CaliberPulse

Throughout my 23 years in advertising and marketing, the one thing that perplexes me most about business owners is how they could respond to the question, “Who is your customer?” by saying “Everyone.” Mom taught me a long time ago, you can’t be all things to all people, you’ll forget who you are. This goes for businesses as well. There are many ways to determine who your core customers are. Read about six great suggestions that will help you identify your high-value customers in How to Define a ‘Good Target’ in the Digital Age. These are the customers that will give you your highest return on your marketing and advertising investment.

Face-to-face encounters with other human beings are easily avoided with all the new technology we have at our fingertips. Given how easy it is these days to keep up with business acquaintances and colleagues by e-mail and social media, the traditional methods of engaging with professionals in your industry have taken a back seat. However, tradeshows, once the most direct way that companies engaged with and targeted new customers, are still an important part of any marketing strategy and should not be overlooked. A new study by Oxford Economics USA shows how a dollar invested in business travel, returned a $12.50 increase in revenue and $3.80 in new profits. With that reinforcement in mind, plan your next industry show with a strategy. Check out these “11 Trade Show Strategies to Boost ROI” to get the most out of your time and investment.

Successful retailers have generated business through the practice of “loss leader” sales & promotion (taking the loss on one product to get customer traffic in for upsales). The decisions are not made randomly; these items are selected with purpose and by crunching the numbers to estimate the ROI. That’s exactly how you should look at using the online membership coupon services such as restaurants.com or social promotions sites like groupon.com and livingsocial.com. In an American Express Open Forum Jennifer Van Grove, Associate Editor for Mashable, points out how the pomp and circumstance around Groupon’s success makes it easy to ignore the Posies Cafes of the world. Posies Cafe owner Jessie Burke describes offering a featured Groupon deal as, "the single worst decision I have ever made as a business owner thus far." Burke's primary problem was that after deeply discounting her goods -- $6 for $13 -- and handing over 50 percent of sales to Groupon, she was unable to cover her store's operating costs, including employee payroll.

It’s time to start thinking about your marketing plan for the next year, assuming your fiscal year starts January 1. Around this time of year, assessment and planning starts. What advertising has worked? Should we put more money into interactive advertising? Do we need to revamp our website? While these are all things you should be thinking about, we recommend that you dig deeper.

Earlier this year, I gave a presentation on social media marketing at the League of Historic American Theatre’s national conference, which was held in San Antonio. The 60 theatre-proprietors and attendees that flew in for the conference were very eager to learn about the latest tips and tricks on the ever-expanding social media landscape. Many attendees I talked to claimed that they had seen social media speakers in their own cities, but told me my workshop was the best one they had ever been to. Flattery aside, it is always nice to have people appreciate your expertise. But I realized that I became a victim of the “100-Mile Rule,” which is a term our office has coined for consultants and subject-experts who are viewed as being more credible strictly because they are new, different and work at least 100 miles away.

Building good relationships with your potential competitors could lead to your phone ringing. Sevans Strategy, a public relations company based in Chicago, has decided to create a page on the owner’s blog, PRSarahEvans.com, recommending other public relations companies.

Signs that conspicuous consumption is passé abound, even as business sees an upturn in consumer spending. Savvy businesses will seize the opportunity of an economic rally dovetailing with price-sensitivity to build brand loyalty. The Wall Street Journal reported April 26 that first-quarter sales show a second consecutive period of gains with consumer-oriented companies, retailers and restaurants enjoying increased sales. By some measures, these trends indicate the economy is pulling out of recession. However, amid upward economic trend reports, value remains a top priority and thriftiness is a virtue. The frugality is chic and evident in everyday conversations when pricey vacations are discussed in apologetic tones and a compliment on a designer bag is quickly dismissed with “got it at the outlet store with a coupon.”

The Tucson Gem, Mineral & Fossil Showcase, which will bring thousands of buyers, sellers and treasure hunters from around the world to Southern Arizona through Feb. 14, will remain a Southern Arizona tradition and economic rainmaker. Fears that the Tucson Gem, Mineral & Fossil Show, commonly referred to as “the gem show,” will leave Tucson are “unfair” and “unrealistic,” said Kimberly Schmitz, director of communications and public relations for the Metropolitan Tucson Convention and Visitors Bureau. One of Tucson’s premier events, the showcase packs an annual $100 million wallop into the local economy. On its heels: Accenture Match Play Championship, La Fiesta de los Vaqueros (the Tucson Rodeo) and Spring Training. (The Arizona Diamondbacks and the Colorado Rockies leave Tucson for a new spring training facility east of Phoenix in 2011.)

Gov. Jan Brewer’s proclamation — “Arizona is open for business” — should be a rallying point for Arizona businesses. “Government can’t create jobs … only the free market can,” said Brewer as she laid out an agenda packed with economic development specifics in her State of the State Luncheon/Address Jan. 12 at the Tucson Convention Center. Overarching comments on state budget and a looming $5 billion deficit dominated the first half of her speech, but during the second half she spoke passionately of shoring up the economy through private sector involvement. Brewer cited several economic accomplishments or “strategic wins.” On the top of her list: Suntech Power, China’s largest solar panel manufacturer, which plans to begin production of its first American plant near Phoenix in the third quarter and it plans to eventually employ 200.

Do you know who your competitors are? Would your customers provide a similar response if asked the same question about you? Have the fluctuations in the economic climate changed the competitive situation for your company? Theodore Levitt’s landmark article “Marketing Myopia,” first published in 1960 in the Harvard Business Review, implores us to think of our competitive set in terms of the need we are filling or the problem we are solving for our customers, as opposed to an orientation towards the products and services we are offering. One of Levitt’s examples — rail companies that incorrectly considered themselves as being in the railroad industry rather than in the transportation industry— demonstrates the shortsightedness that made railroads ill-equipped to handle challenges from the airline and automotive sectors. It is an ideal time to start asking questions to ensure that your company doesn’t succumb to a similar fate. Consumer decision-making seems to be shifting from wants and toward needs.

I received some disturbing news last month about Arizona's economy during the University of Arizona's Eller College Economic Outlook luncheon. I learned that Arizona is ranked 50th for job growth and the state's unemployment rate is expected to rise to more than 10 percent in the first quarter of 2010. I also learned that Arizona is bankrupt with no good plan to balance the state's budget in the next few years. Unfortunately, Arizona's legislators have been unable to compromise on important budget decisions, primarily because of extreme political differences. After the luncheon, I spoke to several clients and business owners about the bad news and asked them if the state's economic and political woes would alter their business plan for 2010.