February 27, 2009

What's the Big Idea? – John Gallant, Network World, Inc.

2009 Enterprise Technology Purchase Process – Jean Romeo, Research Concepts, LLC

Understanding the Media Buying Process – Elyse Tager, Elymedia, LLC

The Value of Print Advertising

"It takes a big idea to attract the attention of consumers and get them to buy your product. Unless your advertising contains a big idea, it will pass like a ship in the night."   — David Ogilvy

What’s the big idea you’re conveying to your existing customers and, even more important, to potential new buyers during this recession?

Think about it: What are you telling IT executives about your products and services that will convince them to risk their precious budget dollars with you right now? What are the core value propositions that you’re presenting that will make these cash-strapped and over-worked consumers sit up and pay attention?

In conversations with IT leaders, I’m hearing the same messages over and over again. With the economy in a deep funk, they’re paring down dramatically the number of new IT initiatives they’re undertaking. (Some of them actually see this as a good thing. Projects pushed by business leaders that had marginal – or, worse, doubtful – ROI have been wrung out of the system). Resources that would have been focused on that now-lightened project load are being focused on cost reduction and simplification of the technology architecture.

That means: Fewer products and fewer vendor partners.

I recently moderated a roundtable discussion with the CIOs and CTOs of a couple top financial firms, a leading global entertainment company and a luxury brands retailer. Two of the companies are actually faring pretty well during the downturn and are taking advantage of their competitors’ woes to pick up market share or get into new markets. The other two organizations were more challenged, facing customer losses and declines in revenue.

But the four firms were remarkably similar in their IT focus: simplify, optimize, streamline, reduce cost.

If your company is a core vendor to one of these IT buyers, that might be good news. It’s clear that IT executives are looking for their top suppliers to work with them on these initiatives and provide more insight and guidance on how to do more with less. (This is why it’s very smart business to get closer to customers during a downturn).

But if you’re trying to get your foot in the door of an IT shop like those above – and they represent IT shops at large – good luck. New suppliers mean new complexity to manage, new relationships to navigate, new training for already beleaguered IT staffers. ‘New’ can equal ‘risky’ at a time when risk avoidance is a central tenet.

So how do you open the door?

By answering the question I posed at the beginning. What’s the big idea you’re conveying to customers during this downturn?

Have you crystallized the core message – of savings, of optimization, of automation, of simplification, of whatever powerful benefit – for cash-strapped customers? Have you made clear to prospective customers what your brand stands for at this critical time?

Also, how are you delivering that brand message? Busy and purchase-wary buyers are far less likely to download your whitepapers and watch your webcasts if they don’t have some strong brand association with you – if they don’t already know what your big idea is and why it’s relevant to them. If they don’t know anything about your company’s background and stability, your partners and your customers, they may listen for a moment, but then turn away.

So while online programs are terrific tools for finding prospects and it feels safe to rely on them when your own budget is tight, you can boost your lead-gen efforts by blending in other media like print advertising and events sponsorships that can deliver your big idea in a big way. When buyers are burrowed in, you need a clarion call to get them out of their holes.

Many of you likely recall the famous McGraw-Hill ad featuring a stern older man, ostensibly facing a salesperson, and stating:

I don’t know who you are.
I don’t know your company.
I don’t know your company’s products.
I don’t know what your company stands for.
I don’t know your company’s customers.
I don’t know your company’s record.
I don’t know your company’s reputation.

Now – what was it you wanted to sell me?

In a lousy business environment, those questions ring even louder. They can only be answered with branding that delivers a big idea to buyers.

So, what’s your big idea and how are you going to make it heard?

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2009 Enterprise Technology Purchase Process
Jean Romeo, Partner, Research Concepts, LLC

Technology has become pervasive in our everyday life – it is almost impossible to get through the day and not see people talking on a phone, texting or checking email. Since so many are comfortable with technology, it makes sense that the technology buying process at organizations has changed. Who is initiating the decision to purchase technology-related products at organizations? Who is selecting the technology vendors? Has the role of IT changed?

In order to provide insight into these questions, Network World conducted a research study to identify the influencers at different stages of the technology buying process. The goal was to help vendors connect with buyers when they are involved in the process.

An online survey was deployed during the last quarter of 2008 to members of Network World’s Technology Opinion Panel. Results are based on 302 qualified respondents who were screened for involvement with technology purchases so they have knowledge about the process.

Three broad categories of decision-makers for technology purchases were identified:

Business Decision Makers (BDMs): Non-technical management including C-titles such as CEO, COO and CFO

Executive Level IT: Technical C-level/Executive level titles such as CIO, CTO, CSO, VP IT

Technical Decision Makers (TDMs): IT Management

Respondents rated the influence that the 3 functions (BDMs, Exec IT, and TDMs) have on each of 5 steps in the buying process (1 = Not at all influential to 5 = Very influential). The buying process steps are:

#1: Identifying the business need
#2: Researching technology solutions
#3: Creating vendor short lists
#4: Making a final vendor selection
#5: Implementing the solution

The primary influencers identified below had significantly more influence than any other group. Secondary influencers had the second most influence on the different steps. The results indicated Executive-level IT has the most influence in terms of jump starting the technology purchase process. Once a need has been determined, TDMs are most involved with doing the research and creating the vendor short list. While Executive-level IT has the most influence on the vendor selection, we found that they would not authorize a purchase without the recommendation of TDMs. Finally, TDMs are responsible for implementing the solution.

Key Influencers by Stage of the Technology Buying Process

As buyers move through the process, their information needs change. Respondents told us how Network World helps them with their decision-making. Below are some of their verbatim responses that relate to each stage of the buying process.

Key Take-aways
One of the main objectives of this research was to take a “pulse” on the technology buying process to see which stakeholders in the organization are driving the process. The results here found that BDM influence is most prevalent at the beginning of the process, but they are not more influential than Executive IT. After the first step in the process, BDM input really tapers off as Executive IT and TDMs drive buying decisions.

Find out more
For more information regarding this research, the Network World audience's integral role in the purchase process, or to have a presentation of the complete study, please contact your Network World sales executive.

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Understanding the Media Buying Process
Elyse Tager, Founder and Principal, Elymedia, LLC

We have been doing media strategy, planning and buying for many diverse clients over the years. The clients have been very different – from high tech to consumer ecommerce companies. But the process is always the same. Here is a brief recap of how we approach the task.

Discovery phase
This is perhaps the most important piece of the puzzle. The purpose of this process is to establish objectives and how you will measure success, define target audience, budget what you can afford to pay per click or per lead. Typically this includes several lengthy meetings and/or conference calls with our client to be sure we have fleshed out all the details necessary, and are all in agreement about the final outcome.

Objectives might be one or more of the following:

• Branding
• Sales
• New leads
• Web site traffic

Measurement – decide what metrics are important and can and will be measured:

• Number of eyeballs on the site
• Traffic on site
• Units of sale
• Click thru %
• Cost per click or action

Target audience – define as clearly and distinctly as possible who the audience (or audiences) is for this campaign, product, or offer.

For a business offer these might include:

• Titles/functions within the organization
• Company size
• Decision-making influence over what areas
• Industry

For a consumer product or offer:

• Gender
• Geography
• Income level
• Homeowner vs. not

Budget – be clear on what the allowable budget is before attempting to plan a buy. It’s impossible to put together a plan if we don’t have a good idea of the size initially.

Crafting the buy itself is similar to putting together an elaborate puzzle. Once all of the above issues are decided in the discovery phase, the media buyer will decide what types of media will be pulled into the plan (print, radio, TV, online), and RFPs (request for proposal) are sent out to publishers ad reps (or radio or TV reps, etc). Proposals will come back on an agreed upon date. Then begins the fine art of piecing together the most cost effective, on-target, and best responding plan possible. Several rounds of refinement and price negotiation usually take place between the buyer and the reps before the plan is finalized.

Two key things will lead to the most successful buys. The first is thoroughness of the discovery phase. The more talking, exploring, teasing out, challenging and defining are done at the beginning, the better the outcome. Dialog will lead to new strategies, additional targets, more creative ad copy, nuanced offers. It’s all good and must come at the beginning of the process and the ultimate outcome agreed upon by all participants. The second is a good collaboration between client, media buyer (agency or in-house) and the ad reps themselves – no one can operate in a vacuum. The client knows their audience and product better than anyone. The reps know best what they have to offer. There will always be multiple points of view and, since the process of media planning is more art than science, lots of subjective interpretation. The planner’s job is to find the best intersection between the two.

Author Profile
Elyse Tager is founder and principal of Elymedia, an online and traditional media agency that has worked with many of the world's most recognizable brands, from Microsoft to PowerBar. With 20 years of executive marketing experience in direct response and 10 years of Internet marketing experience, Elyse has gained a thorough understanding of both types of media and how they interact. This depth of experience and knowledge has benefited her clients as they strategize marketing objectives in both on- and offline worlds. Contact her at info@elymedia.com.

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The Value of Print Advertising

The study “When Advertising Works” by Yankelovich (June 2008) reinforces the conventional wisdom that ads in traditional media – magazines being one of them – are still “much more likely” to make a positive impression on the people reading or receiving them, than ads running in digital media.

Why? Because people reading magazines, or consuming other forms of traditional media are in a more positive mood, more relaxed, and more likely to be receptive to the diversion of a magazine and the advertising contained. The search mentality most people go online with is in stark contrast to the mind-set of people seeking out strategic, knowledge-expanding information when the reader has more immersion into the content.

One reason for this is a magazine’s portability – it can travel to where and when the reader has the mental time to share with it; a reader can access it several times to engage at different points or reread an article, and a single issue can be read by many more than the initial recipient.

Data points from Forrester Research supporting the power of print advertising include:

1. Business decision makers (BDMs) rank industry-specific magazines among the top 5 media they use on the job.
2. BDMs – and top executives in particular – are highly involved and engaged with industry-specific magazines, and their involvement has remained consistently high since 2001.
3. Top executives are highly-involved with industry-specific magazines: 67% read 3 or more titles in the last month. Over half (51%) spend 3 or more hours reading industry-specific magazines per week.
4. 44% of BDMs say their use of industry-specific business magazines will increase or increase significantly in 2009.

Plus, magazines produced more positive results in the most stages of the purchase process and in the most campaigns. The table below shows the percent out of 20 studies in which purchase process metrics were positively influenced by medium.

Magazines More Effective During Each Stage of the Purchase Process

Source: Marketing Evolution, 2006

Given the fact that technology decision-makers have an affinity to multiple forms of media, it is important to remember that a media plan needs a mix between awareness, branding, and direct lead generation. Customers will more likely “click” on companies they are already familiar with, and who have a good brand standing with them, than an unknown company.

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