Jobs Creation and Uncertainty

Quite a few analysts, government officials and writers are scratching their heads wondering why flooding the economy with cheap dollars isn’t translating into job growth.

It’s kind of silly on their part, since all they need do is ask any large or small businessperson. There are two glaringly straightforward answers: one the economy is in a shambles, a malady that only time can cure; two, uncertainty and unpredictability abound at almost every turn.

 

Quite simply, in order to add productive capacity, whether through plant investment or additional manpower involves risk. The investor must be able to calculate the cost and predict the yield. All of you small business owners know how difficult those calculations are at this time, and they are even more difficult for larger companies that have high fixed investment costs.

The problem lies with government regulation and taxation. Health care, energy costs, taxation, and regulation have never been as uncertain or incalculable as they are right now. Take mortgage lenders as an example, faced with unprecedented price risk, contract risk through cramdown, and constantly changing appraisal rules, they are hardly in a position to calculate cost/yield on a single home, let alone industry trends in order to determine the need for more or fewer employees. Couple that with the problem that government health care discussions are running the gamut from forcing companies to purchase insurance for every employee, to taxing those benefits, to creating a new insurance entity, and it becomes impossible to calculate risk/reward for a new hire, let alone current staff. Even a small restaurant can’t be certain what future employee costs may be.

 

Given uncertainty, it shouldn’t be a head scratcher that many companies aren’t considering hiring, and are in fact axing or outsourcing every non-critical position they can. With the government on the change tirade, every employee, every lightbulb, every unit of production is potentially as much of a liability as an asset. In many ways, predictability is more important than the actual rules themselves.

 

Unemployment won’t be reduced and the economic recovery cannot begin until some degree of certainty is restored.  Once the rules are in place, business can begin moving forward and return to an offensive rather than defensive posture. Bad economic decisions at the government level can and do destroy jobs, but uncertainty is at least as destructive. Unfortunately, uncertainty is the order of the day.

 

 

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Howard Henson & Associates

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Larry Henson, President   In Business Since 1974    405-471-4888

 

 

Billy, Rush and Trout; Selling The Obvious

Jack Trout wrote a great book on marketing, “In Search of the Obvious, The Antidote for Today’s Marketing Mess.” It’s a great read for anyone in marketing and sales, which is basically everybody involved in business, given that we all must sell products, services or ourselves.

 

The premise of Trout’s book is that advertising has become too clever. The advertising world has latched onto the concepts of new and creative sales presentations. Hence we have arrived at the stage of croaking frogs selling beer, though few would remember which brand those frogs represented, why such a presentation would convince anyone to make a trip to the fridge for a cold one, or how much that Super Bowl spot cost.

 

Trout suggests that most advertising messages should begin not from an edgy new creative angle, but from stating the obvious benefit to the consumer. It’s great advertising when that message can be conveyed in a catchy memorable phrase that aptly states the brand’s benefit and image, such as “The Ultimate Driving Machine” for BMW. It’s not so great when touchy feely emotional appeal trumps actual benefit, he provides lots of examples in the book, but they are entirely forgettable, thus I can’t recall them, proof of complete ineffectiveness.

And this ties into the tremendous advertising success of Billy Mays, the ultimate pitchman, and Rush Limbaugh who may be controversial as a radio talk show host, but there is no controversy that a Rush ad can launch unknown brands effectively on a national scale. Both these men relied on the tried and true, the obvious, in their ads. Rush didn’t have his team work up a vaguely evocative spot for Snapple, he went straight to the point of a refreshing drink, as a sound clip of Snapple being poured over ice took center stage.

 

Billy Mays didn’t employ dancing gymnasts, football teams, or birds flying over pristine beaches to sell Oxyclean. He demonstrated the product and assured viewers that it worked great as promised. In many ways, the genius of Mays was his courage to stay with what was simple, effective, and obvious.

 

We can learn a lesson from these advertising minds, start from the consumer’s point of view, state and demonstrate the benefit with absolute conviction, and don’t stray from that message. To some, the obvious might not be a lot of fun, but it works for the bottom line, and that is what counts.

 

 

 

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Howard Henson & Associates

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Larry Henson, President   In Business Since 1974    405-471-4888

 

Save or Spend on Advertising?

Jack Neff reports in Advertising Age on a new study from Thinkvine, an analytics firm. The question Thinkvine sought to answer was, what effect does eliminating advertising have upon sales? In other words, can a firm save money by not advertising during a recession?

 

Thinkvine worked from the premise of eliminating advertising for one year.

It appears that in the first sixteen weeks there is little or no impact. So yes, a short hiatus may not be damaging. But within one year, the lack of advertising would lead to a 20% reduction in sales.

 

The really interesting part, is that as their analytics were carried forward into the future. When advertising again resumes, that 20% loss is very difficult to recapture. A new baseline has been established, whereby future advertising may grow sales, but without a major expenditure it won’t push the trend-line back up to the previous market share. The 20% loss remains imbedded in the future, resulting in a lower sales yield into the foreseeable future.

 

It was noted in the report that some products and brands are more sensitive and dependent upon advertising than others. It doesn’t change the fact that to eliminate advertising beyond one or two quarters permanently impacts current and future sales.  It’s also possible that eliminating advertising for a little as one quarter has a long-term negative impact, that simply lags ad spending by several weeks.

 

In any case, cancelling or reducing advertising presents real predictable depression of future earnings. Thinkvine also found, that to recapture the 20% sales loss cost far more than the original savings from suspending advertising, if it could be achieved at all.

 

Budgets are tight, but think twice about curtailing or reducing advertising and marketing, because the loss of sales is not only significant at 20%, but essentially permanent.

 

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LinkedIn: Oklahoma City Professionals Group

Howard Henson & Associates

Marketing - Advertising - Public Relations - Logo Design - Graphic Design - Web Design - Printing - Laminating

Larry Henson, President   In Business Since 1974    405-471-4888

 

Websites Part Two

Websites Part Two

Why not build your own website?

 

If you are an advertising agency or website designer, go right ahead. If you’re not, think twice about the build your own strategy.

It is true there are plenty of programs out there, with templates and all kinds of “websites for dummies” applications, but if you aren’t a professional you will spend a huge amount of time on a really mediocre product.

 

It isn’t that website design is rocket science, it is simply a highly developed constantly evolving specialty. Website design is a team effort, incorporating the skills of photographers, graphics designers, writers, the business owner, programmers and search specialists. Those of us who design and build websites professionally know enough not to step too far onto each other’s turf, because we know the value of each piece and specialty. No one is expert in all areas, teams are critical.

 

But let’s suppose you decide to use a do-it-yourself service, and with your above average skills you post a perfectly decent site. It has lots of links and everything to drive traffic. A few weeks later, the links break. Who are you going to call to fix them? Support service isn’t built into a DIY web builder. Do you know how to fix that code? Do you even want to know?

Or you find yourself buried on page 432 of the search engines? Only your grandmother will ever even look at it. How are you going to boost your rating?

Or you realize that paid search might really build traffic? Not even possible with a DIY.

 

Or maybe you want to partly finance your site with complimentary advertising? Not going to happen with DIY.

The bottom line is that for a few hundred dollars invested in professional design and service, you gain access to a professional team that can provide you with services and expertise that far outweigh the limited cost. In terms of time and headache, they’ll save you both in the short run. In the long run, the added expense of establishing a relationship with a professional web builder is a golden investment.

 

You can do it on your own. But you can’t do it better than they can. And the web is a crowded place. Good enough isn’t, you need the best. Hire the professionals.

 

 

Howard Henson & Associates, Inc.

Marketing - Public Relations - Logo Design - Graphic Design - Web Design - Printing - Laminating

Larry Henson, President   In Business Since 1974    405-471-4888

 

Killer Websites Part 1 of 2

Killer Websites Part 1 of 2

 

Hey, did you know that you need a website for your business?  Okay, silly question.

 

It used to be, a simple quick loading website was truly king. Now with broadband everywhere, and really proficient programmers, a cool coherent website is possible for everyone. Combine that with website support and you have a tremendously powerful promotional tool.

 

Yet it’s a tool that often gets short shrift from a conceptual angle. Most of us know the website better look good and deliver the relevant info fast, fast, fast. But, we stay stuck in that old mold of mapping and design. I’m not talking about the background programming, I’m talking about the big overarching concept and deciding what you need on each of those incredibly valuable pages.

 

For example, does your website begin with a page that goes something like, “About Us” we are the blah blah blah, that has been doing blah blah blah, since blah blah. This blah blah page is often the home page, the very first thing customers see when they hit your site. A lot of the time it is just so much fluff and waste.

 

Take a step back when planning your site. Make that first page a winner. Better yet, make it killer. The first page should clearly indicate who and what you are, but it can also be used for all kinds of special promotions, a calendar of events if events are your gig, new products if innovation is the heart of your company, testimonials if trust is key, a gorgeous little video or slide show if ambience is key. In other words, don’t bury your big message, the one that really drives your sales, on secondary pages, put them right up front. Don’t show me a click slide-show icon for your travel package, alongside your business location and travel industry certifications, make that home-page open onto a lovely slideshow that I can’t avoid, one that tells the entire story of the product. Put the other info, like reservations, background, location on the secondary pages for click through.

Spend some time surfing the web to check out your competition and see what they are doing, not to copy it, but to adapt their best practices. Then, instead of just updating that old, About Us, Our Products, Our History, Our Team, trash the old model.

 

Let me make this really clear. Suppose you sell widgets. A lot of the time the widget site goes like this. Home Page, We sell widgets and have done so since widgets were invented. Then it says click here to see our widgets. The first page is entirely wasted. The customer knows you sell widgets, that is why they clicked on the site at all, and got this useless page. Go ahead and make your home page a listing of all the widgets, the history of your widget selling can come later for the real aficionado or the supremely bored. Or make that home page focus on your super duper widget sale going on now, have built into the design the code that allows this super duper sale to be changed frequently, it isn’t hard if you do it in the planning. Or make that page speak to the absolute necessity of widgets and that no one can live without them and yours are beyond the best, but again it isn’t about you, it is about the customer’s need for the product.

 

I’m talking about getting into the website and reworking the entire focus and concept. Don’t settle for the same old templates. They are boring. They might work, but focused, creative, targeted site will work better. It isn’t just eyeballs, it is sales. Think of your design from the perspective of concept and not just information.

And no matter how you design it. Page One is not about you. It is about your customer and what you will do for them. It is a focus shift, but a critical one.

 

 

 

 

 

Howard Henson & Associates, Inc.

Marketing - Public Relations - Logo Design - Graphic Design - Web Design - Printing - Laminating

Larry Henson, President   In Business Since 1974    405-471-4888

 

What’s Wrong with God : Corporate Care

What’s Wrong with God : Corporate Care

This is an interesting issue to consider in the workplace

Paid Search, Gotta Love It

Paid Search, Gotta Love It

 

Paid search is a technology solution that solves real problems and produces measurable results. Those results can be huge.

 

It works like this. Your business is tagged to a list of search terms. When those terms are searched, your banner or pop-up ad appears. At last, a way to reach costumers actively searching for your product and placing your message right in front of them, with additional information just a click away. Given the intensive data banks of search engines, the ads can be specialized, targeted, segmented in dozens of ways, and measured for effectiveness.

 

Big powerful.

It’s all there, incredible data gathering, potential to test and hone the message for maximum results, big returns.

 

Better yet, it is cheap.

Be sure and incorporate paid search in your next campaign. The potential data gathered alone is well worth the cost. Experiment with it, find the message that works. As social media, networks and the internet evolve, a lot of what currently looks hopeful will fall by the wayside. Paid search is here to stay, and it is only going to get bigger. Don’t overlook one of the least expensive, most effective ways to reach active customers.

 

 

 

 

 

Howard Henson & Associates, Inc.

Marketing - Public Relations - Logo Design - Graphic Design - Web Design - Printing - Laminating

Larry Henson, President   In Business Since 1974    405-471-4888

 

Social Networking, Toss the Rules and Get Real

 

Social Networking, Toss the Rules and Get Real

 

I’ve been gnawing on this blog topic for weeks as I tried to figure out the magic formula. There isn’t one.

 

A number of rule lists, portrayed as inviolable, are circulating for how to properly use social media networks to build business. I have a problem with these “rules” because social media is evolving so fast, the list seems outdated before you have a chance to apply it. In this light, I offer the following observations on social media networking.

1.      Think of your social media network as a business party. Here is a chance to interact with a lot of people in a fairly casual setting, who might be good business contacts in the future. Behave accordingly, this is a getting to know you a little more intimately chance, not a sales seminar or the moment to tell anyone everything about you.

2.      Parties and conventions can lead to lots of new business and ideas, or can be a complete waste of time. Working almost always leads to more work, so work first, party later on a limited basis.

3.      As in any casual business gathering, sales and results usually come slowly over time. And those successes are generally built on somewhat random chance encounters. Increase your odds by selectively limiting your network and interactions to those that are likely to pay-off, but patience and being ready for opportunity count most.

4.      Direct sales pitches are supposedly forbidden on social media. Forget this notion. Regional businesses have used Twitter, Facebook and MySpace with great success for special events and promotions. This is the trick, don’t try to disguise a direct sales appeal as social interaction. Know the difference and be honest and upfront about it. If you can create a killer sales campaign delivered on social networks, go for it, just don’t try to disguise it as chit chat.

5.      Don’t think chit chat is selling or will lead to sales. It might. But unless you are Oprah, nobody cares where you ate lunch.

6.      Control your exposure. When you post yourself on a social media network, you expose yourself to the world. Polish that image, remember this is a big business party, your house slippers and sweats aren’t appropriate, nor are nutty family details.

7.      Don’t combine family and close friends on the same site as business. Even if you have the most absolutely lovely photogenic perfect family. Keep business and family life separate to keep both sides happy.

In summary. The rules for social networking aren’t new. They are the same rules that have governed interpersonal communications for centuries. When presenting yourself as a businessperson, pay at least a little attention to crafting the best image possible. If it is a casual getting to know you kind of site or communication, don’t be a pushy sales person. When you are doing a direct sales appeal, don’t try to pretend that you are just sharing the details of your marvelously cool life. It’s all about honesty, treating others in a fair and considerate manner, and understanding the difference between your personal life, business life, and those areas where the lines begin to blur.

 

 

 

 

Howard Henson & Associates, Inc.

Marketing - Public Relations - Logo Design - Graphic Design - Web Design - Printing - Laminating

Larry Henson, President   In Business Since 1974    405-471-4888