Trimming the fat from advertising: A retailer's tips for marketing efforts that generate profits - Commentary - Brief Article

Home Channel News, Nov 19, 2001 by Andy Curry

Last month I promised to reveal the most important secret in advertising and marketing. Truth is, there are so many important factors I had a hard time deciding which to reveal first. But the one I chose is the key to your success.

Let's say you need another salesperson. You aren't too picky about how they dress. Just as long as he or she is acceptable in appearance.

Someone applies for the job. His name is Johnny B. Average. B stands for barely.

Next, you do a brief background check on your future employee. He's 35 years old, has a wife and two kids. His work history is average. He's not a total waste of time. He's no superstar either. But you figure you can make it work.

So you hire him.

Sure, you didn't give it much thought. Why should you?

Before you know it, a month passes. You're driving to work one morning and you think to yourself, "I wonder how Johnny B. Average is doing? I see him on the sales floor pluggin' away. He must be doing OK."

Before you know it, years have passed. Johnny hasn't gotten much better at what he does. But he's still pluggin' away. Heck, there's no reason to replace him.

Over the years, the cost of living has risen. You have to increase wages to keep up. That includes Johnny B. Average. He costs you more as time goes. But you tolerate it. Time keeps passing and Johnny B. Average exists quietly with no justification to his value to the company.

Now let me ask you this. Did that little scenario have you squirming in your chair? Are you thinking, "I'd never have an employee like that, much less nor check to see if he is making us money or not.

Of course you wouldn't. Neither would I.

But my guess is you have a member like that in your company right now. And if I was a bettin' man I'd wager you don't keep tabs on that person.

Who is your Johnny B. Average?

Unless you've already figured it our, your advertising is the infamous Johnny B. Average.

Before you disagree with me answer these questions:

* What was the response from your last advertisement?

* What were the sales from your last ad?

* How much profit did your last ad generate?

* What items were the most profitable in your last ad?

* What items in your last ad should you "never" run again?

* What items proved to be the biggest sales generators?

* Do you have a record of what products work best for your sales so you can use them over and over?

Here's my point. Far too many business owners have no idea if their ads are working or not. Sure, an ad can generate traffic. But it might be because of only one item in the ad.

Maybe it's two items. Maybe more. Who knows?

You should know!

In the words of the great late Clyde Bedell, an advertising pro, "Bad ads often produce some results. That's because people like the store, or the offer is good, wanted and timely. Perhaps the price is a genuine bargain or va1ue and speaks for itself despite the weakness of the ad."

If you are putting out ads but don't know how the math is working then your advertising is a Johnny B. Average.

Over time, the cost to advertise grows. You pay more. But you don't get out of it what you pay into it.

What's worse, you follow the crowd and commit 1 percent to 4 percent of your gross sales to your advertising budget. Never mind how well your advertising did or didn't work. You just know you need to spend "X" dollars. That's what "they" say to do.

Accountability is key

So what is the answer? Accountability.

Make your ads accountable. Just like you expect your employees to pull their weight, so should your advertising.

Did your ad make you money? If not, analyze why. Specifically, which items in the ad pulled in more people. Which products didn't sell? Don't advertise them again.

Treat your advertising like an employee you would expect a lot out of. Don't advertise just to advertise. Spending money is serious business. Therefore, you better be serious when you advertise because you no doubt spend serious money.

On any and everything you advertise you must have a way to track it. If it means turning your advertised items into coupons then do it. Make sure your sales people staple your coupons to your tickets so you can see what's working and what's not.

Where to advertise

If you have more than one newspaper in your area to advertise in, test them against each other. Run the same ad in each paper. Change nothing except for one thing.

In the bottom right hand corner of each coupon insert a code. The code flags which paper the coupon came from. For all you know, you may be advertising in the wrong paper.

Remember this, too. You get tired of your advertising a lot sooner than your customers do. They don't remember your ads like you do. If you are doing something that works -- and you know it does because you tracked it -- then repeat it or do a similar variation of it.

Far too many business owners don't repeat what works. In fact, it's almost traditional to throw something out there because you haven't advertised for a while.

Print advertising is the best medium to use unless you can afford television advertising. But when you use print do not depend on the sales reps to put together your advertising. Although I'm sure there are exceptions, most reps are simply sellers of ad space. They typically don't have expertise in proven advertising techniques.