Believe

We Don't Believe In Advertising . . .
Advertising is not a matter of faith. Advertising must be
evaluated as an investment with a projected payoff.

Never spend a penny on advertising.
It is more productive to think of advertising as an investment
rather than as an expense. If you cannot project a substantial return
on investment (R.O.I.) for marketing communications, don't do it.

Proof of payoff.
The problem: It can be difficult to quantify advertising's dollars-and-cents
results. Outlined below are a few points that will help
clarify the R.O.I. for marketing communications.

A no-obligation presentation.
To explain the solid research that validates marketing communications'
R.O.I., we prepared a 30-minute presentation for clients. We have
also made this presentation at marketing communications seminars.
We will be glad to provide a one-on-one presentation of this material
in your office. Then, when your company President asks, . . .
"How do we know our
advertising efforts pay off?"

A substantial body of evidence exists which
proves that effective marketing communications
provide a handsome return on investment by:

Putting marketing communications in a "test tube" isn't easy, but it can be done. It is difficult to isolate marketing communications from the swirl of other market-place factors. Other factors often have a more immediate and visible effect.

However, there are two valid approaches that do isolate the effects of marketing communications. Below is a brief overview of the research findings along with source references. This overview does not include the extensive validating research and supportive data. The subtleties of the research results can best be explained in person. We offer a 30-minute presentation which documents marketing communications' R.O.I. in actual case studies. We will be glad to provide this comprehensive presentation, one-on-one, in your office. There is no obligation, of course.

A. Well planned marketing communications for a viable
product usually pay off through increased sales.

(Sources: Harvard Business Review "Morrill Studies" and The Advertising
Research Foundation "Impact Of Business Advertising On Sales & Profits".)

B. Effective marketing communications improve selling
efficiency (reduces selling expense) in four ways.

1. Marketing communications reduce selling expense by making the first sales call. It informs and predisposes in advance of the more expensive "live" sales calls. An industrial sale usually requires a number of personal, phone, and written contacts. Marketing communications reduce selling expense by "automating" a portion of the sales effort and reducing the number of more expensive live sales calls.

(Source: Harvard Business Review "Morrill Studies".)

2. Qualified leads provided by marketing communications help focus and streamline the sales effort. These inquiries foster contacts with prospects at a time when they have an intensified interest in a product. 66% of magazine postcard inquirers who responded to a survey claimed that their inquiry was linked to an eventual purchase.

(Source: Gordon Business Publications.)

3. Marketing communications help sell to "unknown" and "unreachable" buying influences within current customer companies. In-depth research indicates that for major industrial purchases, 50% of "brand-deciders" are not called on by sales representatives. (Source: Cahners Publishing.)

4. Marketing communications keep customers sold by making the last sales call. Research shows that customers are most interested in advertising after they buy a product. Marketing communications reinforce customer purchase decisions and prime them for their next purchase cycle.

C. Marketing communications improve profitability.
        Effective marketing communications generate
        "greater perceived value" for a product in
        the minds of buying influences. This translates
        into a willingness to pay a premium price.

(Source: Harvard Business Review "Morrill Studies".)