PM Associates
Power Marketing
Identify Research Contact Propose
Executive Summary
Is the use of mass media detrimental to your business? Advertising/Marketing has become frantic, clever, expensive, ubiquitous and increasingly invisible. The word you hear most often now in ad circles is "clutter," followed by "recall." The two are inversely proportional. Today, advertisers spend millions of dollars to reach their target market besieged by messages that often leave little or no impression. Businesses are scrambling to find ways to stand out from the crowd. To make matters worse, recent studies suggest that if you are not one of the top contenders in your service or product category, all those advertising dollars you spend are likely to drive customers into the arms of your biggest competitors, the market leaders. The big picture approach to marketing has gone the way of rabbit ears on television sets. There is no more "mass" in mass media anymore. Why is mass marketing a fatality in today's competitive war for the consumer's dollar? Because the battlefield has changed--people are tired of being interrupted through ads, commercials, banner ads, spare, and so forth. If you're still using conventional marketing weapons, or if your arsenal is the equivalent of rusted cannon balls sitting in front of the town hall, it could mean the death of your brand. Customization and attention is the new currency in this marketing battlefield, and although it's tempting to fight your war by using the big guns of mass-media marketing, the key to success is to forget big thinking. Even the "big guys" are beginning to agree that you can't buy people's attention. Major marketers like Pepsi, Proctor and Gamble and Wal-Mart are looking at new ways to market their brands through non-traditional media vehicles. "Mass media no longer works and no single ad tells the whole story," declared Larry Light, chief marketing officer of McDonald's Corp., at the AdWatch conference this year. He went on to say that effective marketing should use stories that are company/sector relevant rather than employing one massmessage to reach everyone. Power Marketing tells the story that matters the most to your target audience “theirs” and how your products & services can assist them o0in achieving their strategic and tactical goals. The following executive summary highlights the fourstep strategy that will allow your marketing efforts to stand out from your competitors and dramatically increase your response ratio on your business-tobusiness marketing campaigns.
Definition:
Power Marketing is direct business-to-business marketing strategy:
primary & secondary data is collected on the Prospect Company. The data is then used to draft letters & phone dialogue to help your sales team build immediate rapport with the decision-maker of the prospective company. The Power Marketing process consists of four building blocks:
Identify target market & analyze local marketplace Research Target Companies in Market place
Outcome: 1-Propose business 2-Track Business Developme nt efforts
Contact companies through Power Letters and Power Calling
Identify Target Market:
The target market is set in accordance to “the bank” strategic marketing initiatives of its various lines of business such as: middle markets, small business, and international banking. Identifying various types of industries and collecting relevant local, national, and global industry trends & data, which will be used as leverage when calling on prospective companies? This information can be obtained by conducting research on specific industry segments (such as the Printing industry in Orange County) in a certain geographic location by using primary and secondary data, such as: online public information, local public library, or by purchasing industry specific analysis reports. (See case study, appendix A).
Research & analyze the local
Research target companies in the marketplace:
Is the most important building block of the Power Marketing model; such as business periodicals, local business journals, chamber newsletters, and business wires that is used in drafting Power Call letters and phone dialogue? Bankers can access most of the mentioned tools for free through other online open sources.
Research obtained varies from one company to another thus creating a need for rating the research conducted on companies that bankers can use as a guideline in prioritizing which companies to call on first.
Field Date of business established: Line of Business: Current CEO: Current CFO or other executives: Competitive advantage in the marketplace: History: Stage in business of life cycle: Business Partners and Affiliations Explanation Year started Industry and segments served
Power Marketing research tool 1-Data required:
Awards and Recognitions: Success Story: Future opportunity disposition:
Current Bank & financial service providers: Research Rating:
How does the company differ from its competitors? History of company and regression in business life cycle Based on the researcher observations Industry affiliations, government affiliations, and recognized business partners Awards received and certifications Based on the researcher observations Factors changing in the marketplace that places the company in an advantages situation UCC filings from banks and equipment financing companies See Below Matrix
2-Research Rating:
Research fields completed:
1 2 3 4 5
6 7 8
9 10 11
Research Rating:
Basic
Moderate
strategic
Based on the number of fields completed the research will be given a rating to measure its effectiveness. Assigned bankers and their supporting staff will use the rating to prioritize their calling activities starting by Strategic, Moderate, and then basic. Research conducted on sample test yielded: 20% Strategic, 25% Moderate, and 55% Basic. Note: Power Letters are only sent to Strategic and Moderate companies.
3-Sample Test: USA
Based on a sample of fifty contacts made the following chart illustrates the responses obtained when implementing Power Marketing.
70 60 50 40 30 20 10 0 Outcome NR 62 RP 22 RD 14 P 4
NR: No Response RP: Responded Pending RD: Responded
No Response: prospective company contacted and did not respond to calling officer.
Responded Pending: prospective company responded to calling officer and call resulted in obtaining a request for proposal from the prospective company. Responded Declined: prospective company responded to calling officer, but didn’t meet bank guidelines. Pending: prospective company responded to calling officer and expecting to do business with the financial institution in the near future (less than six months period).
Proposals obtained from responses to calling efforts The following table illustrates proposed products from test sampling (50 Letters). All listed proposals are in various stages of the sales life cycle: (obtained package, under review, decision, proposal out, booked, and declined).
Company Name Com. Property Mgmt. Company RE Developer RE Developer & Prop. Mgmt. Construction Semiconductors Mfg. Software & Business Consulting Business Services Company Software Company Software Company Music equipment Mfg. Business Services Company Media equipment Mfg. Printing company Biotech Business Consulting Golf Mfg DVR Mfg Total Deposits Proposed $2.5MM $1.5MM $2MM $500M $200M $250M $350M Loans Proposed Leases Proposed
$5.3MM $2.5MM $1MM $3MM $400M $2MM $300M $500M $250M $300M $500M
$250M
$200M $150M $100M $8MM
$600M $400M $500M $450M $250M $17.25MM
$1MM
No listings of company names was made in order to protect their privacy, most companies are established businesses in the Orange County marketplace; such as the fifth largest commercial real estate property management firm, tenth largest semiconductor manufacturer in the county, top five real estate developers in the county, and well recognized business service companies.
Appendix A
Case study: Orange County, California Printing Industry There are 720 Printing firms in Orange County with an annual sales range of $1MM to $100M, and aggregate annual sales of $1.7 billion. The 720 firms employ over 12M employees and projected to grow by 4% to meet the expected 6% growth demands for 2004 and 2005. The top 30 privately held printing firms in Orange County are responsible for $1/2 billion of the mentioned aggregate sales and are more affected by upward and downward market swings than smaller firms. The following is the research obtained on one of the printing firms:
Field Date of business established: Line of Business: Current CEO: Current CFO or other executives: Competitive advantage in the marketplace: Explanation 1977 Printing Company, 25th largest in OC XXXXX XXXXX Launched external training arm; to train existing customers & prospects on the new tools and industry changes that pertain to their business. Company obtains 75% of sales from training seminars, which makes them respond faster to market needs. Steady growth since inspection over $12MM in annual sales, profitable except for the last two years due to market demand slow down. Company is profitable in current fiscal year with a 10% revenue growth. Late growth, early maturity Customers List : Taco Bell, Chapman University, NY Life, & PIMCO Premier Print Award and Best Workplace in America award for four consecutive years. Started with on printing machine in 1977 after moving from Ohio to build one of the most respectable printing companies in OC. State of the art technology platform tying their clients online to produce and deliver print jobs specs as well as tracking progress. US Bank and Austin Financial Strategic
History:
Stage in business of life cycle: Business Partners and Affiliations Awards and Recognitions:
Success Story:
Future opportunity disposition:
Current Bank Research Rating:
Power Letter was mailed and followed by a number of telephone contacts to secure an appointment with the CFO of the company in Late May. The outcome of the meeting was a package for a $600M A/R formula line of credit and a deposit relationship for $200M.
Sample Letter:
Dear Mr. XXXX:
By way of introduction, I am a (BANKER TITLE) with (BANK NAME), (BANK BREIF INTRODUCTION). We were conducting some research on local companies (COMPANY NAME) has certainly caught our attention.
What we have observed through our research is that (COMPANY NAME) has been growing impressively since it was established in 1977. Further research indicated that (COMPANY NAME) launched (XXX) University in 1994 in an effort to reach out to its target market with a mission to educate its customers, learn about market demands first hand, and review emerging printing technologies. This enables (COMPANY NAME) to respond to its customer’s demands by adapting first to market strategies, which will help your company in increasing sales revenue in the current printing market rebound stage. Furthermore we uncovered that (COMPANY NAME) was the recipient of the Premier Print Award as well as the Best Workplace in America award for four consecutive years. With that segue, I’m tempted to tell you about (BANK NAME) commitment to entrepreneurs and the various Commercial services we can offer your company such as working lines of credit to facilitate your receivable financing but quite frankly, I will need to earn that privilege over time. I would like to meet with you in a sincere effort to learn more about all you have created with (COMPANY NAME) you clearly have a great story that I would love to hear. Ultimately, it would be useful to explore any mutual benefits (and I think there are many) between (BANK NAME) & (COMPANY NAME). While our brief review suggests you may be quite satisfied with the financial dealings you’ve had with U.S Bank and Austin Financial Group but I feel that (BANK NAME) can bring a lot of financial strength to the ongoing success of your company. Sincerely,
UAE Supplement:
Power Marketing is currently being validated for the GCC region through a Human Resources consulting firm that specializes in psychometric assessments. A sample of 50 letters targeting Financial Institutions and other sectors received a Power Marketing letter six weeks ago that yielded 53% appointment ratio and 20% contracts negotiated thus far. Some of these companies are: 1-AMLAK PJSC 2-TAMWEEL 3- The Media Group 4-First Gulf Bank 5-Gulf Agency Company 6-Abu Dhabi Commercial Bank 7-Etihad Airways 8-Arab Bank 9-AVIS Rent a Car 10-GAC (Gulf Agency Company) 11-JACK’S 12- JUMBO Electronics
60 50 40 30 20 10 0 Outcome NR 30 RP 53 NI 17
Information Source:
All the information gathered was obtained from free online sources /business periodicals such as: AME Info, ZAWYA, GULF Business, MEED, Bahrain Tribune and Khaleej Times. More news periodicals and business wires can be added to the search engine through EBSCO Research Database linking over 2000 business periodicals, news wires, publications, and online sources.
Take advantage of Power Marketing
Implementation:
Adopting Power Marketing will help your organization standout form the competition, save marketing dollars, and pre-qualify your target market. Implementing Power Marketing in your organization will depend on your current technology infrastructure, access to research information, and the research and communication abilities of your sales force.
will work with your Marketing, IT, Training and Sales Departments to develop a marketing process that fits with your existing sales culture and in line with your strategic marketing goals. Our services include: o Marketing Cycle Automation: integration of Power Marketing with your current lead management system or design and implement a marketing management system that mirrors your existing marketing strategy. o Clone your best clients: identify your most profitable target market. o Identify research sources that will be used in obtaining relevant information on target companies and sectors. o Train & develop your sales team in the areas of market research, effective business communication, and phone skills that will lead to a higher response ratio. o Develop a letter library, products and services frameworks, and proposals to be used in the sales and marketing process. o Design and implement of a sound marketing tracking system to track the effectiveness of marketing campaigns in general and individual efforts in particular.
PM Associates