Get the Word Out

1
Get the Word Out!

• A (small) Chapters Venture into Marketing
• Presented by John Carter
• OKC Chapter 86
• January 2009

2
Table of Contents

• Assumptions
• Basic Definitions
• Marketing Basics
• Basic Research
• Types of Advertising
• Basics and Planning
• Chapter Choices

3
Assumptions

• APICS is perceived as having programs and
  certifications which are industry standards for
  the manufacturing environment.
• Pricing is appropriate for the market.
• Product Family advertising
• Two-prong Distribution/Sales method
• On-premise Sales
• Advertising
• Chapter in early stages of organizational
  development

4
Basic Definitions

• It's easy to become confused about terms like
  advertising, marketing, promotion, public
  relations and publicity, and sales. The terms are
  often used interchangeably. However, they refer
  to different -- but similar activities. Here are
  some basic definitions to help you in your
  marketing quest
• One Definition of Advertising
• Advertising is bringing a product (or service) to
  the attention of potential and current customers.
  Advertising is focused on one particular product
  or service. Thus, an advertising plan for one
  product might be very different than for another
  product. Advertising is typically done with
  signs, brochures, commercials, direct mailings or
  e-mail messages, personal contact, etc.
•  

5
Basic Definitions

• One Definition of Promotion
• Promotion keeps the product in the minds of the
  customer and helps stimulate demand for the
  product. Promotion involves ongoing advertising
  and publicity (mention in the press). The ongoing
  activities of advertising, sales and public
  relations are often considered aspects of
  promotions
• What target markets are we trying to reach with
  our ads?
• What would we like them to think and perceive
  about our products (this should be in terms of
  benefits to them, not you)?
• How can we get them to think and perceive those
  benefits?
• What communications media do our customers see or
  prefer the most?
• Consider TV, radio, newsletters, classifieds,
  displays/signs, posters, word of mouth, press
  releases, direct mail, special events, brochures,
  neighborhood newsletters, etc.

6
Basic Definitions

• Advertising and promotions are best carried out
  by implementing an advertising and promotions
  plan. The goals of the plan should depend very
  much on the overall goals and strategies of the
  organization, and the results of the marketing
  analysis. The plan usually includes what target
  markets we want to reach, what features and
  benefits we want to convey to them, how we will
  convey it to our customer (this is often called
  your advertising campaign), who is responsible to
  carry the various activities in the plan and how
  much money is budgeted for this effort.

7
Basic Definitions

• One Definition of Publicity
• Publicity is mention in the media. Organizations
  usually have little control over the message in
  the media, at least, not as they do in
  advertising. Regarding publicity, reporters and
  writers decide what will be said.
• One Definition of Sales
• Sales involves most or many of the following
  activities, including cultivating prospective
  buyers (or leads) in a market segment conveying
  the features, advantages and benefits of a
  product or service to the lead and closing the
  sale (or coming to agreement on pricing and
  services).

8
Basic Definitions

• Example
• "... if the circus is coming to town and you
  paint a sign saying 'Circus Coming to the
  Fairground Saturday', that's advertising. If you
  put the sign on the back of an elephant and walk
  it into town, that's promotion. If the elephant
  walks through the mayor's flower bed, that's
  publicity. And if you get the mayor to laugh
  about it, that's public relations." If the town's
  citizens go to the circus, you show them the many
  entertainment booths, explain how much fun
  they'll have spending money at the booths, answer
  their questions and ultimately, they spend a lot
  at the circus, that's sales.
• The story comes from the Reader's Digest, a
  quote found in "Promoting Issues and Ideas" by M.
  Booth and Associates, Inc. (Thanks to Jennifer M.
  Seher, participant in the CONSULTANTS_at_CHARITYCHANN
  EL.COM online discussion group.)

9
Marketing Basics

• The first order of business is to look around and
  analyze your environment this is called
  marketing analysis. Marketing analysis includes
  finding out -
• What groups of potential customers (or markets)
  exist
• What groups of customers we prefer to serve
  (target markets)
• What their needs are,
• What products or services we might develop for
  those needs
• How the customers might prefer to use the
  products and services,
• What our competitors are doing
• What pricing we should use
• How we should distribute products and services to
  our target markets.

10
Marketing Basics

• Marketing analysis begins with market research.
  Various methods of market research are used to
  find out information about markets, target
  markets and their needs, competitors, etc.
• Market research includes primary and secondary
  information.

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Basic research Oklahoma city, oklahoma (state),
and United states

• Educational Attainment
• Industry
• Occupations
• Income and Benefits
• Employment Status
• Land Area
• People per Square Mile
• Commuting to Work
• Travel Time to Work

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Educational Attainment Oklahoma City, Oklahoma,
and USA2005-2007 American Community Survey
3-year Estimates
13
industry oklahoma city, Oklahoma,
USASelected Economic Characteristics 2006U.S.
Census Bureau , Data Set 2006 Community
SurveySurvey American Community Survey
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occupation Oklahoma city, Oklahoma,
USASelected Economic Characteristics 2006U.S.
Census Bureau , Data Set 2006 Community
SurveySurvey American Community Survey
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Income and Benefits OKC, Oklahoma, and usa
selected social characteristics 2007Data Set
2007 American community survey, 1 year estimate
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Employment status OKC, Oklahoma, and usa
population 16 years or olderSelected economic
characteristics2006u.s. census bureau
17
Know Yourselfand your customer
18
Basics and Planning

• What media is most practical to use in terms of
  access and affordability?
• The amount spent on advertising is often based on
  the revenue expected from the product or service
  is the sales forecast.
• You can often find out a lot about your customers
  preferences just by utilizing some basic market
  research methods.
• Far too often, we think we know what our
  customers think and want because -- well, we just
  know, that's all. Wrong! Businesses can't be
  successful if they don't continue to meet the
  needs of their customers. Period. There should be
  few activities as important as finding out what
  our customers want for products and services.
  Fortunately, there are a variety of practical
  methods we can use to obtain feedback from
  customers.

19
Basics and Planning

• The methods we choose and how we use them depend
  on what type of feedback we want from customers,
  for example, to find out their needs in products
  and services, what they think about our products
  and services, etc.
• APICS (Chapter) Members
• Board members, instructors, Chapter members,
  students, etc. - Ask them about products and
  services we provide. Listen to complaints, these
  tell you what the membership doesnt want or
  like.
• Comment Cards
• Provide brief, half-page comment cards which they
  can answer basic questions such as Were you
  satisfied with our services? How could we provide
  the perfect services? Are there any services
  you'd like to see that don't exist yet?
•  
•  

20
Basics and Planning

• Competition
• What is our competition selling? Competitors are
  SCM (Supply Chain Management), ISM (Institute of
  Supply Management), CSCMP (Council of Supply
  Chain Professionals). Start coaching those around
  you to notice what's going on with your
  competition.
• Documentation and Records
• Notice what customers are buying and not buying.
  If you already know what customers are buying,
  etc., then is this written down somewhere? It
  should be, so you don't forget.
• Electronic Surveys
• You might hate answering these things, but plenty
  of people don't -- and will fill out surveys
  especially if they get something in return such
  as a chance for a free gift card.
•  

21
Viewing Habits of the american public

• In the 1960s, the average consumer allocated
  their time
• Watching one of four (4) main television
  channels.
• Reading the local newspaper
• Reading magazines
• Listening to one of eight (8) radio stations  
  
• In the 1970s, the average consumer
• Watched one of eight (8) television channels
•   Read the local newspaper
•    Read magazines
•   Listened to one of sixteen (16) radio
  stations
•    Began to use desktop and networked computers
  at work
•  

22
Viewing Habits of the american public

• In the 1980s, the average consumer
• Watched one of ten (10) major network channels,
  and twenty alternate cable channels, with the
  debut of Home Box Office (HBO)
• Read the local newspaper and alternate papers
  such as the Wall Street Journal.
• Viewing movies on a VCR.
• Listening to one of twenty four (24) radio
  broadcasts.
• Began to use desktop computers at home by Apple,
  followed by the PC Clones.
• In the 1990s, the average consumer
• Watched one of twelve (12) local network
  channels, and sixty alternate cable channels,
  with 2 to 6 home movie channels
• Viewed movies on the VCR, with access to video
  stores supplying a great variety of titles.
•  Enjoy the movies more frequently at Mega Theater
  complexes.
•  Read the newspaper and alternative papers.
•  Listening to one of twenty four (24) radio
  stations.
•  Use desktop computers, and the internet for
  business and pleasure at home.

23
Viewing Habits of the american public

• In the 2000s, the average consumer will
•  Watch one of twelve (12) local network channels,
  and eighty (80) alternate cable channels, with 2
  to 12 home movie channels
• View movies on the VCR, and DVD with access to
  video stores supplying a great variety of titles
  for both. Have direct TV by Satellite Dish,
  increasing diversity.
• Enjoy the movies at Mega Theater complexes.
• Read the newspaper and alternative papers.
• Listening to one of twenty four (24) radio
  stations.
• Increase their use desktop computers for business
  and pleasure at home with more than one computer
  per household. Use the Internet for purchases,
  business and entertainment. 

24
Is pricing appropriate?
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CPIM Classes Cost by ChapterAugust 2008
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Advertising Questions

• How can we maximize and/or maintain exposure of
  my target segment of consumers to my marketing
  information?
• How can we capture and maintain attention of our
  target consumers?
• How can we influence our target consumers to
  purchase our product or service?
• Are there factors which make Oklahoma City unique?

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People per Square mileU.S. Census Bureau
State and County QuickFacts-2000Puerto Vallarta
Information from http//en.wikipedia.org/wiki/puer
to_Vallarta,_Jalisco
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commuting to work OKC, Oklahoma, usa
population 16 years or olderSelected economic
characteristics2006u.s. census bureau
32
travel time to work Oklahoma city population
16 years or olderSelected economic
characteristics2006u.s. census bureau
33
Types of Advertising to consider

• Radio
• Television
• Magazines
• Newspapers
• Outdoor Advertising
• Mailings

34
We Chose to Look at.

• Print newspaper
• Outdoor advertising
• Bulletin
• Poster
• Junior Poster
• Bus
• Shelter
• Bench

35
Advertising - Print
Newspaper Advertising The Oklahoman Monday and
Tuesday Edition Full Page Zone
Number 1 Edmond 585.00 2 West 780.00
3 North 655.00 4 South 780.00 5 East
655.00 6 Norman 585.00 Plus cost of
color 4 color (discounted) Per Zone 260.00
2 color Per Zone 180.00 1
color Per Zone 120.00
36
Advertising - Print
Newspaper Advertising The Oklahoman Monday and
Tuesday Edition Full Page Full Page Full Run
(all zones) 3,825.00 Half Page Full Run (all
zones) 2,140.00 Plus cost of color 4
color 1435.00 2 color 1020.00
1 color 635.00
37
Advertising - Print
Newspaper Advertising The Oklahoman Sunday
Edition Full Page 4 color Full Page Full Run
(all zones)
23,000.00 Half Page Full Run (all
zones) 17,885.42
38
Advertising- Outdoor

• Briefly
• Bulletins
• Largest billboard w/varying sizes
• Poster
• Posters are the other common form of billboard
  advertising, located chiefly in commercial and
  industrial areas on primary and secondary
  arterial roads. Posters are a smaller format than
  bulletins and are viewed principally by residents
  and commuter traffic, with some pedestrian
  exposure.
• Junior Poster
• Usually found in inner city communities where
  large scale outdoor products don't reach. Junior
  Posters are generally not illuminated and are
  considered a great opportunity to reach urban
  neighborhoods.

39
Advertising- Outdoor

• Bus vary according to coverage
• full, side below windows, side covering windows,
  front, and back.
• Shelter
• Bench

40
Advertising- Bulletins

• What is a Bulletin?
• Bulletins are the largest standard-sized form of
  
  out-of-home advertising. Located on highly
  visible locations,
  such as expressways and primary
  arteries, they offer
  advertisers exposure from
  heavy traffic patterns. There
  are two types of
  bulletins, permanent and rotary. Permanent
  boards remain at one location for the contract
  term while rotary boards are moved every 60-90
  days.

41
Advertising- Bulletins

• Varying contract periods
• Promotions / discounts
• Charge to produce picture vinyl usually between
  1.95 to 2.50 per square ft.
• Vinyl usually lasts 2 years
• An installation fee applies - 275 - 350

42
Advertising- Bulletins

• Worksheet
• 6 month contract _at_ 1,200 per month 7,200
• 12 x 40 - 480 square feet -bulletin vinyl
  costs
• Production fee - 2.00 x 480 960.00
• Installation fee - 295.00
• Contract fee 7,200.00
• Vinyl cost 960.00
• Installation fee 295.00
• 8,455.00
• Total Costs 8,455.00
• DEC 12,000 to 60,000 per day
• DEC daily effective circulation

43
Advertising- Poster and Junior
What is a Poster? Posters are purchased in 30 day
increments called showings. Poster showings
provide a broad, simultaneous market reach that
can achieve instant market saturation and high
frequency where your customers live, work, and
play. Posters are extremely powerful for
launching new product campaigns, time sensitive
promotions, seasonal and special events.
What is a Junior Poster? Junior Posters are
smaller posters generally positioned closer to
street level to gain exposure to pedestrian
traffic. Also purchased in 30 day increments or
showings, located mainly on secondary roads
called arterials in urban areas. They may be
found available in areas where larger media
posters and not be permitted.
44
Advertising Junior Posters
Lamar Outdoor Advertising Ron Durham Junior
Posters 5 x 11 Proposed contract 12 months
of posters Cost per month of months
One-time Charge 6 600.00
12 900.00 First
Year Costs 600.00 x 12 7,200 900.00
8,100 DEC 3,500 to 13,500 per day DEC daily
effective circulation
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Advertising - Bus

• Signs
• Vinyl

46
Bus - Facts

• Each Metro Bus averages 245 miles of circulation
  each day!
• The Metro buses cover the entire market,
  including Edmond, Norman, Midwest City, etc
• Bus advertising is the only outdoor medium that
  can travel into areas of OKC where no other
  outdoor advertising exists.
• The average DEC (daily effective circulation) of
  one transit poster on one Metro bus is 22,300
  daily impressions.
• Each Metro bus posters is rotated to a new
  traffic audience on an average of every 90
  seconds. Additionally, each "moving billboards"
  rotates to a different route every day.

47
Bus - signs
Half-side Exterior Sign Monthly Unit Rate
599 Sign will cover the full length of the
drivers side of one bus.
Production Fee 352/Sign (one-time fee)
Kong Exterior Sign Monthly Unit Rate 399 Sign
will cover the middle of the drivers side of one
bus.
Production Fee 242/Sign (one-time fee)
Back Attack Exterior Sign Monthly Unit Rate
433 Sign will cover the back of bus.
Production Fee 575/Sign (one-time fee)
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Bus - signs
49
Bus - signs
Cost Comparison Kong Exterior Sign Monthly Unit
Rate - 399 Production Fee - 242 / Sign
1st Month 2nd Month 3rd Month 399 x 3
897 399 x 3 897 399 x 3 897 242 x 3
726 subtotal 1,623 897 897 Total 3,417

• Rate Details
• Rates represent space per sign only and are based
  on a 4 week billing period.
• A minimum of 3 signs for a 12 week period is
  required for this short term
• Signature Product rate.
• Production costs are not included.
• All above production costs include installation
  and removal of vinyl.

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Bus - signs
Cost Comparison Back Attack Exterior Sign
Monthly Unit Rate - 433 Production Fee - 575 /
Sign
1st Month 2nd Month 3rd Month 433 x 3
1,299 433 x 3 1,299 433 x 3 1,299 575
x 3 1,725 subtotal 3,024 1,299
1,299 Total 5,622
Rate Details Rates represent space per sign only
and are based on a 4 week billing period. A
minimum of 3 signs for a 12 week period is
required for this short term Signature Product
rate. Production costs are not included. All
above production costs include installation and
removal of vinyl.
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Bus - Vinyl
Cost Comparison Half-Wrap Monthly Unit Rate -
1,210 Production Fee - 4,235 / Bus
1st Month 2nd Month 3rd Month 1,210 x 3
3.630 1,210 x 3 3,630 1,210 x 3
3,630 4,235 x 3 12,705 subtotal 16,335
3,630 3,630 Total 23,595
Rate Details Rates represent space per sign only
and are based on a 4 week billing period. A
minimum of 3 signs for a 12 week period is
required for this short term Signature Product
rate. Production costs are not included. All
above production costs include installation and
removal of vinyl.
52
Bus - Vinyl
Cost Comparison Three Quarter Wrap Monthly Unit
Rate - 1,815 Production Fee - 5324 /Bus
1st Month 2nd Month 3rd Month 1,815 x 3
5,445 1,815 x 3 5,445 1,815 x 3
5,445 5,324 x 3 15,972 subtotal 21,417
5,445 5,445 Total 32,307

• Rate Details
• Rates represent space per sign only and are based
  on a 4 week billing period.
• A minimum of 3 signs for a 12 week period is
  required for this short term
• Signature Product rate.
• Production costs are not included.
• All above production costs include installation
  and removal of vinyl.

53
Bus - Vinyl
Cost Comparison Back Attack Exterior Sign
Monthly Unit Rate - 514 Production Fee - 575 /
Bus
1st Month 2nd Month 3rd Month 514 x 3
1,542 514 x 3 1,542 514 x 3 1,542 575
x 3 1,725 subtotal 3,267 1,542
1,542 Total 6,351
Rate Details Rates represent space per sign only
and are based on a 4 week billing period. A
minimum of 3 signs for a 12 week period is
required for this short term Signature Product
rate. Production costs are not included. All
above production costs include installation and
removal of vinyl.
54
Bus sign and Vinyl comparison
1st Month 2nd/3rd Month
Total Half-side Exterior Sign 2,853
1,797 6,447 Kong
Exterior Sign 1,623 897
3,417 Back Attack Exterior Sign 3,024
1,299
5,622 Half-Wrap Vinyl 16,335 3,630 23,595
Three Quarter Wrap Vinyl 21,417 5,445
32,307 Back Attack Exterior Vinyl 3,267 1,542
6,351
Rate Details Rates represent space per sign only
and are based on a 4 week billing period. A
minimum of 3 signs for a 12 week period is
required for this short term Signature Product
rate. Production costs are not included. All
above production costs include installation and
removal of vinyl.
55
Bus Bulletin and Junior comparison
1 - Bulletin 12 x 40

Viewed by
12,000 to 65,000 people a day 6 month Contract

6 month Cost - 8,455.0
12 month Cost - 16,910 6 -
Junior Poster 5 x 11

Viewed by 3,500 to
13,500 people a day 12 month Contract


Total Cost 8,100.00

12
month Cost - 8,100 3 - Bus Sign


Viewed by 22,500 people a day 3 month
Contract

Total Cost
3,417.00

12 month Cost
13,668
56
We chose.

• Shotgun approach
• Outdoor Advertising Posters (beginning in 2009)
• Brochures / Flyers (beginning in 2009)
• emailBlasts for APICS classes, PDMs, seminars,
  etc. (started in 2008)
• Targeted approach
• Focused Direct Selling (beginning in 2009)
• Trade newspapers (beginning in 2009)
• Chapter website (started in 2008)

57
In conclusion.
Typically, consumers spend little time
researching purchase decisions so keeping your
product or service out front positions it in
consumers recall set. When you expose your
product or service to a greater number of
potential consumers, the greater the chance to
increase your customer base. It costs six times
more to acquire a new customer compared to
keeping a current customer. Still the BEST way
to find out what your customers want is to ask
them!
So, whichever way you choose to market APICS
Get the Word Out!
58
References

• William Schneider and Richard Shiffrin,
  Controlled and Automatic Human Information
  Processing I. Detection, Search, and Attention,
  Psychology Review, January 1977, pp. 1-66 and
  Richard Shiffrin and William Schneider,
  Controlled and Automatic Human Information
  Processing II. Perceptual Learning, Automatic
  Attending, and a General Theory, Psychology
  Review, March 1977, pp. 127-90.
• Daniel Kahneman and Anne Treisman, Changing
  Views of Attention and Automaticity, in
  Varieties of Attention, ed. R. Parasuraman and
  D.R. Davies (New York Academic Press, 1984),
  pp.29-61 and John G. Lynch, Jr., and Thomas K.
  Snull, Memory and Attention Factors in Consumer
  Choice Concepts and Research Methods, Journal
  of Consumer Research , September 1982, pp. 18-37.
  
• Basic Definitions story comes from the Reader's
  Digest, a quote found in "Promoting Issues and
  Ideas" by M. Booth and Associates, Inc. (Thanks
  to Jennifer M. Seher, participant in the
  CONSULTANTS_at_CHARITYCHANNEL.COM online discussion
  group.)

59
Internet Links

• Lindmark
• Please Click Here to View e-Pitch 41443If you
  are unable to view the e-Pitch from the link
  above, please copy and paste the following link
  on a browser.http//www.billboardplanet.com/ePitc
  hL.asp?PitchID41443P2082627332SePitchReceipt
  False
• Landmark
• Link(s) Spotted MapIf the link above does not
  work, copy and paste the following link into your
  browser http//maps.lamar.com//PrintSpottedMap.a
  spx?ProposalID1000440

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Thank you! Muchas gracias!
61
Exposure to Information

• Although not a part of cognition in a strict
  sense, exposure to information is critically
  important for consumers interpretation
  processes. Consumers are exposed to information
  in their environment, including marketing
  strategies, primarily through their own
  behaviors. Thus we can distinguish between two
  types of exposure to marketing information
  purposive or intentional exposure and random or
  accidental exposure.
• Consumers are exposed to some marketing
  information because of their own intentional,
  goal-directed search behavior. Typically,
  consumers search for relevant marketing
  information to help solve a purchasing problem.
• Most investigations of consumer search behavior
  have found levels of intentional exposure to
  marketing information rather low. Before making a
  purchase, most consumers visit only one or two
  retail stores and consult very few salespersons
  and external sources of information. This limited
  search may be surprising until you realize most
  consumers already have substantial
  product-related knowledge, meanings, and beliefs
  stored in their memories. If they feel confident
  in their in their existing knowledge, or if they
  feel little involvement with the decision (low
  self-relevance), consumers have little motivation
  to engage in extensive search for information.

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Exposure to Information

• Marketing information is everywhere in the
  consumer-oriented environments of most
  industrialized countries. In the United States,
  as an example, advertisements for products and
  services are found in magazines and newspapers,
  on radio and TV, and on bus placards and bus-stop
  shelters and they are increasing. Between 1967
  and 1982, the total number of ads doubled and by
  1997 that number doubled again. Billboards and
  signs promoting products and services, and retail
  stores are found along most highways. Stores
  contain a great deal of marketing information,
  including signs, point-of-purchase (POP)
  displays, and advertisements, in addition to
  information on packages. Consumers also receive
  product information from friends and relatives,
  from salespersons, and occasionally even from
  strangers. Of course, the Internet is a huge
  source of information.
• Typically, consumers are not exposed to these
  types of marketing information through
  intentional search behavior. Instead, most
  exposures are random or semi-random events that
  occur as consumers move through their
  environments and accidently come into contact
  with marketing information. Consumers are seldom
  looking for product or service information while
  watching TV, and some stores encourage browsing
  by developing environments leading consumers
  through aisles and maximizing the amount of time
  in the store.

63
Marketing Basics 2

• This leads into four aspects of how consumers
  interpret advertising information
• Interpretation involves interactions between
  knowledge in memory and information from the
  environment. The incoming environmental
  information activates relevant knowledge in
  memory.
• The activated knowledge influences which
  information consumers attend to and how they
  comprehend its meaning.
• Because their cognitive systems have a limited
  capacity, consumers can consciously attend to and
  comprehend only a small amounts of information at
  a time.

64
Marketing Basics 2

• Much attention and comprehension processing
  occurs quickly and automatically with little or
  no conscious awareness. For instance, simple
  interpretations such as recognizing a familiar
  product (such as a Coca-Cola bottle) occur
  automatically and virtually instantly upon
  exposure, without any conscious awareness of the
  comprehension process. Automatic processing has
  the obvious advantage of keeping our limited
  cognitive capacity free for unfamiliar
  interpretation tasks that do require conscious
  thought.