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Wizard(?) Of Ads And December Ad SpendingPremium Member
Posted By: D4Demand on 8/20/2004 9:02 AM (CST) 250 Points
I am helping a company establish a brand identity. (Currently the company runs coupons and promos to target only those who are ready to buy NOW)
Research is in; targets are locked; production's complete; we're ready to roll. Our strong sales year runs from Feb to Oct. We pull back almost all advertising in Nov thru Jan. Since I am trying to build a 'preference' for the brand in advance of demand, should I push the partners to spend money on ads during the Holiday Crush or simply let them do what they usually do.

The tie in to the Wizard? Oh, he says that as you try to change from attracting "sale driven" buyers to 'brand preference' buyers, you usually have a 13 week transition when demand drops off; then ads start attracting the clientele who aren't just looking for a sale. Since I have the 13 weekdemand drop build into our business cycle, I'm wondering if I can use this time to my advantage WITHOUT encountering an additional dip in sales. If I am wrong I will be pre-spending ad dollars we would use for a blitz in early Feb.

Posted by: Maria Member Response
8/20/2004 9:11 AM (CST)
Hello pickespu,
In my opinion out-of-sales-season advertising is compulsory. You need to be presented- over there- in the customers mind, givien them more reasons to buy your product. You won't achiev the same sales results as during the strong- season, but you NEED to be presented and talk to your customer if you want to achieve long term results.
You may try also finding new reasons to buy to give to your customers ( ads and PR)
Strongly believe in that!
Good luck:
Maria
 
Posted by: JBtron Member Response
8/20/2004 10:09 AM (CST)
pickespu,

WHAT IS THE PRODUCT and why is there a slow season?

In my experience, virtually nothing has a "season" anymore, given the reach and ubiquity of the Internet. Of course, there WILL be certain things that experience seasonality: you won't find winter coats in Miami for the most part nor will you find them in New York in July, but they DO get sold throughout the year to SOME consumers.

SO: is the slow season a real function of the product benefits to the consumers, or it is an imposed season, based on PREVIOUS buying/marketing behavior?

Where I'm going here should be obvious: if you're helping establish a brand, then ggg's response has merit and there should be SOME consistent communication to your target audiences throughout the year.

BUT, if the reason there's a seasonality component is because of previous marketing success/failures, why not REALLY brand your product with OUT OF SEASON, HIGH-PROFILE ADVERTISING OR DIRECT MARKETING (you mentioned coupons)??? You'd instantly get media attention because it's non-traditional, and you WILL hook a percentage of new users who never even thought of buying your widget out of season! Give them a reason and they will come, they will buy and they will be loyal, as long as the product delivers on its USPs.

Hope this helps!

Best,

::JBtron
 
Posted by: D4Demand Author Response
8/20/2004 10:58 AM (CST)
Response to JBtron:
The products are home improvements -- $3,000 and up -- siding, windows, other items that fall out of the attention span of the homeowner during cold weather and holidays.
Company is 40 years old and has advertised in Nov-Jan period in the past and found almost Zero response. So lack of response is not due to lack of advertising, but because of competing priorities for spending AND attention.
 
Posted by: Peter (henna gaijin) Member Response
8/20/2004 12:25 PM (CST)
I understand about the seasonality. Where global products get around this through hitting different markets, many local products still have to deal with seasonality.

I am not sure I agree that you need to see any loss of sales from 'sales driven' to 'brand driven' sales. I would not recommend making a full switch over from one style of promotions to the other at one time, but instead make a slow transition. Keep doing what you have been doing as you slowly build your branding.

It depends on your exact product/service, but many home improvement projects don't fall out of the attention span during the off season. For projects above a certain size (such as ones where an architect gets involved, drawings are made, permits required, etc.), there is a lot of up front work required before the construction work can be done. This work would happen during the off season to allow construction to happen during the non-off season. To promote your brand, you need to be reminding them then about what you offer.
 
Posted by: SteveByrneBranding Member Response
8/20/2004 2:20 PM (CST)
Hi pickespu,

With your research in, do you have benchmarking for the brand share already in prospective customer’s minds? Did you do a SWOT analysis on all competitors? Do you have a positioning statement that clearly claims some territory in the marketplace? How about calling a small group of customers and prospective customers and have brief open-ended-question discussions about there perceptions of your brand and seeing advertising during the off-season – I’ve done this and it’s always produced interesting feedback.

You stated getting “almost zero response” in the Nov-Jan period with coupons and promos (?) targeting those ready to buy now. What about creative offer structuring? Can you offer anything usual during the off season? Is the off season off because weather prohibits installations? Can you pre-condition the market for sales a few months later? Off season offer structuring, testing with A/B splits, there seems to be many ways to explore how to use the Jan-Oct period wisely.

Hope I haven’t inundated you with too many questions – it’s not my intention. These are the questions that came to mind while reviewing your question. Without the answers, I would tend to agree with the others you should have some branding communications during the Nov-Jan period. It could be advertising, or some PR releases, maybe a feature article in the home improvement related pub’s. Think of all media opportunities for branding – SEO, email, web placements, contests/events – how about an off season related contest with a free February home improvement project as the grand prize.

Just some of my thoughts, hope it helps,

- Steve
 
Posted by: thinkmor Member Response
8/20/2004 10:02 PM (CST)
Hi Pickespu

Some great advice from everyone above.

So what exactly do your customers do during Nov-Jan? What is there activity cycle then?

Maybe, assuming you have a showroom or retail space (hire a space at a cool venue if you have to), design attractive interior spaces using the seasonal theme - using your prods of course, arrange special events inviting your customers (particular segments) for food & drinks as a thank you or introduction to your brand. Offer your current customers an incentive to bring a friend/colleague e.g.

Use the events to remind and inform your current and prospective customers of the type of solutions you can provide with your products - maybe look into developing/cross selling/intermediary products that would work in this 'slow season'.

The events will re-enforce your brand, create empathy and also give you an opportunity to build soft sales with pre-selling into the new season.

If you don't want to do an event alone, co-brand it with a brand service/product that your customers relate and assoicate with or one which they would like to according to their interests and brand consciousness.

You can only do this by sticking close to your customers and you need to update your CRM (CMR) programmeto optimize this type of approach.

Hope that helps.
 
Posted by: Jim Deveau/Catalyst* Member Response
8/21/2004 11:22 AM (CST)
Hi pickespu:

I have a slightly different perspective on this one.

You stated that your client (historically) found almost no response to advertising in the Nov-Jan time frame - and you also stated that Home Imrpovements historically have a low season in the cold weather months.

You also stated that your advertising seems to do well with planned purchasing but not necessarily with demand generation.

Maybe your client has been saying the wrong things to the wrong customers in the cold weather months. Specifically - I wonder if there is an opportunity to push INTERIOR home improvments in the cold weather months (when some homeowners have cabin fever) and EXTERIOR work in the warm weather months. Add to this a targeted campaign with specific project ideas and/or free seminars and clinics at your retail locations, and maybe you can stimulate some response.

I am always weary of ad spending during the holiday gift-buying season simply because your ads can be lost in the clutter. However, is it possible to target wives and family members of your core consumer and sell gift certificates for tools and/or other resources? What about working with local landscapers, carpenters, architects, tradesmen, etc, and selling design services at a discount during these times to get project planning underway?

Perhaps with seasonal segmentation and messaging, you can generate advance demand for your client.

I hope this helps.
 
Posted by: BR* Member Response
8/25/2004 3:12 AM (CST)
The question was: "...pull back almost all advertising in Nov thru Jan. Since I am trying to build a 'preference' for the brand in advance of demand, should I push the partners to spend money on ads during the Holiday Crush or simply let them do what they usually do?"

a) I agree with Jim/Catalyst on the interior/exterior market, but also

b) consider selling where it ISN'T cold for half the year.

At our weekend place in Palm Desert (CA) the Coachella Valley swells three times it's size from seasonal homeowners (not just vacationers!) due to the perfect winter climate from Oct - April.

These are high-income pre-qualified buyers for your prodect/service because they're
(1) comfortable enough to have a winter home and investment properties, and
(2) they see their homes as investments in this booming market and are always trading up -- and keeping up with the Jones' in their country clubs and gated developments by constantly updating/upgrading the house/condo.

They're very "only the best" out there and if you tie in with a local designer and /or builder, boom, you're in. Teach homeowners that they prefer you with articles (education-based marketing) in the Desert Sun newspaper teaching "the Nine Ways to Double the Value to Your Home" or some such nonsense about 4" shutters or 16" diagonal tile... this will build a preference for your brand.

Do just one house (or the clubhouse) in a development, toss an open house (these people socialize like you and I work!) and show off... and take orders/deposits for the coming MAY when they leave town but the workmen start their next upgrade.

Or offer a "Party Package" offering to "get your upgrade done in time for your holiday party" so you're installing during the desert's busy season so they can show off (but your local cold-weather customers are reading about your expansion into the desert climes in your local paper!) This is a good reason to spend on desert ads from Oct. - April -- and combine it with a company weekend at a resort to reward top producers... Research high-end communities like Rancho Mirage, Indian Wells, some parts of Palm Springs and Palm Desert -- where home sales and upgrades are booming... get on it!

Sorry for the long answer but you could really do this up good -- keep us posted!
 
Posted by: Jett* Member Response
8/26/2004 10:12 AM (CST)
You stated:

"Company is 40 years old and has advertised in Nov-Jan period in the past and found almost Zero response.So lack of response is not due to lack of advertising, but because of competing priorities for spending AND attention."

How in the world do you know there is zero response? Do you post a number to call? Or is it based on lack of sales?

Furthermore, As Jim and a few others pointed out, perhaps your advertising is ill-timed. Why advertise for outdoor products while people are indoors due to weather? Is it because of shotgun marketing to the massess? Assuming everyone is sitting around watching TV so what better time to post and ad right? Wrong!! Advertise while your product is "in season" and during the cold months, advertise in place that don't have cold winters.

Your problem isn't competing priorites, it's bad timing and poor targeting.

Good Luck!!
 
Posted by: D4Demand Author Response
8/26/2004 12:15 PM (CST)
To Jett,

The reason we know there is Zero response is that we have attampted heavy ad schedules in the Nov -January time frame and receive no leads.

The products are replacement windows, vinyl siding, Patio rooms, Entry doors. These are large capital outlays that are crowded out by holiday spending AND be the decreased desire to have workman in the home around the holidays.

To restate the Question: Since image-style ads do not traditionally generate short term response anyway, do you think that posting the new Brand ads during the slow period, would be a good ad buy becasue it would give us enough time to ramp up awareness of the new brand image.

I think that if we wait for the "season" to start the new Brand ads, the lack of immediate reponse may cause the client to "chicken out" before the awareness and equity of the message have reached critical mass.

Is that more clear?
 
Posted by: D4Demand Author Response
8/27/2004 9:09 AM (CST)
I want to thank everyone who responded. Like true marketeers you all had great ideas to get around the problem.

Unfortunately, no one got to the heart of the problem, even though Maria at least addressed the issue of off season ads. The issue of whether advertising in the "off season" will deliver pent up demand for the new season, was not addressed.

As a researcher I fault my question.

Still it was my first question and, what the heck, maybe the next time my question will be clearer and I will get an answer I can use.

See you in the movies.
 
Posted by: EW* Member Response
8/28/2004 5:07 PM (CST)
You ask "will advertising in the off season deliver pent up demand for the new season" . I think several responses above get at that point by questioning whether you have the right messaging for your off-season activities.

Why not consider testing a series of ads where you pose a question or a series of questions to the consumer who may be interested in your products in several months. Something to get them thinking.

Better yet, think about giving them a winter "to-do" list where they can get some of their planning and conceptualizing done in the winter so they are ready to order your items once warmer weather arrives. Get them to think summer enjoyment during the winter-- the real benefits of those replacement windows or sliding patio doors are within their reach for that Memorial Day barbeque if they plan now.

Lastly, think about giving them something in the ad they tear out and send in-- maybe in return for a 7 step guide to home improvement you can enjoy this coming summer...that way you can track responses and begin a dialogue with consumers for your next season.
 
Posted by: BR* Member Response
8/28/2004 7:32 PM (CST)
Thank you EW, I'm agreed. Not a faulty question from D4demand, but maybe a hesitation to see all the help in the answers that were posted...
 
Posted by: mgoodman Accepted Answer
9/5/2004 6:05 PM (CST)
I'll be the contratian. I think you should avoid the holiday season, at a minimum. People are usually thinking about holiday stuff, not about home remodeling in November and December. You want to advertise (even corporate stuff) when your target audience has the time, interest, and patience to think about what you're saying/showing.

It has nothing to do with seasonality or lack of same in the category. It has to do with the mindset of your target audience at the one time of year when they are bombarded with more messages than they can assimilate ... and when they are probably more defensive about advertising generally.

You might want to start the campaign in late January, but for this category I'd avoid 4th Quarter of the year. You'd like to reach your target audience when they are ready to receive your message.
 


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