright            Delphi

There were opening remarks by chairman, Brian Altenberger and he
recognized new members in attendance for the first time, Larry Fidance,
Denso and Don McEntee, SKF as well as recognizing guest / prospect David
Schaar, SPX followed by a review of the AASA antitrust guidelines by Tony
Lupo of Arent Fox.

Brian Tarnacki provided an overview of activities and accomplishments of the
Supplier Image Task Force, comprised of Brian Altenberger, Kevin
Burton, Jack Cameron, and Barry Harris. The task force met six times via
teleconference since the last MEC meeting in May. A copy of the finalized
Creative Brief was distributed which included the changes discussed in the
previous meeting. Through a survey of MEC members, the ID chosen was AASA
Full Service Suppliers which was believed to be all inclusive and a better
descriptor of our membership for publication use. An additional change
incorporated in the brief was the use of the term “essential services” in place of
“value-added services.” This new term conveys the message that these services
are critical, necessary and irreplaceable.

Next Brian reviewed the plans to produce a public service announcement (PSA)
which will air during NASCAR racing events on ESPN as well as other NASCAR
television on SPEED TV in October and November on donated air space. The
production of the PSA is being funded through a $25,000 grant by the University
of the Aftermarket Foundation. The :30 video will be made available for use by
AASA members as well. The key message is “Know Your Parts” which will be
developed into other collateral materials yet to be determined. This message
rings true throughout the distribution channel all the way down to the consumer.

The Special Report – Buying Influences of Repair Professionals which is a
comprehensive report of the focus group findings of our research completed
earlier this year was distributed. This 21-page report is planned to launch August
17 with an external news release, AASA news article and posting to the public web
site. This will be the first in a series of reports on supplier awareness and what is
now best described as an Industry Image campaign. Advanced copies were
distributed to key members of the press.

A second Special Report – Independent Aftermarket Image, also completed by
the task force and planned to launch in September was distributed to MEC
members. The timing of this report is purposefully delayed to allow the impact of
the first report to take hold. This report focuses on the problems associated with
low-cost, low-quality products entering the channel through various means and
the potential impact they have throughout the industry. This will be the
cornerstone of our campaign message.

Additional Special Reports are planned for the series including updates and re-
issues of two previous reports on the risks of direct importing and distributor

The group then discussed potential next steps and the following ideas brought up
will be reviewed by the task force:
 Common message and talking points of the campaign for distribution and use
    by all AASA members.
 An AAPEX promotion – print ad, booth sign, buttons, etc. around the
    message “Know Your Parts.”
 Creation of a logo around the message “Know Your Parts” for use by all AASA
 A micro-site and link on the Industry Image message and “Know Your Parts.”
 Potential social media page on Twitter for “Know Your Parts.”
 Video clip of the PSA for use by all AASA members including the upcoming

Any additional ideas should be forwarded to any member of the task force.

Brad Duncan, CEO and Stas Mintowt-Czyz, VP Sales & Marketing of OptiCat
provided an in-depth look at this new supplier-centric e-commerce model. The
slide deck for the OptiCat presentation is posted to the MEC member-only web
site. Some highlights of the presentation include the OptiCat Mission, which is:
 Consolidate, validate, accelerate global data on a do-it-once (DIO) platform
 Enhance distributor-centric EPC model – more, better, faster data
 Facilitate e-commerce on an open platform technology
 Lower data delivery / receiving costs
 Sell more parts

The presentation provides a detailed look at the current distributor-centric as
well as the supplier-centric models. OptiCat does not look to replace 3rd party or
even customer-owned e-catalogs. Rather, it is a central repository of supplier
application data that can be dispensed in any user format. For the data supplier
(manufacturers) it allows data to be transmitted in any format without the need
of mapping to multiple formats thus significantly reducing costs. It also provides
that the data supplier retains ownership of intellectual property rights. For the
data receiver (3rd party and customers) it provides a single source or DIO for all
manufacturer application data rather than dealing with hundreds of data
providers. All of which improves speed to market and sells more parts.

Discussion regarding the OptiCat model ensued including the potential to have
AASA on its board to represent the interest of its members. It was pointed out by
several MEC members that the suppliers will do and support what the customer
wants or demands. OptiCat is focusing attention on promoting the benefits of the
DIO model to major customers. For more information, contact:
Brad Duncan, CEO –
Stas Mintowt-Czyz –
(801) 438-1020

Jonathan Ressler, social media expert presented his look at Demystifying
Social Media. Jonathan is the former owner of The Ressler Group and Big Fat
Promotions in New York where his clients included Nestle, Mazda, Nintendo,
NFL, NBA, MTV, Comedy Central and Anheuser-Busch. His specialty is helping
clients capitalize on the power of guerilla, stealth and entertainment marketing as
well as social media. Jonathan will be a key note speaker at this year’s eForum
presenting the exact materials but the MEC got to see it first.

Ressler provided an entertaining and insightful look at the phenomenon that is
social marketing. He covered in detail the most popular sites including Twitter,
Facebook, LinkedIn, Wikipedia and the number two most used search engine,
YouTube. His presentation included success stories and real world examples of
how to put social media to work… for free!

Jonathan Ressler’s presentation is posted to the MEC member-only web site but
if you didn’t see it in person, you missed a lot. His contact info:
Twitter: BigFatJR
LinkedIn: Jonathan Ressler

Facebook: Jonathan Ressler
Skype: BigFatJR

Tony Lupo of Arent Fox followed Jonathan Ressler’s presentation with his own
on Social Media – Legally Speaking. Tony scaled back his comments from a
presentation previously given to the Brand Protection Council as not to be
redundant with Jonathan’s, however his entire presentation is now posted to the
MEC member-only web site. Additionally, we will be publishing this presentation
into a Special Report.

In addition to giving specific examples of ways to protect yourself legally on
popular sites such as Twitter, Facebook and Wikipedia, his presentation covered
User Generated Content (UGC) guidelines, the Digital Millennium Copyright Act
(DMCA), and the Communications Decency Act (CDA).

The next agenda topic was Market Pulse, the new benchmarking survey by
AASA with input from the MEC. The inaugural issue of Market Pulse included
key performance metrics of suppliers not currently tracked or available elsewhere
including returns (warranty, obsolescence, other), published price changes, direct
selling expenses, order fill rates, and order turnaround, and a few more. The
aggregate results were distributed to those present. Detailed results broken down
by company size and market segment are furnished only to those participating in
the survey per legal guidelines of confidentiality. The group discussed the
current questions and reviewed a comprehensive list of suggested additional
questions for future surveys. Many of the suggested questions require one-time
answers as the info does not change quarter to quarter. Those questions will
probably be included in a one-time survey rather than added to Market Pulse.
The metrics suggestion will be added based on priority as there is concern over
making the survey too long and therefore discouraging participation.

Examples of one-time questions which will not be added to Market Pulse but may
be asked in a separate one-time survey:
 Do you have an established Jobber Net price?
 Do you have printed price sheets?
 Number of SKU’s inventoried?
 Time to market on new applications / part numbers?
 Sales force type – factory or reps?
 On-line application look-up?
 Trade show participation – distributor, national, international?
 Use of VIO (Polk, Experian, etc.) data?
 Etc., etc. etc.

Examples of metrics question to be added to Market Pulse include:
 Average order size – lines and dollars
 Percentage of orders/invoices where shortages claimed
 Drop shipments – manufacturing facility to distributor
 Drop shipments – supplier facility to distributor’s customer
 Number of new part numbers introduced
 Etc., etc., etc.
Other suggested improvements to Market Pulse included:

   Print option of blank survey to work on off-line
   Clarify or add further definitions on survey questions
   Better define time frame requested
   Provision for suppliers in more than one market segment
   Send out a beta test to select members prior to release to all

All of these suggestions will be evaluated and implemented if possible.

Under Council Business, Chairman Brian Altenberger led a discussion on self-
assessment of how effective the MEC is operating and what changes, if any
should be considered. First was a review of the current Mission Statement and
Purpose. Most agreed it was still as appropriate today as when the council was
formed, it was suggested that market research be added. This discussion will be
picked up in future meetings as the chairmanship changes. Next was a discussion
of dues. It was suggested as a means of recruitment and retention, that the
current dues structure of $2000 which includes meeting expense, overhead and
special projects, be reduced to $1000 to cover meeting expense and overhead
only. However, after discussion it was voted to maintain current dues of $2000
so that a war chest of funds could be accumulated for future projects. Meeting
frequency was agreed to stay at 4 times a year with event consolidation (Vision,
AAPEX, etc.) and at least one webinar style meeting in the mix. Finally, a
recommendation to expand leadership from a Chairman and Vice Chairman with
the addition of Immediate Past Chairman (non-voting) and two board members
at large along with the AASA staff leader should be implemented. This would
help facilitate meeting and agenda planning as well as annual elections. Further,
it was proposed that vacant or upcoming seats be recommended as a slate of
officers by the current leadership and approved by the general membership. This
new leadership structure and approval process was voted on and approved.
NOTE: MEC members interested in serving as either Vice Chairman
or on the Board should contact Jack via e-mail .

No other council business was discussed; however potential future agenda topic
ideas are welcomed and encouraged. Please send your ideas and suggestions to
Brian Altenberger, Barry Harris or Jack Cameron.

The next MEC meeting is:

November 5 – Las Vegas (last day of AAPEX) from 9:00 until 12:00 in
                    the AASA Member Center

                           Please Save this Date!


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