Spring 2007
Budgets are tight. Everyone is challenged to do more with less. No revelation in those statements. The revelation may be that your agency is your best resource to help you squeeze the most out of your marketing budget - literally do more with less.

And no, that doesn't mean we are volunteering to slash our rates by 75 percent or do a buy-one-get-one-free brochure promotion.

It means we can help you determine where your money is best spent. As budgets shrink, decisions get tougher. Are your limited dollars best spent on brand support, or do you need to devote your budget to lead-generating tactics that will boost the bottom line? The wrong decision could quickly deplete your precious few marketing dollars without yielding any measurable impact.

Your agency can give you strategic recommendations based on your budget parameters and craft a communications program that still accomplishes your most important objectives. Here are some of the keys to building a plan that makes the most of your investment:

Prioritize - some objectives will have to be sacrificed. Make sure they are the least important to your company's long-term health.

Plan ahead - take the time to formulate a measured plan for the year, then stick to it.

Maintain the brand - sacrificing the image and quality of the brand to save a few dollars will affect the perception of your company and your product. It will always hurt you in the long run.

Remember that your agency's job is to help you make more money. They are not a vendor or a supplier - they are a partner that is heavily invested in your future success. Get the most out of your agency relationship by involving them in the tough decisions about how to allocate your tight marketing budget. Lean on your agency to give big-picture perspective to your annual marketing investment and it will pay off with increased budgets down the road.

After all, the only thing worse than a tight budget is a wasted budget.
 
In This Issue:
 
 
EMILY SWORD!

Not to brag or anything, but did you see our director of public relations in the April 2 - 8 issue of Crain's Cleveland Business magazine?

Emily was profiled in Crain's "Twenty in their 20s" feature, an annual listing of young professionals making their mark on the Northeast Ohio business community.

Personally, we knew Emily would flourish when we hired her to start and oversee the public relations department, but we had no idea how quickly she would hit the ground running. After just one year, the SH public relations department now includes two full-time employees, two freelancers and one consultant. Click here to see examples of the many placements our PR department has helped its clients achieve.

You would think that all this work would mean rest and relaxation in the evenings and on weekends, but not for Emily. When she's not pitching story ideas, she's busy bailing hay on the family farm or caring for her and her husband, John's, newest family member Nathan.

With a continually growing list of clients, the public relations department now accounts for almost one quarter of our net profit. Not to add any pressure, Emily...but we will continue to expect great things!

With the U.S. Postal Service issuing new rates for first-class mail, you may be considering decreasing your direct mail efforts or even stopping them all together. But with 98 percent of people bringing in their mail daily, direct mail remains an effective communications tool. Rather than stopping your mail efforts, just re-think them.

The new rates are not all increases. Some actually decrease. For example, a two-ounce, first-class letter is currently $0.63, but under the new rate structure the cost will be $0.62.

So what does this mean for your mailers? Well, since larger mailers tend to get noticed more and generate greater results, now may be the time to consider larger-format pieces. Even though two-ounce mailers will still cost more to mail than a postcard, the difference in price will be less than it used to be. The increased effectiveness of larger mailers may actually outweigh the difference in postage cost.

 
We love any excuse to get out... especially when it is with each other! A bunch of us had the opportunity to attend Akron's 2007 Annual ADDY® Awards Presentation. The American Advertising Federation conducts the Addy competition every year as a way to honor and recognize excellence in the advertising industry.

Not only did we attend this year's ceremony, but we also walked out with a few awards in hand! It is always an honor to be recognized among your peers and competition, but since we're so proud, we'd like to take a moment to show off our award-winning creative once again!

Here are our three award-winning pieces:

 
Top 10 Ways to Waste a Marketing Communication Budget

You fight for every dollar in your marketing budget. Don't waste them by making these common marketing mistakes:

#10. Be a one-hit wonder - if you invest in a big marketing push, then disappear for a year, you'll have to invest again to restart the momentum. Leverage your budget by maintaining a consistent presence.

#9. Ignore media relations opportunities - earning editorial coverage in your key media outlets is one of the most cost-effective ways to reach your audience. Not reaching out to the media, or even worse, ignoring their calls, is opportunity lost.

#8. Don't close the loop - once you've got your customers' attention and (glory be) they actually pick up the phone or log on, do something with those leads. Don't let them slip away.

#7. Use poor-quality photography - a picture is worth 1,000 words, and poor-quality photos say some very bad things.

#6. Go through 14 rounds of revisions - additional changes mean additional cost. Limit the number of reviewers as much as possible, and consolidate all changes into one round of revisions.

#5. Do it just to do it - "I don't care, I just have to get something out" is not an acceptable reason to do a marketing piece. Your customer's time and attention is valuable; don't waste it (and your budget) on so-so pieces.

#4. Don't define the project - have the assignment as focused as possible when you give it to your agency. Clearly defining the scope and objectives up front eliminates a costly trip in the wrong direction.

#3. Don't have a plan - doing an ad here or a brochure there without any real focus or direction is ineffective. No plan = no results.

#2. Deviate from the look and feel of the brand - it takes a tremendous amount of time and money to establish a recognizable brand identity. Just one piece that doesn't live up to the established identity can undo the entire investment.

#1. Sponsor the game show "Veal, Or No Veal."

 
Direct mail can be an effective way to quickly reach a targeted group of prospects with a message meant to inspire direct action. In this case, a novel dimensional mailer from SmileyHanchulak Marketing Communications allowed Smith Dairy to react very quickly to an opportunity to increase its share of the regional dairy market. A simple, targeted creative strategy provided measurable results with a low investment and fast turnaround.

 

We all are dealing with the challenges of doing more with less, getting the most out of shrinking budgets, and looking for new ways to increase awareness and market share with cost-efficient solutions.

In light of today's changing business environment, we thought it would be nice to share a few ideas, some observations and an understanding of your ongoing pressures.

We also wanted to toot our own horn a bit, as well as give you a little chuckle.

I personally hope that your quick read-through 47 North provided some stimulating thought into solutions to the challenges you face each day.

The challenge for all of us to improve what we provide to others is a never-ending one. It's kept us going for 29 years.

Thanks for reading!

 

Sincerely,


John Hanchulak
President
SmileyHanchulak Marketing Communications
phone: 330.666.0868