Connect Magazine - Jan/Feb 2011 Issue

R E S P E C T

connect Vision Graphics

Inc.Engaging Marketing Minds Vol 1, Issue 1, Jan/Feb 2011

I N S I D EMarketing Supply Chain

Ink Under Your Fingernails

Consumers Purchasing Behavior

War in the Boardroom

why marketers don’t get the respect they deserve from bean-counters

3

Vision Graphics Inc. – connect • January 2011

publisher’s letter

PublisherMark [email protected]

Managing EditorMichele [email protected]

Art DirectionBrent Cashman • Creative DirectorLaura Martin • Graphic DesignerErik Diamond • Creative Designer

Connect is published bimonthly by copyright 2011. All rights reserved

For more information contact Michele McCreath at [email protected]

W e live in a world that is highly connected. There isn’ t any piece of information or person that can escape us. However, even

with all of the connection devices at our disposal, sometimes we seem less connected than ever before.

In our head-down world of Blackberries and iPhones, we are taking a shot at connecting on a differ-ent level. Welcome to Connect, a magazine dedicated to engaging marketing minds. Our magazine endeav-ors to go deeper than a 140-character text message. We aim to research the ideas that are relevant to you and explore new concepts that could benefit anyone who considers themselves a marketing personality.

We believe that the only sustainable advantage lies within marketing. Often overlooked, marketing encom-passes everything that successful companies do. History has shown that the greatest organizations have a solid mar-keting culture and corresponding marketing disciplines.

As we enter a new economic landscape, it seems that we are at the dawning of a new age. All kinds of people and businesses are reassessing their strategies and their core strengths. In turn, connecting with clients in a more meaningful way is critical to long-term prosperity. Marketing minds are poised to take the lead.

This magazine is about you, and our first issue of Connect addresses what is a subtle, yet significant matter for many companies across the globe. “R-E-S-P-E-C-T” explores the idea that marketing has not received the appreciation that it so deserves. T ypically, marketing is cast aside as promotional work and not considered germane to the success of an organization. W ith per-spectives from some of the best known marketers in the country, we elevate the concept that marketing is at the

core of success and that it needs to take its rightful place in the hierarchy of business.

Connect is dedicated to the marketing mind. In turn, the graphic arts industry is a cornerstone to the marketing world. The transformation that the print community has gone through is extraordinary . Many of the country’s finest companies and brands are part of our world and afford us the chance to present the latest in marketing concepts. Our second article, “Ink Under the Fingernails,” delves into the evolution of printers into a sophisticated group that can offer you marketing services beyond your imagination.

Connect is a bimonthly vehicle with articles devoted to marketing, marketing ser-vices, and strategic concepts for marketers. Along with organically researched ar-ticles, we will provide you with a compilation of mar -keting trends, facts, and commentary . We want to provide you with thought-provoking and digestible content. We want to spotlight the things that matter to you most. We want to connect with you.

Welcome and enjoy.

Mark SteputisPublisher

Connecting

All kinds of people and businesses are reassessing their strategies and their core strengths. In turn, connecting with clients in a more meaningful way is critical to long-term prosperity.

03 Publisher’s LetterConnecting

04 Marketing Supply ChainOperational Effectiveness & Optimization

06 R-E-S-P-E-C-TWhy Marketers Frequently Don’t Get the Respect They Deserve

10 Ink Under Your FingernailsThe Evolution of Print

14 Consumers Purchasing Behavior

15 War in the BoardroomWhy Left-Brain Management and Right-Brain Marketing Don’t See Eye to Eye

COnTEnTS

4

January 2011 • connect – Vision Graphics Inc.

cmo council study

There is an epidemic that threatens the op-timized Marketing Supply Chain. As mar -keters seek to provide the most timely, fresh

and of-the-moment content to customers and channel alike, old, over-ordered or un-utilized materials tend to be stored, de-stroyed or ignored, left to sit an occupy costly space in offices t warehouses. High levels of waste can generally be attributed to limited access to material uti-lization, a lack of visibility into the operational process, and a general lack of forecasting and operational rigor . All of these

factors combine to create an epidemic of waste that can be summed up most accurately as Obsolescence.

Marketing Supply Chain

Understanding the Critical Factors

to Achieving Marketing Supply Chain Operational Effectiveness & Optimization

Obsolescence is not a single excessive order or single pile of un-used collateral not the issue. The pile is merely the visible symptom. In fact, it is what cannot be seen—what is behind the scenes and invisible—that makes an indelible impact on marketing effectiveness and can derail, detract or damage the customer experience.

The shelf-life of marketing consumables and promotional materials has never been shorter or more challenging to manage. Marketers are spend-ing billions of dollars pro ducing, warehousing and shipping marketing literature, packaging, documen-tation, point-of-sale displays, premiums, giveaways, signage and hand outs for all channels of market contact and engagement. How well this portion of Marketing Operations is managed and controlled can materially impact go-to-market effectiveness, as well as the optimal use of marketing dollars in creat-ing business value and competitive advantage.

The Ramifications of Marketing Supply Chain InefficiencyThere are two key aspects to investigate while discussing impact of obsolescence: the impact on budget and the impact on experience. Even as marketers admit to the criticality of content, 51 percent also admit to having sent out old materials containing out of date content. Why you may ask? For a small few, warehousing error (2 percent) can be blamed. And an additional 61 percent can point to their printer/agency/creative for not having the materials ready in time for launch. It is the 23 per -cent of marketers who simply did not know that the old material was sent that is the concern. Are these marketers not interested in this point of the experience and engagement? Or could it be more likely that regardless of their desire to have this level of visibility, it is simply not available?

Waiting for a Priority ShiftThe question still remains that if content is king, and if content is constantly updating and chang-ing to deliver the most relevant and timely infor-mation to customers, why are marketers not ap-plying more rigor to managing the flow of thes critical consumables within the supply chain?

However, there are still companies who are finding transformation to be a challenge. Mos

84% Print collateral

72% Presentations

66% Folders and hand-outs

57% Direct mail

55% Product documentation

54% Signage

39% Multimedia products

29% Premiums

26% P-O-S display

25% Packaging and inserts

25% Demo software

18% Samples

14% Print coupons

10% Other

What promotional materials and marketing consumables do you produce?

5


simply do not view the reduction of obsolescence is not a key priority (50 percent). As one marketer stated, “Waste is just taboo and a can of worms. To open it holds little reward and no compensation, so there is little motivation to start down this road.”

Yet transformation is on the minds of savvy marketers dedicated to operational efficiency an effectiveness. Additionally , there are very real strategies and opportunities to engage that can work to streamline the Marketing Supply Chain.

Obliterating ObsolescenceThe opportunity lies with marketers to transform the Marketing Supply Chain operations and make significant strides to reduce obsolescenc and in turn, redeploy budget that was once wasted on these out-of-date materials.

Leverage digital printing strategies – in-cluding Print On Demand (POD): Digital printing technology has come of age, enabling eco-nomic production of low print. Lower pro duction quantities result in a lower total cost of ownership by reducing capital investment in inventory , stor-age charges, and waste. A POD strategy can further reduce costs by eliminating inventory, storage, and in-bound freight costs. POD also enables more cur-rent and customizable content through the appli-cation of Web-to-Print and variable data printing, allowing marketers to send personalized messages with up-to-date content, without fear of wasted material with out of date of off -strategy messages being stockpiled in inventory.

Cross-Functional Collaboration: Marketers are looking to work more closely with cross functional teams in finance, sales, procurement, warehousin and operations to better forecast and eliminate over ordering. Far too many marketers indicate that orders tend to revolve around “per piece or -ders” or on unknown utilization levels. Through collaboration across various functional areas, mar -keting will be able to better forecast, monitor and manage Marketing Supply Chain operations..Go-Green to Gain-Green: When it comes to the reduction of obsolescence, the more impact made on waste reduction, the greater the green-gains. Obsolescence creates a very real environmental im-pact that goes beyond paper. Excessive ordering and a lack of process, visibility and measurement in the Marketing Supply Chain often necessitates rush or-dering, additional shipping, handling and logistical

demands that all impact emissions, natural resourc-es and carbon footprint. By applying a clear strategy that is focused on reducing obsolescence, marketers can transform the Marketing Supply Chain into a greener operation that optimizes spend and oper -ates as a global green steward.

Bringing in the Big Marketing Supply Chain Brains: Marketers are sensing that to truly affect change, they must turn to experts and third party resources who are better equipped to identify key areas of needs and transformation. As noted in the Define Where to Streamlin research, less than one quarterof marketers have undergone a comprehensive audit of their Marketing Supply Chain. As customer experience and budget are on the line, and as more marketers are becoming at-tune to the money being left on the table because of a poorly managed and constructed Marketing

Supply Chain, experts who can apply leading practices and measures to help optimize opera-tions have become essential to transformation.

Marketers must begin to look at these indi-vidual symptoms of inefficiency with the Marketing Supply Chain in order to optimize budget al-location, operational management and even the delivery of customer experience. Obsolescence is one of the most serious challenges to Marketing Operations as it looks to undermine budget and operations. The goo d news is that a streamlined Marketing Supply Chain is possible. The chal-lenge is that in these critical times where cus-tomer engagement is top of mind and budgets are restricting how far and wide programs can poten-tially reach. W aste and unchecked obsolescence are no longer issues left to other departments or hidden in a marketing closet.

How much of your marketing budget is spent on marketing consumables, including packaging, literature, promotional items, signage, exhibits, or point-of-sale materials?

9% More than 60%

2% 50% - 60%

7% 40% - 50%

12% 30% - 40%

30% 20% - 30%

21% 10% - 20%

20% Less than 10%

How do you forecast the utilization of these items and materials?

33% We do not forecast or manage inventory of materials – we order what we need when we need it

30% Organization-wide forecasts based on current and anticipated usage

23% Material requests from field sales, marketing or channel groups

4% Orders to replenish made automatically based on inventory, not usage forecast

3% Don’t know

2% Monthly estimates from procurement and operating teams

6% Other

6Getting RESPECT

RRRRRR EEEEEE SSSSSS PPPPPPPPP


“All I’m askin’ is for a little respect w

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R-ROI (Return on Investment)ROI is a term often used to subdue marketers, says Jeffrey Hayzlett, hailed a “Celebrity CMO” by Forbes Magazine. “One of the reasons that market-ing seems to take a back seat to sales and financ is that people fail to see the value of marketing. They continually push for an ROI for mar-keting and many elements associated with

marketing, but they also miss the

other ROI—Return on Ignoring. Met-rics and numbers are extremely valuable but, it’ s about hearts and minds.”

E-The EconomyCorporate America is in a financial crisis with n clear end in sight, and the effect of the crisis on the role of marketers can’t be ignored. Steve Jones, former CMO at The Coca Cola Company and principal at (r)evolution, says that as result of the

economy, most executive leadership teams have gone into a mode of extremely low tolerance for exploratory growth and high reliability controls.

“Most leadership teams are content to grow the bottom line with the low-risk ap-

proach—reducing costs and increasing efficiencies—not by investing inrevenue growth drivers. The recent financia institution crisis and mortgage collapse has led to new SEC regulations, tougher reporting rules, stricter banking policies and, for many companies, a loss of credit lines. The “cash is king” mentality fueled fears of investing in real revenue growth. Most organizations became so risk averse that they overtly communicated in-tolerance for any high-risk, unproven marketing initiatives. Unpredictable results scared most leaders. They stopped playing to win and started playing not to lose.”

In American culture there are feuds that have become legendary: Alexander Ham-

ilton versus Aaron Burr , the Hatfields versus the McCoys, Al Capone versus Bug

Moran and….Marketers versus Management. Though no bloo d is spilled in board-

rooms, these opposing forces battle it out routinely, and far too frequently, it’s the mar-

keters who are overruled, undervalued and disrespected. So, why don’ t marketers get

the respect they deserve? Reasons range from complex physiology and sociology to

simple economics. Here are a few for your consideration:

– from Respect sung by Aretha Franklin, number five

on Rolling Stone’s list of The 500 Greatest Songs of All Time

EEEEEE CCCCCC TTTTTTWhy Marketers Frequently Don’t Get the Respect They Deserveby Lorrie Bryan

when you come home—just a little bit…”

8


8


Getting RESPECT

S-Social MediaMarketing is stuck in second gear. Al Ries, marketing guru and best-selling author of The Fall of Advertising and the Rise of PR, says that if marketing were an automobile, it would be making a lot of noise, but not getting anywhere.

“Second gear is social media. The entire marketing community , including the trade press, is fascinated by social media and spends endless hours discuss-ing its uses and functions. It’s as if the success or failure of a marketing program hinges on just one thing—the proper use of social media. There hasn’ t been as much chatter about a single marketing concept since the rise of television in the 1950s, so perhaps the excitement is understandable—apparently a new medium appears only about once every 50 years or so.”

So, is social media important? Yes, but, as Ries points out, “It’s only a tactic. And tactics are never as important as strategies. A company can be suc-cessful with a goo d strategy and poor tactics, but almost never with good tactics and a poor strategy. The excitement about social media has blinded many marketing people to the importance of de-veloping a good strategy. They seem to think that executing an effective social media program is all that’s necessary to achieve success.”

P-Processing differences in the brainIn their recent book, War in the Boardroom , Al Ries and his daughter and business partner Laura Ries propose that fundamental differences in the way people process informa-tion—whether the left or right hemisphere of their brain is domi-nant—lead to conflicts within businesses. Management tends t be left-brained (verbal, logical, analytical) and marketing tends to be right-brained (visual, intuitive, holistic). Right-brainers tend to make the best marketing people, but they seldom become top management types.

“Marketing is considered by most management people as nothing but “common sense.” And who has more common sense than the CEO? This is why many chief executives don’ t hesitate to overrule their marketing people when it comes to deciding on marketing strategies. It’ s been our experience that the CEOs of most companies today are the ones who are conceiving and developing their companies’ marketing strategies. And they tend to treat their marketing departments as the people who execute the strategies developed by the top management team. And frankly , most corporate strategies to day are weak, with the possible exception of companies like Apple, Oracle and a handful of other companies,” Laura Ries explains.

E-Expansion v. contractionIs marketing common sense? No; most of marketing’ s most important prin-ciples are illogical. Laura Ries cites the expand-contract argument as an ex-ample. “The best way to build a brand is by narrowing its focus: Driving in the case of BMW, Prestige in the case of Mercedes-Benz, Safety in the case of Volvo. But management thinks otherwise—most management people want to expand what a brand stands for in order to attract more customers. That’ s

why Hyundai, a low-price brand, is busy introducing high-priced cars. And the high-price brands are doing just the opposite—introducing low-price cars.”

“In all of the meetings we have ever had with management people, we almost never hear words like focus or eliminate or contract,” adds Al Ries. “What we hear over and over again are words like expand, leverage the brand, develop new markets or line extensions. Management needs to recognize the difference between the two ways of thinking. They need to make sure their marketing departments are staffed with right-brainers before they allow their marketing people to formulate strategies.”

C-Confusion about MarketingSo, just what is marketing? Dr. David W. Rosenthal, a professor of Marketing at Miami University, notes that the confusion about the definitio of marketing is problematic. “I think that there are two very dif-ferent definitions o marketing. I’ll call them MAR-KETING and marketing. MARKETING is the ver -sion that we teach in our colleges and universities. It encompasses the 4Ps (pro duct, price, promotion, and place) and much more. It includes segmenta-tion processes, customer behavior , competitive po-sitioning, environmental scanning and linkages to the rest of the organization. Overall, MARKET-ING represents a philosophy of putting customers

and their needs first; everything else flows from thatHowever, the common definitio of marketing is essentially

equivalent to promotion. “If one asks someone on the street what mar-keting involves, they will immediately launch into illustrations of ad-vertising and sales promotion. This narrower definition has becom

so widespread that it dwarfs the broader meaning of MARKETING in the public’s perception.

“I fear that the confusion is so deeply established that we have lost “the rights” to the term and need to find another “brand” for our function, Rosenthal adds.

T-TechnologyTechnology fueled the Information Age which has allowed rapid global communications and networking to shape our mo dern society, market-ing notwithstanding. Rosenthal contends that technology has ero ded the prestige of professional marketers. “The proliferation and fragmentation of media and the advent of e-commerce have trivialized the perceived role of the marketer. With so many communication avenues and stories of teen-aged technical whizzes creating million dollar We b sites, the prestige of professional marketers has ero ded. Ironically , the increased complexity calls for more professionalism, not less.”

“To be certain, the ability to communicate with customers in two-way dialogues and the application of technology to mass-customize efficientl will be critical,” says Rosenthal. “But the essential task of marketing won’ t change. Find a need and fill it, efficient .”

“The proliferation and fragmentation of

media and the advent of e-commerce have

trivialized the perceived role of the marketer.”

– Dr. David W. Rosenthal, professor of Marketing,

Miami University

9


T - ToleranceMarketers need to advocate tolerance for explor -atory solutions.

We now know that we are not going back to any previous state of economic expansion and spending any time soon, and business leaders are also realizing that cost cutting and efficiencies ar not enough to grow the bottom line. Marketers have an opportunity to be a respected player as analysts and investors start to exert pressure for

better results driven by top-line revenue growth. However, as Jones points out, it is essential that marketers develop within the C Suite a tolerance for exploratory and insightful solutions.

“They need to make the case for managed risk taking. They need to demonstrate that they understand the company agenda, can explore possibilities responsibly without betting the farm or burning unpredictable sums of cash. They need to make the case that the landscape has been shifting since we all put our heads down in September 2008. New players from India are providing better services; new pro ducers from China are increasing quality pro ducts; new middle classes are emerging that we need to pen-etrate. Consumers have completely shifted their attitudes and values and need to be approached in a new way . And marketers need to act like business leaders, not flakey ad guys.”

C-CredibilityMarketers need to regain credibility by under -standing the new landscape and creating a new marketing model.

Jones contends that marketer’ s credibility is questionable because they haven’t figured out th true value of new technology . “They haven’t figured out how to use it in a way that new young consumers want to use it. They abdicated their responsibility to the ad agency whose only interest

is the preservation of their old financial m del.

“To regain credibility and respect, marketers need to take back responsibility for under -standing how to use the digital and Web technology as a mean-ingful marketplace. They have to abandon the traditional TV advertising campaign mental model. They need to stop translating from ad-vertising into digital. If a marketer abandons all that is old and immerses themselves in new technology and new consumer attitudes and be-havior they will emerge with a whole new cred-ible marketing mo del that will generate more sales revenue and earn them a seat at the C Suite Table.”

Hayzlett suggests that marketers should be prepared for the landscape to constantly

change and welcome the challenges and op-portunities that it brings. “Marketing is such a dynamic field, and with technology evolving rapidly, it is becoming ever more complex with even more creative outlets. I think the best marketers are those that embrace change while knowing their brand and what it means to customers. They should constantly be learn-ing about themselves, the market, customers, and new technology they can utilize.”

B-Big PictureMarketers need to maintain their focus on the big picture.

To be a valued player , Jones says you need to understand the current macro business context, “And figure out a valuable strate

gic contribution to the CEO and total company game plan.”

As predominantly left-brain thinkers, law-yers, accountants and most management profes-sionals are more inclined to focus on the details—bean counters are good at counting beans. But as Al and Laura Ries purport, the traits that make a good lawyer or accountant are almost exactly the opposite of what makes a good marketing person. “Someone in the boardroom needs to focus on the big picture, and that is the role of the marketing specialist,” Al Ries affirms

TCB : Take Care of Business “R-E-S-P-E-C-T, find out what it means to me. R-E-S-P-E-C- , take care…TCB.”

The last line of Respect is often misquoted as “Take out, TCP”, or something similar, and many published music sheets which include the lyrics are inaccurate. TCB is an abbreviation that was commonly used in the 1960s and 1970s, meaning Taking Care of Business. TCB later became Elvis Presley’s motto and signature, from his necklace to his band and private jet plane.

So how should marketers take care of business and earn respect? Here are some suggestions:

“Marketing is such a dynamic field, and with technology evolving rapidly, it is becoming ever more complex with even more creative outlets.”

– Jeffrey Hayzlett

1010evolution of print


“They are not just providing a product; they are helping their clients comm

unicate more effectively and effi ciently with new capabilities.”– Peter Muir, president of Bizucate

11

Vision Graphics Inc. – connect • January 2011Vision Graphics Inc. – connect • January 2011

11

But the truth is Nostradamus did not make predictions about the W orld Trade Center attack o r, at least, none that could easily be understood from his writings. He did not men-tion “the new century,” or “nine months” and New York is not at 45 degrees.

Nor did he predict an apocalyptic end to the print in-dustry. And it’s probably safe to say that the Mayan Calendar Prophecy doesn’t point to the dramatic end of the print era—in 2012—either. Yet the epic demise of the print industry has been the source of much debate and has garnered merit with arguments ventured on either side.

With 20/20 hindsight, it’ s probably safe to say that print did not die and is not going away , but the industry is experiencing a significant shift. In the last two decades, a industry that has had no significant technological change

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nine months, from the sky will come a great king of terror . The sky will burn at 45 degrees… fire approache the great new city… there will be thunder… The third big war will begin when the city is burning…”

12since Gutenberg invented moveable type in the 1400s has gone beyond adjusting to evolving. What was once a craft industry dependent upon the skill of the person driving the equipment is emerging as a manufacturing industry driven by technology . Further , businesses that once provided just print services are increasingly providing adjunct comprehensive marketing services. As the adage goes, “What doesn’ t kill us makes us stronger.” And many would contend that this is the case with the print industry. Savvy printers are reinventing themselves, and increasingly be-coming marketing service providers, not just print providers. According to David Murphy, director of Marketing Americas, HP Graphics Solu-tions Business, the tipping point is yet to come, but there has been a shift in the last four years that is gaining momentum.

“There have been a successive series of points—technology , user be-havior, economics—that have made it necessary for printers to reinvent themselves. And many printers have reacted and responded with changes that will ensure their future success. No longer an ink-on-paper business, they are evolving, becoming holistic—differentiating their services with a scope of offerings that compliment print, arming themselves with the necessary knowledge and skills to become marketing service providers rather than remaining commodity providers,” Murphy says.

As Peter Muir, president of Bizucate points out, 20 years ago, fast turnaround on a quality pro d-uct at a reasonable rate was all that printers needed to offer to survive. “However , 20 years ago, there were only four primary ways to communicate—radio, T V, print and phone. Now there are multi-ple communication channels and being seen or heard is harder than ever. Ads are everywhere and there are so many more messages. Few of

the companies that continue to do things the way they did them 20 years ago will survive in today’s competitive business climate.”

Fortunately for printers, the technology that led to communication competition was not the only innovation of the decade. Nearly 20 years ago, Benny Landa, inventor of the Indigo press and often considered the father of digital offset printing, predicted, “Everything that can become digital will be-come digital—and printing is no exception.” Just 15 years ago, printers could not print a one-off pro duct. But with the development of digital print-ing, we now have Internet companies that have 100 digital presses print-ing photo books one-off.

Joe Truncale, NAPL president and CEO, remembers the early pre-dictions about the potential of digital technology to change the game. “I recall the NAPL (National Association of Printing Leadership) To p Management Conference in 1995. We had two keynote speakers who really set the tone for the future. First was Nicholas Negroponte, who at the time was the director of the Media Lab at MIT. The second was Don Tapscott, who, even in those early years, did extensive research on digital communications. Their message was clear. As communication technology moves from analog to digital, the possibilities are nearly end-less. Most of what they predicted has come to pass—though it took a bit longer than they initially thought.”

evolution of print

12since Gutenberg invented moveableadjusting toadjusting toadjusting evolving. What was onceskill of the of the of person driving the equipmentindustry driven by technology. Further,just print services are increasinglymarketing services. As the adage goes,stronger.” And many would contendindustry. Savvy printers are reinventingcoming marketing service providers,to David Murphy, director of Marketing of Marketing oftions Business, the tipping point is yetin the last four years that is gaining

“There have been a successive serieshavior, economics—that have madethemselves. And many printers havethat will ensure their future success.they are evolving, becoming holistic—differentiatinga scope of offerings of offerings of that complimentnecessary knowledge and skills to becomerather than remaining commodity providers,”

the companies that continue to doyears ago will survive in today’s competitive

Fortunately forFortunately forFortunately printers, for printers, for the technologycompetition wascompetition wascompetition not the not the not only innovation only innovation onlyBenny Landa,Benny Landa,Benny inventor of inventor of inventor the of the of Indigo pressdigital offsetdigital offsetdigital printing, offset printing, offset predicted, “Everythingcome digital—and printing digital—and printing digital—and is printing is printing no exception.”not print a one-off product. one-off product. one-off But withing, we now have Internet companiesing photo books one-off.

Joe Truncale, NAPL presidentdictions about the potential of digital of digital of“I recall the NAPL (National AssociationManagement Conference in 1995.really set the tone for the future. Firstat the time was the director of the of the of MediaDon Tapscott, who, even in thoseon digital communications. Their messagetechnology moves from analog to digital,less. Most of what of what of they predicted haslonger than they initially thought.”

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13

Vision Graphics Inc. – connect • January 2011Vision Graphics Inc. – connect • January 2011

With digital technology now in place, many industry firms have mad the leap and have become “digital printers.” Truncale says that these firm are now coming to terms with two undisputable truths. “First, it does not matter what your process is—in fact, when you describe your business by your process, you are in the process of going out of business. What matters most is what you can provide for your customers and how what you pro-vide helps them meet their objectives. Second, the promise of digital printing is not found in the box—no matter which digital press you chose—but it is found in the data. More to the point, the promise of digital printing lies in the ability to understand, store, manage, measure and analyze data.”

Muir says that printers will not just survive, but thrive by continuing to add additional ser -vices to leverage print services with other channels. “It’ s been proven that multi-channel marketing pro duces the best results. Five years ago, innovative printers started offering mail-ing services, graphic design services and data-base analysis, and now they are adding Web design, PURLs and QR co des, and mobile and e-mail marketing programs. They are not just provid-ing a pro duct; they are helping their clients communicate more effectively and efficiently with new capabilities.

The transition from print providers to market-ing service or solution providers is not a tremendous challenge for many printers. As Murphy points out, many of the elements needed for printers to become marketing service providers are already in place. “They are inherently cre-ative, they have problem-solving skills and experience, and they are communicators at their core with more ways to reach buyers than ever before. They will have to constantly educate them-selves so that they can continue to add value to their services.”

Perhaps the single biggest obstacle for traditional print com-panies on the path to evolution is a lack of a comprehensive

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customer-facing strategy. “In order to become a mar -

keting services provider , you must begin by knowing and understanding the

customer’s business and what they are trying to accomplish. This selling method is far different from

how sales have been generated in our industry for years,” affirm Truncale. “That means forgetting what worked in

the past—for the most part, that doesn’ t work anymore. O r, more likely, it means the painful path of implementing a new business development process while hanging on to what we are doing—and getting—at least for the near term. Some sales pro-fessionals are capable of making the transition, most are not.”

Marketing service providers…marketing solution provid-ers…printers? As the industry works through the process of redefinition what is the best name for this evolving print and marketing services provider? “There is a great deal of uncertainty over what exactly we should call ourselves,” acknowledges Truncale. “Clearly, we provide more than printing alone, and that is a good thing. But that naming

part has emerged as a significant challenge I recently spoke with one NAPL member who told me that after struggling with this for some time, he finally hit on an idea. He aske a few of his best customers this question: ‘When you leave your place of business to come and see us, where do you say you are going?’ The majority of his customers responded, ‘ To the printer’s.’ So he decided that if it was goo d enough for his best customers it was goo d enough for him and he kept printing in his name.”

Regardless of what you call this evolving industry, the fact is that print remains an essential part of most multi-marketing campaigns. “We can’t for-get that print is part of the equation. People are looking for solutions and print offers more options than ever before,” adds Murphy.

13 in place, many industry firms have made

“digital printers.” “digital printers.” “digital Truncale says that these firms two undisputable truths. “First, it does not

fact, when you describe your business byprocess of going of going of out of business. of business. of What

13

14


print in the mix

Methodology: Online survey commissioned by A TG, and de-ployed by independent online market research firm MarketTools, during the fourth quarter of 2009. The survey has an error rate of +/- 3% for each 1,000 respondents.

Top-Line Results:Consumers are using multiple channels to re-search, shop and purchase.

Nearly one-third of consumers say they rely on three or more different channels (online, in-store, print catalogs, mobile devices, customer service reps) from the time they start research-ing products and services to when they complete their purchase; Eight out of 10 (78 percent) report using at least two or more channels to perform purchasing research.

Catalogs are a strong traffic driver to the eb. 78 percent of consumers said they use catalogs

to browse and discover new products and services. Catalogs remain an integral part of the mul-

tichannel shopping experience.

Consumers Purchasing Behavior

The 18-34 age group makes the greatest use of mobile devices for commerce – 23 percent say they make purchases on their mobile devices at least four times a year, 15 percent make purchases monthly, and 8 percent say they do so weekly.

Social media is another emerging mar -keting channel.

Like mobile, the use of social media and networks is currently being adopted more fre-quently by the 18-34 age group. When broken down by age group, 42 percent of 18-34 year olds, 23 percent of 35-54 year olds, and 8 per-cent of those aged 55+ say they incorporate online purchasing activities into their presence on social networks such as Facebook, MySpace, and Twitter.

22 percent of all consumers surveyed aren’t aware of social media as a purchasing channel.

Consumers often start browsing and re-searching online, yet ultimately make purchases in the store.

39 percent say they went to a store because they preferred to touch and feel the product.

36 percent said they visited a store to compare several brands of the same product.

22 percent said they opted for the store because they needed the product immediately.

Print in the Mix and ATG partnered to survey a pool of 1,054 respondents, age 18 and older, living in the

continental United States to explore the consumers purchasing behavior aligned with multiple channels of

Web sites, brick-and-mortar stores, catalogs, mobile devices, and customer service representatives.

In addition, the survey studied consumers’ reactions to the experiences found using different shopping channels.

Six out of 10 consumers surveyed say that make purchases via catalogs four times a year or more.

Mobile commerce is playing a role in the cross-channel experience, particularly with younger consumers.

27 percent of consumers 18 and older are using their mobile devices to browse or research products and services at least perio dically--this number jumps to 41percent for the 18-34 year-old age group.

13 percent of consumers are using mobile devices to make purchases at least four times a year.

Take-Away: “On average, more than three-quarters of consumers are using two or more channels to browse, research, and purchase products. Because consumers are coming to merchants through multiple channels, it’s necessary to link those experiences and create a continuous conversation to avoid gaps where the sale could be lost. Merchants don’t have to necessarily serve up the identical experience in each channel, but rather optimize and connect channel interactions to deliver consistent brand experiences.”

Daily

Weekly

Monthly

4-6 times per year

Never

How frequently do you browse/research products or serverices by looking at catalogs?

Daily

Weekly

Monthly

4-6 times per year

Never

How frequently do you purchase products or services by looking at catalogs?

0 5 10 15 20 25 30 35

4%

17%

24%

34%

22%

0 10 20 30 40 50

41%

47%

9%

3%

1%

15


book recommendation

Some people expect us to promote books that teach sales or printing techniques. And although we appreciate some of the printing and sales literature available, we believe it is critical for us to deeply understand what makes marketers tick. Therefore, diving into a book like “War in the Boardroom” has catapulted our perspectives to another level.

Al and Laura perfectly explain the dif-ference between management and market-ing through the use of well known brands like Coke, Starbucks, and GM. They eloquently point out that marketing and management are at war in today’s boardrooms. The reason for the war is that marketing and management don’t understand each other. The reason they don’t understand each other is that their brains are dif-ferent. Management people tend to be left-brain thinkers; they are verbal, logical and analytical. Marketing people tend to be right-brain thinker; they are visual intuitive and holistic.

This father and daughter combination explores the conflict between marketing and management and documents how it is bad for companies. The purpose of this book is to get marketing and management to better under-stand and appreciate each other’s roles in help-ing brands to succeed. However, it also provides a fantastic template for anyone working with or

within a corporation. In other words, it allows us to consider the thought process of others and explains how we may need to adapt our thinking to make progress.

Selling a marketing program to top man-agement can be extremely difficult. Left-brain management is not on the same wavelength as right-brain marketing. You will have a better understanding of marketing objectives when you realize that most right-brain marketers an-swer to management. Therefore, to gain the support that marketing deserves, you need to learn how to help them deal with left-brain thinkers who are highly verbal, logical, and analytical. Read “War in the Boardroom.” You won’t be disappointed!

You will have a better understanding of marketers’ objectives when you realize that most right-brain marketers answer to management.

Many people consider Al Ries’ “22 Immutable Laws of Mar-

keting” to be the Bible to marketing success. It has long

been considered to be a fantastic reference guide for mar-

keting minds and is easily digestible. So when Al and Laura Ries came

out with “War in the Boardroom,” we just had to pick up a copy. And we

were not disappointed.

War in the BoardroomWhy Left-Brain Management and Right-Brain Marketing Don’t See Eye to Eye – By Al & Laura Ries

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Connect Magazine - Jan/Feb 2011 Issue

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