Presentation by Paul Renaud for the MBA Masterclass held at Maastricht School of Management Romania on the 2nd of October 2012 www.msmromania.org

1. Building Top Line Revenues with
Marketing
5 land mines to avoid
Paul Renaud

2. Shtick !

3. Marketing was simple back then

4. 4P’s: Place

5. 4P’s: Product

6. 4P’s: Price
$.49 to $ .99
for a 45 Record

7. 4P’s: Promotion

8. Loyalty?

9. Marcomms

10. Why did I choose
Alice Cooper?

11. ’Well …OK …!’

12. And because ‘Music is an
international language’
PAUL ANKA (16years old) PAUL ANKA (now)

13. When was the last
Time you…

14. Why do we make
things so
complicated?

15. Land mine #1 Marketing,
Sales…what’s the difference?

16. Marketing…Sales…
Which department matters most in a company?
Marketing or Sales…
‘What comes first? The chicken or the egg?’

17. Marketing…Sales…
Marketers need to have sold something to
be effective in marketing!
Marketers must understand the pain of trying
to ‘make the sale’!
Selling isn’t easy!

18. Marketing…Sales…
Sales discipline
Sales’ ability to reach sales targets established in the
Business plan – Imperative.
Account Managers go through consistent prospecting
process till a sale is made.

19. Marketing…Sales…
Day to Day Plan
0930 – 1030
Account Managers starting their day early, on time to do Telephone calls
Returning phone calls of previous day
Leads generated internally
Cold calls to prospects
Confirm presentations booked by other team members
Call on new contact developed within existing clients
Follow up on Direct mail program
Goal: Book a meeting even if it short in nature. The AM does not try to sell products/services
over the phone.
1030 – 1230
Customer meetings either booked or “in the neighborhood” calls to existing clients.
1230 – 1300
Lunch
1300 – 1600
Customer meetings
1600 – 1900
Returning phone call messages on same day
Leads generated internally.
Follow up on Direct mail program.
Cold calls to prospects
Confirm presentations
Call on new contacts provided by Marketing leads or Customer Service.

20. Marketing…Sales…
AM starts effective after approximately 1 ½
years of selling.
• know your customers,
• learn the tricks of the trade,
• avoid mistakes,
• focused on customer needs,
• expert at ‘closing’.

21. Marketing…Sales…
Fact:
 strong link between Sales & Marketing.
 always seek feedback from sales (reading market,
understanding competition, fine tuning products/ services).
NO feedback from sales? that’s a problem. Either:
1) Sales don’t have your number/email/ channel to give to
feedback,
2) Not welcoming feedback?
3) NO environment for sales to give feedback.

22. Listen to the
music!

23. Land mine # 2: Customer Experience –
are we ‘In Synch’?

24. ‘Moment of Truth ‘
One magic moment where your company is
evaluated.
 Product/service
 Performance
 Interaction with customers
 How services are delivered

25. ‘Moment of Truth ‘
‘When passengers see a coffee stain on
the
tray table in front of them, they
automatically
assume that we
have engine troubles.’
Tom Peters (Passion for Excellence, 1985)

26. ‘Moment of Truth ‘
SMS for an outstanding balance on client’s bank
card:
Cod ID client XX8644YY: La
06/02/2012 suma datorata este
67.41 RON. Restantele se raporteaza
Biroului de Credit.

27. ‘Moment of Truth ‘
Assessment:
1. Total lack of politeness. No ‘ ‘we would like to raise to your
attention’…
2. No explanation – Straight to credit bureau.
3. No warnings; ‘out of the blue’. No emails, no attempt to call/
perhaps enquire as to why unpaid or inactive.
Contradiction:
 Enormous budgets for ATL advertising in TV, Print and
outdoor with 3 Romanian sport figures.

28. ‘Moment of Truth ‘
Result:
 Client canceled the card, rather all cards.
The solution:
 All touch points and customer facing departments to be in
unison.
 Product Managers/Marketing communications need to be
attentive what:
Customer care
Retention/loyalty
Collections teams are sending to the customer via SMS.

29. ‘Moment of Truth ‘
All customers bring value!
Marketing OWNS the messages to
customers!
All messages to customers,
have to be CONSISTENT !

31. Stick to the
Shtick

32. Land mine #3: Dealing with apathy.
How Branding can instill a killer instinct

33. Dealing with Apathy
Customer complaints are vital
 how we are doing
Opportunity to solve problems
What’s worse than a customer complaining?
A customer that does not complain (…and
walks).

34. Dealing with Apathy
SOUL
is what the Brand represents…
it’s the promise delivered every day.

35. Dealing with Apathy
Let me give you an example – yes… banking!
4 years ago
 debit card renewed/ needed to wait for my new card.
 after 1 week… after 2 weeks ‘nope not ready yet’… after 6
weeks, finally get my card!
Fast forward 4 years now. Same bank!
 bank calling to deter potential fraud
 debit card had to be renewed!
 5 weeks to get a renewed card after multiple calls

36. Dealing with Apathy
Bright looking employee reaction: ‘Humm’
NO Initiative,
NO attention to the
customer,
NOT a bit of empathy!

37. Dealing with Apathy
WANT to find the answer
HAVE the initiative
WANT to kill himself for the brand
WANT to please his customer
WANT to make a difference
FEEL part of the brand!

38. The brand makes it happen!

39. Brand is
solution to
apathy

40. Land mine #4. Of course the
campaign is integrated…

41. Of course the campaign is Integrated!
Common integrated campaign pitfalls
Pitfall #1: Media that don’t reinforce each other
Pitfall #2: Create a budget first, metrics second
Pitfall #3: Awareness vs. sales
Pitfall #4: Delegate and forget
More details:
Blog - http://blog.renaud-investments.ro/

42. Of course the campaign is Integrated!
Pitfall #1: Media that don’t reinforce each other
Ask agency or team making the proposal:
• ‘The TVC will complement online how?’ or
• ‘Prove to me that customers will see same message in 2-3
different media, creating call to action?’
•‘Explain link between Outdoor and web banners?’

43. Of course the campaign is Integrated!
Pitfall #1: Media that don’t reinforce each other
Adding any combination of media is EASY
Getting them to work ‘in synch’ is NOT!
The messages : Consistent
Choice of media needs to build a 1-2 punch
Must complement each other.

44. Of course the campaign is Integrated!
Pitfall #2: Create a budget first, metrics second
Common mistake: Set a budget first, then spend later on a
variety of media.
The justification to coming up with budget first could be:
a) Slow sales
b) Competitors are not advertising as much or
c) The state of the economy.

45. Of course the campaign is Integrated!
Pitfall #3: Awareness vs. sales
It is possible to design Marketing so that the initiatives and
tools you create can generate customer revenues.
Look for an agency that can focus on:
 creation
 execution ..and
 integration of all Marketing initiatives

46. Of course the campaign is Integrated!
Pitfall #4: Delegate and forget
Chief Marketing Officer Sales-and-Marketing Pro:
 see results
 maintain the consistency of the message.
CMO has to be diligent enough to have created a succession !

47. Of course the campaign is Integrated!
You must consider the following:
1) Who’s the target of marketing campaign?
2) Initiatives follow the marketing plan?
3) Goals this campaign seeks to achieve?
4) Are Leads captured?
5) Monitor the results?

48. Will my
mother
understand
this?

49. Land mine #5.
We’ll measure it later

50. We’ll measure it later
“I am certain that half the money I spend in
advertising is wasted. The trouble is, I do not
know which half. ”
–John Wanamaker
Sustained brand advertising, or targeted retail promotions?
“Classical” media advertising or hard-selling direct Marketing?

51. We’ll measure it later
Evaluation tools that are used to measure a project’s
viability:
 Internal rate of return (IRR)
 Net present value (NPV)
 Contribution Margin
 Return On Investment (ROI)

52. We’ll measure it later
Return On Investment (ROI)
Here is a breakdown of a trade show costs and revenues:
Trade Show Expense $20,000
New Accounts 5
Existing Accounts with New Business 15
Total Accounts 20
(Cash Flow – Total Show Costs)/
Acquisition Cost/Account $1,000
Total Show Costs
New Accounts Year After
Revenue Generated $50,000
Gross Profit Percent 40% 8000-3250/3250 = 146%
Gross Profit $20,000
Tax Rate 35%
After-Tax Gross Profit $13,000
Working Capital @ 10% of Revenue -$5,000
Cash Flow $8,000
Trade Show Expense After Tax $3,250
ROI 146%
(Source: InfoTech Marketing, 2012)

53. Don’t be a ROI sissy
CFO
You

54. Summary
Generating Top Line Revenues!
The rules are the same as they were in the
70’s:
1) Listen to the music!
2) Stick to the ‘Shtick’!
3) Brand is solution to apathy
4) Will my mother understand this?
5) Don’t be a ROI sissy

55. Renaud is Romania’s leading Business Coach
www.renaud-investments.ro
http://blog.renaud-investments.ro

56. Marketing
Applied
www.leadersinmarketing.ro