Tag Archives: marketing

Food For Thought: Businesses Need a Marketing Plan

Life is a series of $64,000 questions. Here is one for your scrutiny: “Can you sell steak to a vegan?” Try this one: “Does Your Business Really Need a Marketing Plan?”

Think about this. No matter what it is, things function better when they are planned. If a course of action is ineffective, correcting it is navigable because options are anticipated and already planned — introducing effective solutions negate potential business setbacks.

A formal marketing plan is a smart move because it can prevent wasting valuable dollars chasing the wrong customers with the wrong message. Statistics reveal that around one-half of small businesses do not have a formal marketing plan. Careful attention to marketing can be critical to your business’ success.

We in the creative field will hammer clients senseless with the fact that business plans aren’t as important because they are static. Business plans are goals and objectives: “This is what we want to do in this particular market.” It assumes that variables will not factor into the growth of the business. Well, that’s wrong because every day there’s always a dog waiting to pee on your pants leg. On the other hand, marketing plans are organic and flexible.

Thus, a business owners attitude becomes, “I will achieve my goal, as adjustments require.” Small businesses survive if they can advertise to consumers that will likely purchase a brand and create revenue. This doesn’t happen by accident. A good creative agency researches casual factors of market penetration. It should combine a strategy statement with a solution-laden marketing plan. For us, it’s an art form, not pure chance.

Every business can benefit from a formal marketing plan in the following ways: Marketing plans force intentionality; Clear brand messaging; Measurable results. Data is compiled regarding marketing results, weighing the benefits of multi-layered marketing and advertising. Marketing plans expose the “good,” the bad,” and “the ugly.” They are without personality and emotion, yet give insight, and direction regarding market penetration and growth. Informed decision making.

As a business grows, marketing plans are useful in measuring staff performance and is the common denominator when it comes to who should be promoted, as well as what strategies need implementing.The mistake business make is to go for what’s popular instead of what works. If you own or manage a business, remember, waste is avoidable. Marketing plans are conduits to success because they are preemptive.

Bernard Alexander McNealy, President

CDM Digital Advertising Agency LLC

http://www.cdm-digital.com

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New Beginnings:   A Father’s Day Thank you

Like many black men, I grew up without my father in the home. I never resented him, or questioned why he was absent from my life. It was a fact of life and I accepted it as such.

My mother supplied several dozen reasons (daily it seems) as to why they had divorced. I loved my mother. But although she was endearing, she was a difficult character tat times. So as a kid I packed a sandwich bag many a day and headed for the railroad. I was going to get away from that woman and live a hobo’s life. From the way she blistered my ears blasting me verbally, I think I understand one the reasons Dad headed for the hills.

Was that the real justification? Some things provide their own rationale, so in the end, it doesn’t matter. I had strong men in life to help through hurdles and pitfalls. If I have any worth as a man today, it is because of the men God placed in my life.

My older brother Sammie was a constant morale force.  Even while we were kids, he taught me to be respectful of women. Sammie was wise and cool. When I had my first foray into interracial dating (a beautiful red-haired Irish-American girl) and it went sour, Sammie helped me to deal with the pain of rejection. You see, my would-be girlfriend’s father was a Boston cop; as were two of her older brothers.  I was unceremoniously shown the door.  

Sammie had a lot of Italian-American friends and one was a ‘made man.’  He didn’t shoot me when I met his niece and my heart raced. Uncle Vito said, “You boys are  part Sicilian.”  That only meant he was accepting and knew the young heart. That particular uncle was infamous to law enforcement, but besides protecting us from less understanding folks, he taught me that all things pass away with time. Vito said: “Enjoy life, kid because your tomorrow may not get here.”  Vito treated his wife well. I remember him as being a hell of a dresser. Sammie took after him because my brother dressed with style. Here’s the point, Vito was a strong man who showed us how to believe in ourselves. Fathers you see, are mentors and encourage you to excel.  

My grandfather, Sherman taught me to appreciate the gift of perseverance. Of course, he was there to straighten me out when I steered off course. I remember a week before his death, Grand-daddy Sherman called us from Augusta. I spoke to him briefly, but Sammie had the phone more than me. I honestly believe that he made Sammie promise to watch out for me and keep my tail out of trouble. Try as I might, my big brother always pulled me out of whatever crap I brought on myself.

My uncles James and Robert (RD) influenced me in much the same was as ‘Uncle Vito’ and my older brother.  James taught me martial arts – Robert taught me how to play baseball and football. Everything they knew about both, Sherman taught them.

For the last ten years of his life, Dad and I had a very strong relationship – an unbreakable bond. I loved the man I learned he was. He was a college graduate, served in the Korea War, later was a business man. Dad took me to task about some less a less than appreciate attitude I had about our country. He was a fighter and even killed people in war. He didn’t have regrets about it because he was a product of his father and time – a real man.  

Lately, several things happened to me that has proven to be deflating.  I remember the most valuable lesson a young man can learn as he grows into adulthood: “Don’t give up – get off the ground. Plant your feet — turn around and kick ass.”

I’m not a young man anymore. It’s time to listen to those voices and act.

All of the men that served as father figures, as a guide,  mentors, teachers, and spiritual forces and my birth father have died. I remain to remember: “Live life…avoid trouble…appreciate your gifts… tomorrow is not promised… don’t give up. Plant my feet…”

And I thank them all.

Catch you later,

 

Bernard A. McNealy, President 

Carson Dunn Media Advertising, Inc.

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WEIGHING OPTIONS: Billing For What We’re Worth

A Sense of Worth

Ages ago, I wrote a blog called, “Trumpet Over The Horizon.” That article dealt with my sincere belief that clients want agencies to charge realistic, with prices for services. I propose to know clients a capped mount for creative services (i.e. creative director, art director, copywriting fees, etc.) . The primary fee would be joined from generating and placement of ads, an amount not excessive of than 12%. By tradition, agencies are paid 15% of place ads idea was for the 3% differential to replace back into advertising. I wanted to benefit the client.

Here is the major problem with my former hypothesis: Advertising agencies put up with more than crap than people outside of agencies know. Accounts can be a headache simply because a client is demanding. So it doesn’t matter what I discount because it’s never enough to please. The resolution for me is to bill for the work that we do at the prevailing rates. It may sound expensive, but that’s the way it is. We are a creative agency, we are very good at we do, and we want to do it pay for it.

Take a look at what is happening nationwide. In New York City, where things are admittedly higher, senior digital executives bill clients an average approximating $350 an hour. Conservatively, creators performing similar work at traditional agencies on Madison Avenue bill at $700 per hour. Where based in Los Angeles, and things in Adland is no different. We worked our asses off and quite frankly, when clients refused to acknowledge what we are doing what is to enhance their business, it rankles.

I’m not making this up. A 109-page report published by the authoritative 4A’s reflected contains a list of the most agencies of all sizes in 2011. These figures regarding hourly rates billed by agencies is published the report. The survey is an update of a labor-billing study conducted three years ago. The report collected data from positions such as account management, creative, analytics, digital, media services and talent management. Having been reported I noticed that Los Angeles and New York, and not to disparate in charges. The Midwest probably is more, but not by much. I think the point is that we work hard for what we do. Agencies of all sizes are filled with people who are immensely talented in advertising and public relations. Our brains are taxed, we often work past out boundaries of times and learning to give the best possible product to a client. Clients should be appreciative of that – often they aren’t.

Let me give you an example. Perhaps this is hypothetical. An agency is contacted by a startup company. The client company wants logos, graphics, web content written, brochures, and other collaterals, in addition to the development and placement of ads in newspapers and magazines for its products.  To me this is a full marketing plan, and I told him so. Before, we proceeded with the work, and after three clients meetings of three hours duration, I drafted a letter of intent. The letter of intent denotes my agencies obligations to the client. It is an offer and acceptance at common law. Most people understand this. This client wanted us to partake in emergency work that would’ve taken up more than twenty hours using a team of five. I told this client as tactful as possible that they had not acknowledged the letter of intent. I cautioned them that if we did as they asked, our agency would have engaged in substantial performance – enforceable contractually. This client counter proposed essentially saying that they reserved right to pay us only if satisfied with our work. Payment would be ninety days later. And, assuming that they retained us as their agency, our monthly fee would be paid ninety days after it became due.

Quite honestly, I’m not unfamiliar with clients who have abusive, bullying, attitudes, but this joker took the brass ring. We received letters from him wherein he changed the company’s plans, blaming us for the changes in rejecting the cursive work we did for them. I did not laugh because this was not funny, but a little sad.

Clients like this should be billed for the full amount of services provided. I’m not afraid to do this because as a matter of principle.

 Here is the upshot. Someone performing work under a contract can invoke the common law rule of substantial performance and charge for the reasonable value of your services or, “quantum merit.” I acted as a creative director on the client projects. My billing rate is no different than that digital creative in New York, or $300 per hour. My art director and graphics department bills at $160 an hour, and my copywriters bill at $150 an hour. Multiply that times 20 and you have sticker shock. But that is the nature of the business – we deserve every cent we charge. 

The new reality is a second sound of the trumpet over the horizon. Billing for what we are worth because we have mouth’s to feed. There is a controversy in the industry. Small agencies like mine tend to forgo billing. The larger agencies, not as reticent, you get stuck like a crazed vampire.

As an agency head, o must protect my stake in my business. Treat everyone fairly, do a great job, but expect the same to done for you. Some people neglect these principles, and issues develop.

Benchmarks are in place for a reason. Agencies often are treated worse than the maid working for the “help.” I do not pay myself $300 an hour. But the benchmark is equivalent, not only to the suggested retail price, but to our sense of worth. I don’t know it is going to be a backlash, but I know what we are worth. We are agency and will start acting like one, because billing is value based.

Bernard A McNealy, President/CEO

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With Every Pro is a Con: Social Media

In recent decades, society experienced a cultural paradigm shift in social interactions. This new, but prevalent approach is social media. While technology is at the height of its momentum, we have to remember that moderation is always key and with every pro is a con.

In the business world, social media has become the leading source of communication between a company and its audience. Due to recent inventions of social media sites such as Google +, Facebook, Tumblr, and Linkedin; many have become fixated on in its advantages, while deviating themselves away from reality. Yes, social media creates an exponential profit for companies, but it does have its limitations.

The most effective use of social media is to integrate its advantages with human interaction. We have to acknowledge its disadvantages and create preventative meaurements, in order to save valuable time, money, and credibility.

Cons

  • Customer Service:

Great customer service involves humans, not mechanical devices and tools. Customers appreciate a face to face interaction, instead of a tweet or a message.

  • Fraud:

With networking sites such as Twitter and Facebook readily available, It is now much easier to steal someones identity. Although this may not ruin an individual’s finances, it does ruin their image and credibility.

  • Criticism:

When a company creates a Yelp or Facebook profile, they are vulnerable to negative feedback, which may tarnish their credibility.

Pros

  • Establish a Brand:

Creating a company image then spreading word through Facebook, WordPress, and Twitter is a productive use of networking sites.

  • Conduct Research:

Tracking and listening to an audience’s likes and dislike enables a company to adjust their product and/or service.

  • Advertisement:

Profit driven sites (ie. Facebook) inevitably turn to advertisements to increase revenue. Nowadays, these sites filter an individual’s advertisement to their preferences. For example, if 20 something year old recent graduate frequently visits a clothing store’s profile page, apparel based advertisemnts are published on their home page.

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Trumpet Over The Horizon

Right now it is clear to me. As measured by resources Carson Dunn Media is not a top tier agency. We are second tier solely because of limitations imposed by this, however, in terms of talent, CDM is damn good and can be as good as it gets.

Somewhere in the fog of memory are the words of a story I once read. The story is about a warning, actually and more precisely, a warning not heeded. It went like this:

“Sunlight pushed through the purple shadows dawn, a new day had arrived. As always I stood on a rock in the meadow. A brook had swollen from the rain and rushed madly in a rocky channel. The current licked at my boots. I heard it. I’d heard the sound before. Somewhere on a hill, dirt and rocks moved and rolled down the hill. In the distant valley, a sound echoed. It became louder; the sound blaring over the horizon. It was a trumpet and it carried a warning. What bodes for me, I asked repeatedly to the wind. My question and voice got lost in it.”

I think I have the answer – the riddle is solved. If you don’t pay attention, you miss the music. In all situations, there is a choice. For me, there is a time to act.
For any creative agency business should be abundant – the economy’s leaking boat notwithstanding.

It is simple when you break it down. A business exists for two reasons: survival of the brand; and, growth in sales. Everyday the issue for me is determining why clients are not beating a path to our door. Maybe it should begin with a change in agency philosophy. As a creative agency Carson Dunn Media should explore a business’ needs, and then accommodate them. I am reminded that a wise man calls this channeling the conscience of a business.

Regardless, it is time to wake up. The right pricing structure can draw clients. Enough business can increase our agency’s profits. This is the trumpet an agency president must and heed. More profit has an added benefit: it causes continued viability and allows us to keep our best talent. Increased staff allows us to give better services.

I don’t know about other agencies, but developing and stretching our market capabilities and presence is exciting. Growth is a prospect worth pursuing. I want to build a successful creative business. If it means charging less – but valuing our services – I’m for it.

We have a buyer’s market. That does not mean Carson Dunn Media will refrain from accepting the 15% commission – no, we will take 13% and put the remainder back into the advertising budget. That does not sound like much, but over time, this 2% will add up. With a bigger budget, the client will benefit.

In order to offer a full range of marketing services an agency should receive an initial retainer to get things targeted and on the mark. As a result Carson Dunn Media could cap creative fees, and not require clients to pay a monthly running tab.

How realistic is this? What are the total savings a client will experience? I am not certain. It is a gamble, and it comes with risks. The downside may be hindered growth. But the upside is the prospects of greater profit for agency and client. More business at reduced costs mean volume – volume means success. That is the sound of the trumpet over the horizon.

….. Bernard A. McNealy, President of CDM

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