3 most dangerous trends facing businesses and what one can do about them.

Marketplace activity and social barriers that stand in the way of a company’s success.

3 Most Dangerous Trends Facing a Company Today

JayRay Consultants©2010

Researched and Produced by

JayRay

Consultants Inc.

Sponsored by:


Why we did this independent study?

Most companies across North America, are faced with the challenge of trying to hit a moving target – clients.

As a multiple-media information resource, we speak to people daily who are business owners, employees and stakeholders, who struggle to survive in their industry.

In an attempt to alleviate some of the struggles, we commissioned this study to investigate these trends. We are pleased to bring this

informative presentation to you!


Areas Covered

The latest trends on “reaching customers”

Exposing the 3 most dangerous trends facing a company

Discovering the combination to the lock – “Today’s secret to have a thriving business”

CURRENT LANDSCAPEThe


Not very optimistic... But very real!

The failure rate of businesses is 96% within their first ten years. 80% of those fail in the first 2 years.

Nearly 600,000 companies a year go out of business

65% of Canadians believe it is still a recession and will demonstrate restraints in buying behavior.

The USA, Mexico, and Canada are losing jobs to China. (1.13 million managers are unemployed in the US – 3 times the amount of 2007)

Canadian household debt rose to $1.3 trillion in 2008; that works out to close to $40,000 for each man, woman, and child.

Source: U.S. Department of Commerce; U.S. Bureau of Labor Statistics; Chet Holmes International; Nielsen Global Consumer Confidence Index 2010; AMR Research , May 29, 2008; Certified General Accountants Association of Canada (CGAAC); Internet Advertising Revenue Report, PricewaterhouseCoopers LLP.


Many will be asking...

“How do we rise above all the noise?”

2002 2003 2004 2005 2006 2007 2008 $-

$5.00

$10.00

$15.00

$20.00

$25.00

$6.01 $7.26

$9.62 $12.50

$16.80

$21.20

$23.44

Internet Ad Spend (in Billions)

Source: The Nielsen Corporation; Internet Advertising Revenue Report, PricewaterhouseCoopers LLP




“How do we get to our target market?”

2002 2003 2004 2005 2006 2007 2008 $-

$5.00

$10.00

$15.00

$20.00

$25.00

$6.01 $7.26

$9.62 $12.50

$16.80

$21.20

$23.44

Internet Ad Spend (in Billions)







Text message ads on mobile phones are the least trusted paid advertising channel, winning the confidence of 24% of consumers globally.

83% of Americans say they have a cell phone





“How do we educate people with our offer?”


“It’s never been more critical to be highly efficient and effective to reach consumers where they spend much of their time: online, on mobile devices, gaming and watching TV.”





“How do we educate people with our offer?”

“Will customers be able to pay for our offer?”



Three Most Dangerous Trends

1. A distracted society

2. Trust in messaging

3. The cost to reach a customer

WE’RE A DISTRACTED SOCIETY

Trend #1


Trying to get attention?

Source: Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook Engineering; The Nielsen Company; Radicati Group




28% of the TV audience use a DVR to avoid commercials

57% of Americans use TV and internet simultaneously at least once a month for 2.5+ hours

44% of people polled said they were regularly on line at work

One in every 11 online minutes get spent on social network sites like Facebook.














One in every11 online minutes get spent on social network sites like Facebook.


Facebook’s Growth Chart and Goal







http://www.facebook.com/photo.php?op=1&view=all&subj=409881258919&aid=-1&pid=4506694&id=9445547199&oid=409881258919

http://www.facebook.com/photo.php?op=1&view=all&subj=409881258919&aid=-1&pid=4506694&id=9445547199&oid=409881258919


Can’t be heard over the noise?

Source: Irene Rosenfeld, Chairman and CEO of Kraft Foods at the Nielsen’s Consumer Conference; Pew Research Center Biennial News Consumption Survey 2008; Princeton Survey Research Associates International; Facebook for business, HubSpot Blog; CTIA 2009



There are more than 300 million mobile subscribers in North America, representing approximately 90% of all adults (20% have both the device and data plan to access the mobile Web).

In the US, over 84 Billion text messages are sent in a month… over 1 Trillion in 2009.

“Average human today is inundated with over 2000 outbound marketing interruptions per day”

“People are consuming 350% more data than thirty years ago… (reading 100,000 more words a day outside of work)”















Yes No Did Not Answer0%

10%

20%

30%

40%

50%

60%

70%

35%

64%

1%

61%

38%

1%

68%

32%

0%

1995 2006 2008

Received an emailed news story from a friend








Yes No Did Not Answer0%

10%

20%

30%

40%

50%

60%

70%

35%

64%

1%

61%

38%

1%

68%

32%

0%

1995 2006 2008

Received an emailed news story from a friend


PEOPLE JUST DON’T TRUST

Trend #2


People are just not sure

Source: AC Nielsen Three Screen Report; Nielsen Global Survey; B2B Sales Lead Generation, Marketing Profs, Survey 2008



63% of people trust ads in Newspapers in 2007 vs 61% in 2009

Americans that regularly watch nightly network news has fallen by half.

Fewer than half of the companies polled in 2008, use Web 2.0 techniques - Blogging, Podcasts or Social Media.















59% of iPhone moms let their kids use their phone

72% of cellphone owners ages 12 to 17 are texters while only 18% of cellphone owners ages 40 to 49 are texters.

A videogame download or new ring tone can cost a user several dollars, charged to his phone bill.

Parents feel taken advantage of

Source: Greystripe Mobile Advertising Insights Report:iPhone Mom 2009; Forbes.com article: An 'Incredible' Marketing Ploy
























“It is especially easy for children…to miss the small print in the lower corner of a commercial message stating that by ordering these 'extraordinarily inexpensive' services they commit to a standing, chargeable subscription”



Traditional marketing focus on….

Finding customers using techniques that are poorly

targeted and interrupt people:– Outbound cold-calling– Print advertising– T.V. advertising– Junk mail– Spam– Trade shows

Source: Facebook for business, HubSpot Blog: Rick Burnes, 2008

COSTS TO REACH CUSTOMERS

Trend #3


“Less bang for the buck”

Soft Drink sales down 2.1% in ’09 (after a decline of 3% in ’08)

Advertising during the Olympics has increased by 40% in 10 years (1996 to 2006)

Pharmaceutical promoting in the US has increased from $11.4B to $29.9B between 1995 and 2006

20% of US and British doctors now refuse to see any sales representatives.

Source: Centaur Communications Ltd ; PricewaterhouseCoopers LLP; Nielsen Monitor-Plus 2008


More advertisers = More competition

“Pay-per-click ads are being driven up in costs as the demand for online ad space increases.”[$10.9B annual spend in “search” by companies in US]

Source: PricewaterhouseCoopers LLP and Interactive Advertising Bureau (IAB); Pacific Bell study 2009; Implied by Design LLC

* SEARCH is defined as: fees advertisers pay Internet companies to list and/or link their company site domain name to a specific search word or phrase

It now costs 3X more in 2008 than it did in 1992 to reach perspective buyers.


Yes... the playing field looks dismal

However, there is asecret combinationto achieving

immediateresults for your

business.


But more importantly ...

There will be a positive impact in people’s lives!


The combination to “Thrive”

Source: dotmanagement.com.ar



1 Get the ‘Right’ Information





2 Educate (Think: What have I ‘Left’ them with?)

What is the ‘Right’ Way?Source: dotmanagement.com.ar




2 Educate (Think: What have I ‘Left’ them with?)

3 What is the ‘Right’ Way?


‘RIGHT’ INFORMATION1st code to the Combination


Climb the Wisdom Ladder

HOW? Your company solves

problems and has information that makes people’s lives better–financially, emotionally, physically. What are they?

People buy benefits not features. List yours!

"People don't want to be sold! People want to buy!” How can you help them?

People want solutions. Do you know what problems they have?

Source: Jeffrey Gitomer's Little Red Book of Sales Answers; Adrian Mullan ‘s Understanding Features and Benefits; Dr. A. J. Schuler - How to Build Wisdom and Prosper in an “Information Age”

Bottom Step: DATARaw counts of things, that have no meaning

Second Step: INFORMATIONPut data together related to a subject toyield information

Third Step: KNOWLEDGEInterpret and understand the bodyof information

Forth Step: WISDOMSynthesize various streams of knowledge to make informed judgments


Know what people trust

Consumer Trust in Advertising by Channel

12+% increase in consumer trust

Source: Global Consumer Trust in Advertising by Channel 2009 - Nielsen Global Online Consumer Survey

“Persons aged 30-34 are uniquely prone to trusting online advertising of different forms.”


Help others... Help you

90% of corporate executives surveyed felt a Strategic Alliance or Joint Venture with another company was absolutely essential to maintain a competitive edge.

The number of business alliances is growing by 20% a year with 10,000 new alliances being reported in the last 12 months alone

Businesses anticipate strategic alliances accounted for 25% of all revenues.Source: 2005 Commonwealth Alliance Program (CAP), 2002

enterprise.com survey; 2001 Abraham Publishing; Trendsetter Barometer PwC



Source: 2005 Commonwealth Alliance Program (CAP), 2002 enterprise.com survey; 2001 Abraham Publishing; Trendsetter Barometer PwC







Apple-Motorola-IBM PowerPC

Verizon-Vodafone = Verizon Wireless

Microsoft -Yahoo









Microsoft -Yahoo









Microsoft -Yahoo

EDUCATE2nd code to the Combination


Share your Information On-line

Source: Global Consumer Trust in Advertising by Channel2009 - Nielsen Global Online Consumer Survey

• If advertisers—especially those who are significantly underutilizing the medium and sticking with what is in their comfort zone—dedicated a “fair share” of ad expenditures based on this simple share-of-mind analysis, Internet ad revenues should be roughly 20% greater.

• 67% of people surveyed recognize the value of advertising in the basic media model of underwriting low cost and free content.

A way to get more than you bargained for!


It’s all about them... not You!

Source: B2B Sales Lead Generation, Marketing Profs, 2008; Adam Berkowitz, CEO of ID Society, Inc.; Rick Burnes Blog, “Inbound Marketing & the Next Phase of Marketing on the Web”

"The key is for advertisers to use and evolve the dynamic properties of the internet to attract customers, and develop relationships with them in an engaging and compelling manner to keep them coming back and spreading the word to their peers."

Push your message >>> OutboundGive them what they

want>>> Go Inbound!


Facts about inbound marketing

It Costs Less

Better Targeting

It's an Investment, Not an Ongoing Expense Source: Rick Burnes Blog, Inbound Marketing & the Next Phase of

Marketing on the Web


20 Year Coincidence?

Source: 2010 State of Inbound Marketing Study, Mike Volpe, HubSpot Blog; Rick Burnes, Inbound Marketing & the Next Phase of Marketing on the Web






?Source: 2010 State of Inbound Marketing Study, Mike Volpe, HubSpot Blog; Rick Burnes, Inbound Marketing & the Next Phase of Marketing on the Web


Average Cost per Lead



Inbound Marketing channels deliver 60% less per lead costs than outbound channels


Share THEIR stories with Others

Effectively integrate user-generated content into emails

Sephora cosmetics shares the results of votes and gives thanks

wisteria.com shares a note from FB fans in an email marketing campaign

Source: “Chief Marketer” Penton Media publication

The number one reason, 55% of people surveyed, post content on blogs, websites and message boards, is: “I used the product and liked it.”

THE ‘RIGHT’ WAY3rd code to the Combination


But what is effective?

Source: Forrester Research 2008; Newspaper media.com; Ferris Research; Neil Bhattacharyya, an ear, nose, and throat surgeon at Brigham and Women's Hospital in Boston, Massachusetts




Newspaper advertising rates GREW an average of 18% between 2005 and 2007.




Newspaper advertising rates GREW an average of 18% between 2005 and 2007.

In 2008, it was calculated that people wasted 21 hours per year deleting e-mails, compared to 2.2 hours a year in 2000.







Multi-sensory, educational, entertaining informationGive them something to remember you or your company by. They will be grateful and you will create a longer lasting impression.

"We know there's a link between smell and memory"


Give people what they want

Source: The Nielsen Company; Harvard Business Review Article

“Advertising as an anti-recession tool… Ad budgets should be related to the company's goals instead of to last year's sales or to next year's promises”


Give people what they want

TRY A Little APPRECIATION “Thank You” gifts

Saving Coupons Giveaways

Their Opinion Heard Run a Contest… use their

creations or ideas Survey… listen to what they

think

Their Choice to Engage Twitter, Facebook – opt-in Mobile Message – opt-in

AND A Little EDUCATION Be guest on a radio

show Take part in a training

course as an authority on a subject.

Share via Facebook and Blogs … ask for people’s permission and feedback

Create special reports and white papers.

Source: The Nielsen Company; Harvard Business Review Article


Use TV Effectively

Source: Scarborough Research, Scarborough USA+ Study, Release 1 2009; The Nielsen Company; PlaceVine 2009; Inc. Magazine


Use TV Effectively

are you an Upstart Brand? Get BIG! Networks are looking for non-competitive brands to create incremental revenue.


CereTom [a product placed on the TV show “ER”] experienced a 60% uptick in website traffic and received 10 direct inquiries from hospital reps regarding the $330,000 device, when their average number of inquiries was about two to three calls per month.


Use TV Effectively

are you a Large brand? Get in Early!Before a show or personality is well-known, get in at the ground floor of a production.


Ponds was the sole presenting sponsor of “The Starter Wife”, with normal commercial breaks filled with real life stories of women who personified the ‘Ponds’ brand.




Use TV Effectively

are you a Large brand? Get in Early!Before a show or personality is well-known, get in at the ground floor of a production.


Quality product placement in television boosts brand awareness to 57.5% when combined with an ad.



Ponds was the sole presenting sponsor of “The Starter Wife”, with normal commercial breaks filled with real life stories of women who personified the ‘Ponds’ brand.


Use TV Effectively


Example: “Top Chef” in March of 2008 was the #1 rated food show.

So what, right?What is the value for a company not in the food

industry?Bravo Network ranks above all network and cable

programmers for: In-program placement brand recall (63% vs. others at 46%) Brand opinion (26% vs. others at 12%)


Be in two places at once

Source: Harris Interactive Inc. “Radio and the Internet” 2007; Other lines of Enquiry






Campaigns which use both media have the opportunity to connect with consumers in multiple ways.





On a daily basis, radio and the Internet together reach about 83% of the 18-54 population

WHAT WILL THIS COMBINATION DO FOR YOU?

Information. Education. Right Way


Help you reach your goals

Make meaningful connections to customers, so they think about the value brought to them.

Grow a database of names for re-marketing and staying in touch with them.

Strengthen your brand as a leader in its industry.


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3 most dangerous trends facing businesses and what one can do about them.

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