New world order
How much trust do Brands generate now?
We, the consumer, have become a bunch of cynics. We don't believe sales messages, we don't believe the offer is anything but a catch and we don't trust brands the way we used to. So are advertisers' budgets wasted, are messages pointless and do we have to find a new way?...more
Firstly a few negative observations. The current debacle of the banks has driven heavy nails deep into their credibility. Can we believe their claims about 'supporting small businesses' or advertisement strap lines, such as "we will find the right mortgage for you" when you know they are all salesman attached to massive bonuses. How do we equate such statements to their annual profit statements, regularly in the billions? Particularly as we watch property values slide? Or "every little helps" when most supermarkets make billions squeezing the farmer and the shopper alike? More like, every little goes to their bottom line. And then there are High Street offerings, up to 70% price reductions. Are they philanthropists? How much value did you get when you paid the full price the week before the offer? So what do we do? We fight back; we use the web to find out where we can get what we want and which deal will rip us off least. Also we go to other consumers to poll opinions about the goods and the service before we commit. And it's from the web that we seek these experienced customers and their opinions.
The Internet is set to become the biggest advertising platform of all. In the first six months of 2008 the UK spend on Internet advertising stood at £1,682.5m. Internet spend has already overtaken Radio advertising spend and is expected to exceed commercial Television in 2009. According to The Guardian newspaper, analysts predict that spending on online advertising will more than double, climbing from £7.5billion Euros in 2006 to £16billion Euros in 2012
However, all this shows, is that the world is looking through a different window not that it will accept advertising messages any better. It simply means that people are becoming more selective, more proactive about purchasing. Yes purchasing, not buying, there is a difference.
As all B2B marketing practitioners know, purchasing is a carefully considered buying process. To everybody living in a tightening economic climate, buying anything becomes a carefully considered process and the web helps make sure they get a good deal. So the web becomes the new shop window. Hardly surprising that Internet advertising will outstrip TV next year. The Internet will be 18% of all UK advertising revenue.
How does all this help the SME sell more? Simple, understanding the climate helps in constructing the right message. Putting the right message in the right place improves the chances of hitting the target.
People are more sensible than many give credit for. Most people expect companies to make profit but not unreasonable profit. People expect to pay for manpower, help, advice and transport but not for a mark-up of 100% and 'free' service. Better a well priced product and a cost for the service that gets the item transported, installed and supported. And a sales approach that is empathic with the customers' needs and attitude.
The effect of the present economic situation on big brands has less to do with the SME other than for the lessons it offers. Those lessons are simple; a brand is all about credibility and reputation in their specific area of expertise. A good reputation only comes with a history of satisfied customers; brands take time and money to build and a few moments of adverse media attention to destroy. Media attention from now on includes the Internet and the world of personal blogs, price comparative sites, independent advice sites, ombudsmen and consumer support group sites.
Somewhere, somebody has voiced his or her opinion about your product, your service and your business on the web. Time to make sure your business is saying all the right things in the right places.
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Mike Farmers, Verso Marketing.
Headed up Blaze, the second largest specialist agency in the UK, he moved on in '99 to launch a new product and a new brand into Europe, establishing a network of distributors. Today he assists SME's to grow their businesses effectively and cost efficiently.
Specialising in the B2B sector we work within a network of specialists and we're here to help you with all and any marketing issues your company has.