"Knowledge is power, however, it becomes wisdom only after it has been put to practical use."
Francis Bacon

Tuesday, February 9, 2010

Marketing in a Changing Industry

Waleed Ashoo


There has been a significant increase in the number of print providers calling on marketing representatives according to an InfoTrends study. The study just confirms what we all in the industry have observed over the past three years. The world of print has changed and there is no going back.

In addition to streamlining operations, traditional shops are changing strategic direction. No longer focusing on selling “print on paper,” they are modifying their organizations and redefining their markets to sell services that may or may not include print. As they navigate this new endeavor, they are up against a variety of competitors, many who are outside of the print industry.

Now, they have to not only “use as many resources as possible to gather G2 about their competitors...they have to understand where key competitors or potential competitors are in their digital migration strategy,” according to Cary Sherburne, author of Digital Paths to Profit. Sherburne also noted that they should be looking at nontraditional competitors such as prepress and design agencies and mailing houses. Traditional PR firms and advertising agencies adding services or partnering with other vendors should also be included in their competitive analysis. And, as they monitor the competition, “they need to keep a close eye on the client and the ultimate customer–the end user as well.”

Today’s customers are more technology savvy. They are multi-taskers who want business partners that bring fully integrated solutions to the table. They want problem solvers versus print brokers or account executives. Some may want to know how you plan to do it, others just want it done. The common thread: they want it all: A flexible solution that, more often than not, includes customization. They want an open line of communications with their customer. They want the ability to track results. They want to test different scenarios to see which is more effective before making an investment. They want it personalized and interactive. And, they want it now.

Marketing to this group can be a challenge for those individuals used to selling commodity printing. The selling cycle is typically longer and it is build on the foundation of a relationship that is established and then nurtured. Marketing efforts include learning everything possible about the customer’s or potential customer’s business strategy, as well as gathering as much G2 as possible about their customer’s business strategies, competitors and industry issues.

Some marketers are effectively using existing sell/buy relationships as a springboard to get the customer to invest in a customized solution. Since they are building on an existing relationship, they have an established history with the customer and the customer is less likely to switch vendors.

According to Dr. Michael LeBoeuf, professor of management at the University of New Orleans and author of How to Win Customers and Keep Them for Life, “The average business spends six times more to attract new customers than it does to keep old ones. Yet, in most cases, customer loyalty is worth ten times the price of a single purchase.”

Those that clearly understand the value of digital and what it brings to the table and can include it in their repertoire of services will be more successful in converting existing customers from “viewing them as a printer vendor to viewing them as a solutions provider,” according to LeBoeuf.

Sometimes–under the best of circumstances– that is even difficult. “There are some customers that view digital as a commodity,” said Danny Vigil, sales representative at LithExcel Communications Services Provider. “We may never be able to change their minds; however, we can educate them by providing information as to the value of digital solutions and by continuing to showcase successful integrated digital solutions.”

“On our personal transition, regular training has helped us to better understand this new role. It requires a well planned and coordinated effort to meet with the CEO, CFO, president or vice president of a company when you’re used to calling on buyers and purchasing agents. Often, you have only one chance to convince them of the value of your service, so you must be totally prepared,” according to Vigil.

Other representatives making the transition, echo Vigil’s observations. “The market has changed, requiring everyone to take another look at their marketing efforts and at how they communicate with their target audience. The value is no longer in the print or the quality of the print, but in what is “printed” on the page,” said Aaron Flure, digital marketing representative at LithExcel. “Fortunately, I did not have an extensive print background to overcome; however, some long-time customers still think of us as a print company. We have a good solid history as a print company and that’s not bad; we have to build on the customer’s experiences and then demonstrate how we’ve made a successful transition and how are positioned to help them with fully integrated marketing solutions. Solutions that may or may not include print.”

According to Eric Sheldon, a business development manager at LithExcel, the biggest challenge with applying digital technologies is assessing and evaluating customer marketing strategies. Traditional print sales representatives do not have a strong marketing or business development background and because of that, they may have a difficult time working with a customer to develop a fully integrated cross media marketing plan.” Sheldon also added, “The time line for selling digital solutions is longer. The process is more involved; it is added to, subtracted from, and modified as it evolves – that’s the beauty of digital. You have the opportunity to change and adjust the components to fit the audience and message before you commit valuable resources.”

Marketing in the changing environment can be a challenge. However, even seasoned marketers are facing challenges are the industry evolves. Everyone, including customers are experiencing a learning curve as they test the digital waters and explore the ins and outs of social media.

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