Are You Upselling?

Barry Labov started as a musician and jingle writer and evolved into creating an agency that focuses on working with businesses that have dealer networks. Volkswagen is one of their major clients and they are located here in my city Fort Wayne, along with a couple of satellite offices elsewhere.

Besides knowing Barry and a few members of his team, I also keep an eye on their blog.

Check out this piece from earlier this month and click here for their website.

Asking (again) for the sale

A regional drive-through car wash I frequently visit does a great job in a number of areas like marketing and attention to detail, like putting a bag over your rear wiper so it doesn’t end up like a projectile from the movie “Twister.” But the one thing they’re really good at is asking for the sale—even after I’m sold. I have a book of coupons for the basic wash, but without fail, the friendly guy or girl says, “Looks like a little bit of brake dust…it’s just $2 for the Wheel Bright.” It’s my guess that those two dollars (asked for consistently) mean the difference between having a thriving car wash enterprise or going out of business.

– Jim

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McDrink

The next two Fridays, one of my radio stations is teaming up with McDonalds to do Real Fruit Friday's at lunch time.

AdAge.com shares the details of their latest success:

McDonald's Unleashes Summer Sales Weapon: Beverages

Ahead of National Advertising, Chain Is Finding Success -- and Unexpected Customers -- With Line of Frappes, Smoothies

By Emily Bryson York

Published: July 12, 2010

CHICAGO (AdAge.com) -- Burgers, schmurgers: This summer at McDonald's, the focus is on beverages. The chain is launching frappes and smoothies by way of its McCafe line and sales are surging -- even before the national advertising, which officially launches this week.

The entire line of beverages, including lattes and cappuccinos is expected to add about $125,000 to each restaurant's annual sales and $1 billion to McDonald's bottom line. It's a good thing, too, because new equipment and remodeling costs ran up to $100,000 per restaurant, although McDonald's kicked in a portion of the cost.

Tim Klein

McDonald's coffee drink is a cheaper alternative to Starbucks.

So far, McDonald's has said the McCafe drinks are on pace with that goal. In May, the chain credited frappes as part of the reason for a 3.4% increase in U.S. same-store sales. Smoothies are also selling ahead of expectations, McDonald's spokeswoman Danya Proud confirmed. So much so that the chain recently asked exuberant franchisees to curtail promotions in advance of launch.

While the drinks are well-known among urbanites, they have yet to catch on in the mass market. One sticking point may have been one of availability. Now McDonald's is putting them in 14,000 U.S. locations and throwing the switch on its $1.2 billion U.S. advertising spending. Another is a lack of knowledge about the products. And so the chain is beginning another education campaign, having spent much of last spring explaining the latte. Ads from DDB Chicago, depicts berries and yogurt going into a blender to create a "real fruit smoothie."

Women seem the most likely target for these sweet drinks, and McDonald's has undertaken a variety of initiatives in recent years to woo them into restaurants or entice them to buy something for themselves while making a stop for the kids. Ad Age decided to stop by a downtown Chicago location, and get a sense of who is buying the new beverages and why.

"The idea has been to do as much visible and audible advertising as possible," said franchisee Nick Karavitis, pointing to signs on the menu board and recorded messages that greet customers in the drive-thru, saying, for instance, "We now have smoothies and frappes." But once national advertising starts, he predicts sales will go through the roof.

It's not just women, though, a number of men confessed to be fans. A young man who identified himself as Matt Blank said he was drinking his eighth frappe and had gotten hooked on the sweet concoctions. He was unable, though, to convince companion Naomi Garcia to even have a sip. Ms. Garcia, who described herself as "basically vegan," had insisted they visit Starbucks next. "I trust their food," she said.

But the smoothies seemed to be enticing a few vegetarians to the home of Big Mac. Two women, Saman Sheikh and Trina Wolfson, separately confided that they hadn't been to McDonald's in years. They each ordered fries to go with their smoothies, apparently not realizing the fries are flavored with beef.

A mother and son visiting from Albuquerque praised the smoothies. Becky Burrage said she makes smoothies at home, but was pleased with the product.

Not everyone was as complimentary of the frappes. Kate Falardeau, who said she was having her first lunch at McDonald's in years, had also ordered her first mocha frappe. "It's more like a milkshake," she said. "And I wanted something that tasted like coffee."

But Taylor Shaw, an area high-school student, said she was enjoying her caramel frappe. And while she'd had the similar product at Starbucks, she said the McDonald's version had saved her money, which was going toward a purse she was going to buy at Water Tower Place.

Another important aspect of the premium beverages is the ability to build business in off-peak times. While the drinks are an easy upgrade from a coffee or soda, smoothies and frappes also fit the bill for a late-morning or mid-afternoon snack. The fast-food industry has worked hard to drive traffic in middling hours, with items like snack wraps. Mr. Karavitis noted that the drinks also do well in the evening, as dessert or even a late-night snack.

Now the problem for McDonald's is what to do about the tired-by-comparison triple-thick milkshakes. The chain is working to add a premium touch to the drinks, serving them in clear McCafe cups and adding whipped cream and a cherry. The chain is also working on a number of trendier shake flavors and styles. The Chicago and State location was serving a take on an orange-sherbet shake with striated layers of white and orange.

And get ready Sonic: the McSmoothie machine is already equipped with a button for ice-blended strawberry lemonade. The drink itself is still in test, in a handful of markets, including Michigan and Austin, Texas.

Our Reporter Learns to Leave Drink-Making to the Experts

So if I can break stories about McDonald's marketing, I ought to be able to make one of its smoothies, right? Not so much. After a few highly supervised minutes operating its state-of the art ice-blended-drink machine, McDonald's spokeswoman Danya Proud told me, "Don't quit your day job."

Tim Klein

McDonald's employs a drink specialist to run the two machines that make its espresso-based and ice-blended drinks. In a very short stint just before the lunch rush last Thursday, I learned how to make a smoothie and a frappe.

The first thing is to grab the pitcher, which gets inverted and washed after each use, and fit it under the drink chute. Now select the drink and the size on the touch screen. Check! Since the machine adds and measures each ingredient by weight, the actual preparation is pretty foolproof. For a smoothie, it draws pre-made smoothie mix and frozen yogurt from drawers beneath the counter, and adds ice.

Now comes the hard part: grabbing a plastic cup from the bays overhead. Not easy if you're 5' 2," and even harder if you use any pressure, which I did. Luckily, the owner-operator was on hand to do it for me. Smoothies are served without toppings. But on the subsequent frappe, I really got to shine: covering the top with a layer of whipped cream was done in only two tries. Then I drizzled the top with chocolate sauce and added a lid without sticking my finger through.

Now, back to my day job.

--Emily Bryson York

What People Are Saying About the New Products

Saman Sheikh

Tim Klein

Saman Sheikh

This Chicago-based journalist said she hadn't visited a McDonald's in years. "I try to eat healthy," she said, and that includes a vegetarian diet. She cited concerns about the company's treatment of animals. "I really think they should rethink their practices," she said. (Franchisee Nick Karavitis said smoothies are giving McDonald's a chance to combat commonly-held misperceptions about the food and how it's made.)

Taylor Shaw

Tim Klein

Taylor Shaw

This high-school student from the Western suburbs stopped at McDonald's with friends and had a caramel frappe. She'd had Starbucks' version, but said she wanted to save money for a new purse. Darren Tristano, exec VP of Technomic, said that millennials are a solid target for ice-blended drinks because they had more options (read: fewer milkshakes) while growing up. Smoothies, he said, "taste good and the flavors are going to be appealing and there's a healthful association." Freshness is another bonus, he said, as well we the ability to offer a variety of flavors.

Matt Blank

Tim Klein

Matt Blank

If McCafé drinks primarily appeal to women, their charms aren't entirely lost on men. Mr. Blank stopped in for what he said was his eighth frappe. "I'm hooked," he said. Mr. Tristano said to expect a lot of men with McCafés. The drinks are "a natural for men who want something cold and tasty." Companion Naomi Garcia was having none of it. "I'm going to Starbucks," she said.

--Emily Bryson York

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Values Beat Mission Statements

Today I took the day off from my day job as an advertising account executive and manager at a group of radio stations and wore jeans all day.

And I worked, too, including a meeting with a radio client of mine who wanted to hand me a check for a couple thousand dollars. As a matter of fact, that meeting is occurring right now as this post hits the net. We are meeting at a locally owned and operated coffee shop.

I support several of them and with my laptop and their free wifi, it is a good trade off. The two coffee shop owners that I know the best have a values driven system of running their businesses. They are loyal to the city we live in and give in many unmeasureable ways.

Their business plans were never to dominate the world and wipe out all other coffee shops.

Earlier today, I was writing this while sitting in the other coffee shop I am talking about and came across the following story from Inc.

My question to you is what type of business are you running? Has it changed over the years? Do you want it to change now? All is possible if you want it.

How to Build a Values-Driven Business

More start-up founders are identifying themselves as social entrepreneurs--that is, people who build organizations with an eye towards having a positive effect on the world.

By Tamara Schweitzer | Mar 31, 2010

With so much talk these days about corporate social responsibility, many companies are feeling compelled to jump on the values bandwagon. Because of their agility, small businesses in particular are at the forefront of what is becoming a responsibility revolution. But, what does it really mean to be a mission-driven business? Simply selling green products does not classify a company as values-led, according to Jeffrey Hollender, co-founder of the consumer products company Seventh Generation. So, whether you are thinking about starting a social enterprise, or want to incorporate a social mission into an existing company, here are some tips for succeeding as a social entrepreneur.

Building a Values-Driven Business: Think About What You Can Provide

Being passionate about protecting the environment or providing clean water to kids in Africa is all well and good, but in order to be a social enterprise you also need to have a product or service that provides value to others. Jeffrey Hollender of Seventh Generation recommends going through the following exercise to determine what kind of value proposition your business will have. Hollender says that every entrepreneur should start by trying to answer the following question: What does the world most need that we as a company are uniquely able to provide?

The key point for any social entrepreneur to understand is, "your core values and passion have to align with some demand in the marketplace," says Hollender. In other words, a values-driven business isn't going to succeed if it relies on the owner's passion alone. Deborah Nelson, director of San Francisco-based Social Venture Network, a non-profit organization that supports social entrepreneurs, says there's more than one meaning to "value" when it comes to running a social enterprise – there's your market value and also your defining values (or beliefs). She reminds budding social entrepreneurs that it's important when building your company to "lead with your value, and follow with your values."

Dig Deeper: How to Create a Company Philosophy

Building a Values-Driven Business: Hone Your Mission Statement

Having a visible and known mission statement is crucial to building a values-driven business. It's not uncommon for businesses in general to form without a mission statement, but if you haven't spent a significant amount of time thinking about the goals of your social enterprise, make sure you work on that core building block before going any further. "It's always a good idea to go online and read the mission statements of the 10 companies that you most admire," says Hollender. You'll find that it helps to see the operating principles and values-oriented statements put out by established companies, and then use those as model for your own, he says.

You'll want your mission statement to embody both what you're passionate about and how your business will help you fulfill it. "Your mission statement should be strong enough that it continually drives you to keep focused on your values, and gives insight into your value proposition as a business," says Hollender. Once you've spent some time refining your mission statement, don't just ignore it. Use it as your compass for making decisions, and put it out there whenever you're presenting your company to others.

Dig Deeper: How to Write a Mission Statement

Building a Values-Driven Business: Focus Your Efforts

Focus can be a big challenge for social entrepreneurs, says Ganesh Rengaswamy, a vice president at Unitus, an international non-profit that promotes the growth of microfinance. Most do-gooders have started a social enterprise because they are very passionate about a particular social issue or problem. However, Rengaswamy, who has trained entrepreneurs worldwide on the topic of leadership and social enterprise, says it's common to get distracted by the broader social problems while building a company, and feel compelled to want to "fix it all." In his experience, Rengaswamy has found the entrepreneurs who become most successful are those who stay focused on their founding mission and don't try to do too much at once.

One way Hollender recommends staying focused is to start small. For example, if your mission is to stop hunger, it's better to refine that by being specific about what you can do on a local or more concentrated scale to achieve that mission. You will always be able to expand on that vision later, once you've established yourself as a business. Another danger of trying to do it all is that it often creates confusion for employees, and then they don't know what aspect of your vision they are expected to deliver on, says Hollender. "If your employees or people connected to your company can't tell you how the given mission of your company would affect a decision they have to make, then you are probably not staying focused enough," he says.

Dig Deeper: The Power of Focus

Building a Values-Driven Business: Practice Transparency

Along with the task of staying focused comes the importance of being transparent in the way that you run your business. The easiest way to build trust with consumers and employees is to be clear about what you are and aren't doing, says Hollender. A good way to create that transparency is by putting together a corporate responsibility report. The report doesn't have to be long but it should discuss how exactly you are being socially responsible in your process and methods, says Hollender. It's important to point out the areas where you are striving to do this as well, but may not have the capacity to do so at the time. It's helpful to post the report on your Website for your customers to see, as well as share it with your staff. The more open you are about your process, the easier it will be for your employees to deliver on your mission, says Rengaswamy, and the more invested they will feel in the success of the company.

Dig Deeper: How Transparent is Your Company?

Building a Values-Driven Business: Treat Your Workers Well

While outwardly your business is driven by your social mission, what happens inside your company is an expression of that mission as well. That means also focusing your passionate energy inward to create a fair and beneficial work environment for your employees. In his new book, The Responsibility Revolution, Hollender describes this principle as striving to be authentically good, by building the mission into every part of your business. "Your employees are one of the key stakeholders at a social enterprise, so make sure that your values are reflected internally as well," says Hollender. It's easy to get carried away with developing your product and everything that you have to do to keep consumers happy. But, if the health of the company is suffering internally, the rest doesn't really matter.

Dig Deeper: How to Build a Culture of Employee Appreciation

Building a Values-Driven Business: Build Your Team

According to Rengaswamy, one of the most important aspects of running a social enterprise is the people you hire to work at your company. While smart hiring is crucial to the success of any small business, there are certain things to look for when hiring for a social enterprise, says Rengaswany. It can often be more challenging for social entrepreneurs to attract high-quality people, because you aren't just looking for someone who can do their job well. You also want to bring the people on board who really understand the mission of your company and believe in it. Those who are eager to build upon your vision are the kind of employees that won't just help your company grow, but the ones who will grow with you. Your challenge as their boss is to make sure they remain motivated and excited about the mission.

Blake Mycoskie, the founder of TOMS Shoes, estimates that he spends about 30 percent of his time on hiring, which has been a crucial role for him especially during the past couple years as the company has experienced rapid growth. The dedication to finding the right people has paid off for Mycoskie. Many of the original interns he hired when he started TOMS four years ago, are still with him to this day, and are now moving into key strategic roles. They have also helped shaped the culture and keep it intact as new people come onboard, Mycoskie says.

Dig Deeper: How to Improve Your Hiring Practices

Building a Values-Driven Business: Educate Yourself

The more involved you are with a community of like-minded social enterprises, the more knowledge you will gain about decisions crucial to your own company. Deborah Nelson of the Social Venture Network recommends finding a group of trusted advisors who can take part in your company in a mentoring capacity. Finding advisors that you admire often comes from joining community networks, especially ones that are geared towards social responsibility in business. You don't necessarily have to find an organization based in your city or state, says Hollender, because many of them, like Vermont Business for Social Responsibility, Social Venture Network, and Social Enterprise Alliance have a wealth of resources on their Websites. It's a good idea to sign up for newsletters from these organizations and keep watch for upcoming networking events. Additionally, Hollender helped start Sustainability Institute, a training portal for social entrepreneurs, which offers a variety of paid online courses geared towards individuals and emerging companies that are getting started with a social enterprise.

Dig Deeper: The Education of an Educated CEO

Building a Values-Driven Business: Market Yourself

This may seem like an obvious piece of advice, but according to Nelson, it's common for social entrepreneurs to get so passionate about their mission that they forget that they also have to be incredibly creative about promoting their products and their business. "You can't rely on social mission to sell your product," she says. "You can have a great product and great business practices, but if you don't promote it, you won't sell anything." If you don't have a dedicated marketing person on your team, there are firms that specialize in doing creative for social enterprises. Some well-known firms to check out are: Metropolitan Group, Free Range Studios, Mission Minded, and BBMG.

Dig Deeper: 30 Memorable Marketing Campaigns

Building a Values-Driven Business: Remember Your Cash Flow

Just as marketing should be integral to your business, turning a profit is just as essential. In order to make a difference through social enterprise, your business has to be financially healthy. According to Nelson, there's a saying in the social entrepreneurship community: "No margin, no mission," and Hollender at Seventh Generation was a case in point. He says the biggest mistake he made when he was first starting out was he focused too much on his mission at the exclusion of profits and, as a result, the company functioned largely as a non-profit for the first 13 years in business. During that time, Hollender was forced to constantly raise additional capital until he was able to balance out the business side with his passion. Keeping your expenses lean and bootstrapping as much as possible at the beginning will help you achieve that crucial balance. You can't afford to be naïve about your numbers, either. Nelson advises entrepreneurs who may not have a knack for the financials to get help from someone who can pay attention to key indicators and report on the trajectory of your profit margins.

Dig Deeper: How to Manage Cash Flow

Building a Values-Driven Business: Consider Becoming a B Corp.

As a social enterprise, you will discover that you are often held to a higher standard by customers, and even by potential investors. "The stakes are much higher now for businesses that are attempting to do good by doing well," says Nelson, so be prepared for your every move and decision to be scrutinized, with your missteps potentially becoming public crises. However, many successful companies – think The Body Shop, Odwalla, Ben & Jerry's – have walked this path before and come out on top. As a result, they have paved the way for a new business classification called the B Corporation, which serves as a distinction for a company's sustainability standards, in addition to its traditional founding legal structure of S Corp, C Corp, or LLC.

The idea for creating a set of sustainability metrics and performance standards by which social enterprises can be recognized and held accountable came out of B Labs, a non-profit formed in 2006 by three friends passionate about the do-good business model. There are currently about 280 companies representing over 60 industries that have been certified as B Corps since mid-2007, according to B Labs co-founder Jay Coen Gilbert. While B Corp is not yet legally recognized as a standalone business classification, companies that have received the distinction are part of a significant group of social enterprises (including Seventh Generation, Method, and White Dog Café) that have chosen to operate according to a higher set of standards.

Any company can become a B Corp through a simple process set forth on the B Labs Website. Businesses must first take a survey that assesses the company's score in relation to their sustainability performance. If they receive a score of at least 80 (out of a possible 200), businesses may then go on to amend their founding documents to provide for stakeholder interests. "Once you have been approved in the assessment, we provide you with the exact wording to incorporate into your governing documents," says Coen Gilbert. "One of the major purposes of the B Corp model is to make it easier for entrepreneurs to change the DNA of their business so they are legally protected when it comes to their mission, but are also required to consider the impact of their decisions on other interested parties," says Coen Gilbert. He describes the B Corp classification as an overlay to the existing corporate structure at a company, which further helps bake their values into the way the business functions. B Labs is currently working towards getting legislation passed in several states that would formally recognize the B Corporation as a distinct legal entity. So far, legislation has already been introduced in Vermont, with Maryland, New York, and Pennsylvania poised to follow.

While there are unique challenges facing social entrepreneurs in the quest to lead successful values-driven businesses, Hollender believes it will get increasingly easy for companies to take on social responsibility. In part, this is due to organizations like B Labs and the American Sustainable Business Council that are helping to mobilize social enterprises to influence policy change. "The good news is that this couldn't be a better time to start a values-oriented business," says Hollender. "There is a greater demand and consumer receptivity to these types of businesses than ever before."

Dig Deeper: The Thinking Behind B Corporations

Building a Values-Driven Business: Additional Resources

Visit these organizations' Websites to find a wealth of information on socially responsible businesses.

Social Venture Network's Tools & Best Practices
SVN.org

B Labs – B Corporation
Bcorporation.net/

American Sustainable Business Council
Ssbcouncil.org/

Business for Social Responsibility
Bsr.org/

BALLE – Business Alliance for Local Living Economies
Livingeconomies.org/

Social Enterprise Alliance
SE-Alliance.org/

Copyright © 2010 Mansueto Ventures LLC. All rights reserved.
Inc.com, 7 World Trade Center, New York, NY 10007-2195.

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The How & Why You Should Advertise to the Hispanic Market

When I read this story from Mediapost, I got excited.

For the past year, along with my working for three Fort Wayne radio stations, I've been doing some work with the local Hispanic newspaper. Click here to go to my website and on the left side of the page, there are links to all of the media I work with.

In the meantime, read this:

It's The Allocation, Stupid

We sometimes don't realize the obvious until someone points it out, as James Carville famously did during the 1992 presidential election, saying, "It's the economy, stupid." This is often the case with budgeting for Hispanic marketing.

Have you said any of these lines or one similar following a pitch by an agency or Spanish-language media executive?

"I don't have a Hispanic marketing budget."

"Marketing to Hispanics isn't in our plan."

"Call me in a few months to see if we have any budget left to do Hispanic marketing."

"We'll try to include Hispanic marketing budgets in next year's budget"

If so, then please allow me to point out the obvious: You do have a Hispanic marketing budget; you may just be spending it in the wrong places. The question comes down to proper allocation of marketing budgets based on your current and future customer base.

To allocate budgets properly, however, requires an honest look at and understanding of who your actual customer is today and who it will be in the future. Again, sounds obvious, right? Yet, many marketers don't know -- or perhaps don't want to know -- and often resort to going by who their customer was yesterday to make budget allocation decisions for today and for tomorrow.

I'm reminded of an indoor water park I pitched in the past whose marketing director said they weren't budgeting for Hispanics because, "Hispanics aren't our target market." Pressed a bit further on who is the target, the marketing person indicated it was families within a 40-mile radius of their location, an area that includes five of the state's largest cities, each with at least 30% Hispanic populations, and some as high as 45%. Not to mention the fact Hispanics have larger families than any other demographic in that area and are 10 years younger on average. So, in essence, they're content to spend 100% of their marketing budget trying to target an older population that has smaller families.

Here are some practical tips to ensure you're maximizing your marketing budgets:

1.Allocate proportional to your customer base, not a census number. If you spend 15% on the Hispanic market because Uncle Sam says that's the percentage of Hispanics there are in the U.S., the good news is you are probably ahead of your competitors. The bad news is you are likely not maximizing your reach.

2.Test market. If you're not ready to take a full plunge, try testing a Hispanic marketing program in one geographical area or across one product line.

3.But, dip more than your toe in the water. If you do decide to test market, invest properly and do a legitimate test. Don't do one or two small or short-term activities and then blame the market for a lack of response.

4.Research the cost of Spanish-language marketing. You might be pleasantly surprised at the reach and frequency you can obtain, not to mention ROI, through the Spanish-language media at a fraction of the cost of the general market media.

5.Yes, you are likely reaching some of us via general market, but don't waste the opportunity. While research is clear that Hispanics respond at a high rate to Spanish-language commercials and place affinity on those brands that cater to us, many Hispanics do consume general market media. However, don't assume your message is connecting with us just because we saw your spot. Even in English, commercials need to be culturally relevant and appeal to Hispanics in ways that may differ greatly than the general market. Why? Because marketing to Hispanic is not about appealing to a language preference, but rather it's about speaking our culture. There is a big difference between being bilingual and bi-cultural.

6.Go beyond topical spending. Some companies have budgets for Hispanic Heritage Month or are perhaps eyeing the 2010 World Cup, but tactical approaches will only yield you modest returns. This is a relationship-building demographic that is brand loyal where sustained approaches are most effective.

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The Inside Story

Rarely have I promoted what I do on this site, but recently I was interviewed for the local Greater Fort Wayne Business Weekly and they did an excellent job:

“I saw the most successful forms of advertising and marketing are those that mimic how we as people like to be treated”

Name: Scott Howard

Age: 49

Title: Owner

Company: ScLoHo Marketing Solutions

Other: Station sales manager for WGL and senior sales executive for WXKE and WNHT



How did you end up creating ScLoHo Marketing Solutions?

I pursued a career in radio for about 10 years on the air … In the late ’80s, I took a position in Detroit where I got involved in the advertising and marketing side of the business. I was up there for eight years and then returned back to Indiana and was back on the air in Fort Wayne for a couple of years.

Six years ago, I decided to go back into the advertising world … and have been with Summit City Radio since 2003, doing everything from advertising sales to director of long-form programming to being sales manager to station manager.

And along the way (I) discovered that while I truly enjoyed what I was doing, there were also things that I was doing that we couldn’t help (advertisers) with at the radio station. There were things in their marketing that they needed to fix, or perhaps they weren’t ready for something in mass media yet. Oftentimes I’d be referring them to businesses I was affiliated with and finally decided that it was time to start acting as a coordinator for all these things …

What do you enjoy about the work?

Helping business owners, who are experts in their own field, succeed and giving them an outside perspective on how they can improve things in their marketing. I was fascinated with how people make decisions to do what they’re going to do.

When I was growing up, I thought of becoming a psychologist. Later in life, I thought about becoming an attorney because of the research that was involved. This sort of combines both of those things in a helpful manner to help businesses succeed.

What is the greatest challenge you face each day?

Probably continually reordering my priorities depending upon the needs of current clients and new ones. It’s juggling, I guess. I couldn’t have done this 10 years ago because we still had kids at home.

What is the greatest lesson you have learned in your career?

Constantly be listening, observing and learning. It started when I went up to Detroit and got into the advertising field because I started devouring some books … I saw the most successful forms of advertising and marketing are those that mimic how we as people like to be treated.

What advice do you have for young people who want to get into the advertising business?

Find a mentor. Aggressively pursue the companies you’re interested in working for. Volunteer, either at a place you want to work or wherever you might be able to get some experience.

What future plans do you have?

I decided that I’ll probably stay the rest of my life in Fort Wayne … And after a week’s vacation we decided after driving 2,000 to 3,000 miles we liked living in Fort Wayne and never want to take a trip that long again … I’ll continue to do what I’m doing.

By Derrick Gingery. To suggest an idea for “Career Path,” e-mail us at news@fwbusiness.com or call (260) 426-2640.

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Don't Overlook This

..segment of the population.

It is the fastest growing minority in the United States and has been unfairly ignored. I'm talking about the Hispanic or Latino population.

Recently I added another advertising option for my clients and potential clients to consider along with the radio station options that I've been offering for the past 6 years. Here's how it began:

One of my radio stations was an AM News/Talk station that aired a Spanish Language music program, "Radio Latino" on Saturday & Sunday nights from 10pm to midnight.

Due to the success of that brokered time, the hosts wanted to expand and they ended up with 21 hours a week from 9pm to midnight, 7 nights a week. Then, the owners of the station, dropped the news/talk format and went to what is called an Adult Standards format and with the switch, the Hispanic radio show was also dropped.

A few years later another group of investors started a Hispanic radio station in Fort Wayne, but it has been plagued with problems and I caution folks from using it. Instead, there is another way that businesses can effectively reach the Hispanic communiity in our area and that is with the monthly newspaper that is celebrating 15 years of steady growth this month.

El Mexicano is published by the same man who used to host Radio Latino on our radio stations, which is how I first met him and was introduced to this pulication.

Each week, I continue to see more and more reasons why a business should consider advertising to this community and now you can by contacting me at Scott@ScLoHo.net . In the meantime, look at this from Mediapost:

According to custom week-by-week data from Experian Simmons, reported by Univision Communications, 34% of Hispanics are optimistic about their finances in the coming year vs. 25% of non-Hispanics, and 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics. The report reveals consumers' reaction to today's economic climate from a total market and Hispanic consumer perspective.

Ceril Shagrin, executive vice president, Corporate Research, Univision Communications, observes that "The volatility of the current recessionary economy has created a need for more current week-by-week data... (to) capture changes in consumer behavior and purchasing patterns... " allowing marketers to take an in-depth look at real-time information... for a better understanding of the impact on consumers.

The results from the past 65 weeks, says the report, indicate that while the overall consumer mindset is increasingly negative, Hispanics are more optimistic in the period following the "meltdown," versus prior to September 29th, 2008:

• 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics
• Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and has remained constant since 2005, while non-Hispanics confidence rating has declined

Study results show contributing factors to why Hispanics are less affected by today's economic climate:

• Only 45% of Hispanics have/use credit cards vs. 71% of non-Hispanics
• Hispanics are 44% more likely to use cash to pay bills than non-Hispanics (Index 156 to 91)
• Hispanics are almost 2x as likely to rent their home as non-Hispanics (44% vs 23%), and are less likely to be impacted by the high percent of mortgage foreclosures

The findings highlight Hispanics as a key target consumer for advertisers, says the report:

• Hispanics are consistently more frequent shoppers than non-Hispanics (34% vs 29%)
• Twice as many Hispanics are willing to pay for branded prescriptions as non-Hispanics (31% vs 15%)
• Hispanics are 38% more likely to buy from an advertiser than non-Hispanics (Index 131 to 95)

And Mediaweek writes that not only do Hispanics have a more positive attitude (about the economy) than non-Hispanics, but they go shopping more frequently compared to non-Hispanics and Hispanics are more willing to pay for branded prescriptions than non-Hispanics.

Continuing, Mediaweek says that advertising carries a lot of weight with Hispanics, who enjoy TV spots and remember touted products when shopping. Hispanics are 38 percent more likely to buy from an advertiser than non-Hispanics, seeing it as a source of information, not a nuisance. Univision notes that one casual dining space advertiser saw a sales lift of 23% by targeting Hispanics.

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Does Coffee Advertising Work?

10 years ago, I hardly drank it.

Then I met my wife, who has a passion for a good tasting cup of coffee, although she usually drinks decaf.

She introduced me to a couple local coffee shops where we would try different drinks and deserts and check out the entertainment.

Starbucks had not yet invaded Fort Wayne, Indiana.

We would sometimes have days off in the middle of the week and travel to find new coffee shops.

After a couple of years, I was hooked on the coffee shop experience and I was also back in the advertising and marketing business. Advertising did not persuade me to drink coffee. My wife did. Classic Word of Mouth.

Earlier this month, we took a trip to the New England States and found very few Starbucks but lots of Dunkin' Donuts. I also could judge a small town's fortunes by whether or not they had a McDonalds.

All three are battling it out in the coffee biz these days along with the local Mom & Pops that I will visit when I am in Fort Wayne, even though we have the Big 3 available too.

AdAge released a report on the results of the advertising that the Big 3 have been brewing up the past few months. Be sure to read the last paragraph:

All That Advertising Brings Buzz for Coffee Marketers

Brand Index: Consumers Saying More Positive Things About Starbucks, McDonald's, Dunkin'

By Emily Bryson York

Published: June 11, 2009

CHICAGO (AdAge.com) -- The coffee wars generated a flurry of advertising in May. McDonald's launched its first McCafe blitz, Dunkin' Donuts made its first concerted doughnut push in more than a decade and Starbucks began its first pure branding campaign. While it's too soon to say what the impact on sales has been, all three marketers saw a major uptick in buzz, as measured by Brand Index.

Dunkin' led McDonald's and Starbucks in buzz and value perception.

Brand Index, which tracks more than 1,000 brands by conducting 5,000 daily interviews from a panel of 1.5 million consumers, monitors key brand attributes, including buzz, value perception, quality ratings and customer satisfaction to compile its index (which has a range of -100 to 100).

Dunkin' began May with a 24, peaked at 33 mid-month and settled at about 32 this week. McDonald's started with a 15, peaked around 24 and had dropped off to 16 by June 9. Starbucks' campaign, which has been confined to newspapers and select outdoor markets in its initial phases, has been more cyclical. The company began May with a score of 1, shot up to 11 within a week and plummeted again. In the past week, the chain's buzz has shot up to double digits again.

Those numbers may seem low, but ratings vary dramatically by category. Within the fast-food sector, a good buzz rating is considered to be anything above 10. Ratings closer to zero mean consumers have heard an even number of positive and negative things about a brand.

"Over the last few weeks, Starbucks has generated buzz through a variety of channels, including our national 'Coffee value and values' campaign hitting its stride, beginning our sponsorship with 'Morning Joe' on MSNBC and being named No. 1 best coffee by the Zagat survey," Starbucks' senior VP-marketing, Terry Davenport, said in a statement. He added that the retailer's online activity, including using Facebook and Twitter to tout its efforts, has also built excitement among baristas in its stores.

Dunkin' did not immediately respond to a request for comment.

McDonald's spokeswoman Danya Proud said the burger chain has been "extremely pleased" with the results of its coffee push. In particular, she said, the chain's "McCafé Your Day" online competition with Visa has gotten more than 10,000 entries. That response rate makes it "by far the most successful online sweepstakes in the company's history," Ms. Proud said.

Starbucks tries 'a different tack'
But all three companies got a pretty strong jump in buzz, said Ted Marzilli, global managing director at Brand Index. Starbucks' jump, he said, had the "highest magnitude," especially because it was coming from about zero. He said Starbucks should be heartened that it not only made a splash when its competitors were outspending it but got a second spike in interest as McDonald's and Dunkin' were leveling off.

"They're probably going to be outgunned by McDonald's and Dunkin'," he said, noting that those brands spend more on advertising. "Starbucks is trying a different tack in last couple of months, getting people to think about bigger concepts. How expensive is a $3 latte when you think about other things like providing health care, working with farmers in areas where coffee is imported? That slightly different tack seems to be making a mark."

Mr. Marzilli said an increase in buzz can trigger shifts in other metrics, but not always. And as it stands, Starbucks is still struggling with its "value" perception, or whether consumers view the brand as giving them the most bang for their bucks. The chain has been hovering around -26, with a small spike last week that seems to have already corrected. McDonald's is just behind Dunkin' in value perception, around 25 to Dunkin's 26.

But when consumers want to treat themselves, all these numbers may go out the window. According to Brand Index, 43% of adults asked where they were most likely to purchase a "premium coffee drink" said Starbucks, 15% picked McDonald's, 11% sided with Dunkin' and 31% had no preference.

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Just a Quick & Urgent Job Posting

from a friend of mine that I've worked with a couple of times.

This is in Fort Wayne Indiana:

Casting for adult male age 55+ , all ethnicities, for TV commercial. Shoot to be in Fort Wayne during the day on May 28. Location TBD. Time TBD. Commercial will air in the state of Indiana for up to two years. Please submit recent photo to heather (at) punchfilms.com. This IS a paying job.

Send her your stuff, you get paid to be famous!

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Combining Forces

Over the weekend my wife hosted a "Thrift Style Fashion Show" featuring over a dozen area resale clothing stores and hundreds of dollars were raised to support a couple local charities. Here's a few more examples of partnering as part of your marketing efforts:

Basic Needs and Green Are Hot

The recession and concern over global warming are definitely having an impact on the causes companies choose to build new campaigns around.

Many domestic basic need charities are experiencing an upsurge in new partnerships. For example:
-- Mott's is giving a dollar to Feeding America when consumers arrange for actress Marcia Cross to give someone a wake-up call.
-- Kentucky Fried Chicken is fixing potholes in five cities in need of road repairs.
-- Walgreens is teaming up with AARP to provide free health screenings in 3,000 communities over the next two years.

On the environmental front, a recent study by Cone found that nearly 80 percent of consumers were as or more likely to buy environmentally responsible products now than before the recession.

Marketers are "hip" to that as evidenced by the deluge of program announcements I've received in time for Earth Day such as:
-- Tropicana and Cool Earth are empowering consumers who upload product codes to rescue 100 square feet of rain forest.
-- Payless Shoe Source is giving a dollar to The Nature Conservancy to plant trees in Brazil with the purchase of reusable shopping bags and a "green" line of shoes.
-- NBA Green was launched as part of an intergrated campaign between the basketball league and the National Resources Defense Council.

Cotton Inc. and the National Geographic Society are recycling jeans into insulation; Organic Valley is sponsoring Earth Dinners across the country; Campbell Soup is giving away tomato seeds so consumers can grow their own; the proliferation of programs this year is truly stunning.

(Source: David Hessekiel, Cause Marketing Forum, 04/15/09)

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Advertising Federation of Fort Wayne Addy's

Last night, we had our Addy Awards. 352 Entries. I'm just going to give a quick run down of winners including Golds, Silvers, Student Addy's, Judge's Choice and Best of Show. Congrats to all who entered and those that won!

In No Particular Order:

1. Labov & Beyond
2. Brand Innovation Group
3. Boyden & Youngblutt
4. Ferguson Advertising
   
5. Britton Marketing & Design Group
6. Asher Agency
7. One Lucky Guitar
8. Greg Becker
9. Jeff Dollens (Rocketman)
10. Floyd & Partners
11. Lincoln Printing
12. Excell Color Graphics
13. Katie Kline
14. Josh Ackerman
15. Amy Reff
16. Heather Ingram
17. Dannielle Goodrich
18. Aaron Anderson
19. Blake Genth
20. HPN Marketing Services
21. Dirty Whistler
22. The Nichols Company
23. Catalyst Marketing Design
24. Amanda Joseph
25. Kelly Coughlin
26. David Malicki
27. Alethea Geradot
28. Emma Staley

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Advertising Federation of Fort Wayne Meeting

Our annual Non-Profit Marketing Lunch & Learn is Thursday from 11:30am until 1:15pm at the Summit Club, high above the city. Click here for details and to reserve your seat.

Oh, and when I say Non-Profit, I'm not talking about the economy, I'm talking about the wonderful non-profit, or not-for-profit organizations that we support as they support our community, silly!

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The Power You Have

Too many people are unaware of the power that they have to influence, to change things, to keep things, to help.

Earlier this year, Fort Wayne Indiana lost the Lincoln Museum that has been in town since before I moved here in the 1960's. We found out too late.

Take a look at this from Seth Godin and I'll see you tomorrow:

Don't know what you've got till it's gone

IWantSandy is folding, as are a number of web companies. So is that restaurant you loved down the street. Users are outraged. Outraged!

When you find a service or establishment or product that gives you joy, it's tempting to keep it to yourself. Perhaps it's uncomfortable to recommend it to a friend (after all, you might seem silly) and even more uncomfortable to recommend it to a stranger (after all, you might seem like a shill).

Plenty of people hesitate before spreading the word about a political candidate or a business or a medical device. We're worried that we'll look silly, or that the place will end up being too crowded and now we won't be able to get in. Or perhaps we're concerned about losing our uniqueness...

Anyway, the outcry that accompanies the closing of one of these businesses should be enough to remind you that your hesitation has a cost.

It's simple, I think. In a world where consumers have so much power, we now have two responsibilities:

• If you don't like what an organization stands for, work actively to spread the word and force them to change

and

• If you will miss a product, a service, a book, a site or a professional when they close up shop, stand up, speak up and bring them masses of new business.

We get what we promote.

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Financial Melt Down Hits Local Retail Center

The Greater Fort Wayne Business Weekly newspaper sends out an afternoon email update. This afternoon they included a story regarding Indiana's largest mall, Glenbrook, in Fort Wayne.

General Growth Properties, the Chicago-based real estate investment trust that owns Glenbrook Square Mall, warned Monday that it may have to file for bankruptcy protection from its creditors.

The company said in a Securities and Exchange Commission filing that it is in danger of default on $900 million in mortgage debt due at the end of November. It has more than $3 billion due in 2009.

"In the event that we are unable to extend or refinance our debt or obtain additional capital on a timely basis and on acceptable terms, we will be required to take further steps to acquire the funds necessary to satisfy our short term cash needs, including seeking legal protection from our creditors," the filing said.

"Our potential inability to address our 2008 or 2009 debt maturities in a satisfactory fashion raises substantial doubts as to our ability to continue as a going concern."

General Growth is the second-largest mall owner/operator in the United States. It purchased Glenbrook Square in October 2003, paying $220 million for the 1.2-million-square-foot shopping center.

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October Advertising Federation of Fort Wayne Meeting

You are invited, click here for details!

'

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Job Opening

A local ad agency (Fort Wayne, Indiana) has an opening for an experienced Media Buyer.

Contact me by sending a resume to mediabuyer (at) ScLoHo (dot) net.

I'll pass along your info to the head honcho.

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Fort Wayne AdFed Lunch Reservation Deadline

We need your reservations by 3pm today. Click here for details.

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The Future of Newspapers is Here Now

I hate seeing bad news week after week about the newspaper business. For example, these headlines were in my email this morning:

Tribune Co. Edges Closer to Default

by Erik Sass

Sam Zell is finding less room to maneuver when it comes to servicing the $8.4 billion debt incurred by Tribune Co. in the employee-owned deal he engineered. Although the company has met all of its debt obligations to date, the possibility of default sometime in 2009 looms ever larger with each new negative earnings release. ... Read the whole story

Red Ink: Gannett Cuts 1,000 Staffers

by Erik Sass

In a further sign of the newspaper industry's woes, Gannett said it is planning to cut 1,000 jobs--representing about 3% of its workforce--in a memo to employees last week. The company will eliminate positions through a combination of attrition (leaving empty posts unfilled) and about 600 layoffs. All the layoffs will be complete by the end of this month, the company said. ... Read the whole story

I have friends that work for the local papers. Actually I have friends at nearly every media outlet and advertising venue in town due to relationships built over the years and also my role on the Board of Directors of the Advertising Federation of Fort Wayne.

In Fort Wayne we have two daily papers, with separate owners and they operate under a joint operating agreement which has been in place for years. They have separate news staffs, but joint advertising and operations staffs. (I don't know all the organizational details).

They have additional publications in the magazine world, where they compete with other area publishers. And they recently built a new press. Unfortunately, none of this will ensure their survival.

I can't accurately predict when it will happen, but eventually there will be one, not two papers. The subscriber base for the afternoon paper is continuing to die. The revenues overall simply are not going to be enough to support the overhead that they have with staff and operations.

This is not an isolated situation. What is isolated is that we still have two papers, when larger cities have only one, and even some of those have ceased printing.

Here's a bright spot for the Fort Wayne Newspapers. Their website. FortWayne.com

I did a comparison of local website traffic comparing the sources where people would go online for local news.

The top 3 websites are the Fort Wayne Newspapers site, followed by the television news websites. (There are two.) FortWayne.com beats the others by significant margins right now. But can they use their website to generate enough revenue to make up for the losses in revenue from the printed newspapers?

Again, I don't know their financials, and I really don't want to. I have antidotal evidence that they are hurting like the others in that business. Recently, I read of revenue losses in the industry of 30% or more on the paper side with increases from websites of 15%. Put those numbers together, and you are still losing money.

So what will happen, eventually?

In the short term, 4 to 10 years, we will only have one paper. And it's long term future depends on how well the company can restructure itself to balance its books. This will include staff cuts, increases in the website side of the business and perhaps other joint operations with other media.

The Heart and Soul of the Newspaper is local reporting, and as long as they can fit that into their budget, they have a chance. Otherwise, I'll be telling my grand kids about this thing we used to call the newspaper.

My plea to our local newspaper publishers and your parent companies, make the cuts now. Do it swift and with the future in mind. Plan for growth, not just survival, and wake up to the realities of what is happening to not just your industry, but all media and advertising venues.

By the way, we have a local media critic that has his critical take on this you might want to check out by clicking here.

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AdFed Fort Wayne Meeting This Week

If you are in the Fort Wayne area, we'd love to see you, (and the view from the Summit Club is fantastic too!

To view this email as a web page, go here.

GET ACTIVE WITH AD FED THURSDAY Get Active With Ad Fed is our First Meeting for all members and prospective members for the new year. SPECIAL ANNOUNCEMENT This Just In.... Join us as we welcome American Advertising Federation District 6 Governer-Elect Allison Robbins as she shares details on the upcoming Fall Conference, and answers your questions on the Addy's and other topics. Plus We Are Growing & Need Your Input On: Mentoring Students & Young Professionals Recognizing the work, achievements & creativity being done in Fort Wayne (Addy's & Awards) Improving our Impact on the Advertising & Marketing Community DETAILS: Buffet Luncheon 11:30a-1p ThisThursday August 21 @ The Summit Club 110 West Berry, Ft. Wayne Bring Your Ideas, Energy, Questions & Lunch Money (Special price only $15) RSVP at www.AdFedFortWayne.org (click here) or call 469-3907 Today Please. Also Save the Date for our September 18th Ad Fed Lunch

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Fort Wayne Radio Rankings

Due to restrictions by Arbitron, the details behind the numbers are not supposed to be simply given to the public. This information is sold to radio stations and advertising agencies and only those who pay (dearly) for the information can use it.

However, I believe I am safe in releasing the following which are the results of the spring 2008 Fort Wayne, Indiana survey.

These numbers are not what we use to sell or buy advertising, these are the "big picture". 12+ 6am to Midnight, 7 day a week, Average Quarter Share rankings.

This information will be appearing Monday on other websites and in newspapers, perhaps with more details.

So without anymore disclaimers, here's the results:

WQHK
WOWO
WLDE
WAJI
WMEE tied with WBTU
WBYR
WFWI tied with WXKE
WJFX
WGL
WNHT
WLW
WKJG
WFGA
WFCV
WCJC
WDFM
WXXC

What is also interesting is which stations numbers went up and which ones went down. These lists are in alphabetical order:

UP
WAJI
WFCV
WFGA
WFWI
WLW
WMEE
WOWO
WQHK
WXKE

SAME
WCJC
WDFM
WNHT

DOWN
WBTU
WBYR
WGBJ
WJFX
WKJG
WLDE
WXXC

Now these rankings should be taken with a grain of salt, however the advertising agencies often use Arbitron numbers to determine which stations to place their advertising on for their clients.

For those of you who wanted to know, there you are. If you want the real details, contact me, and depending on what you want to know and why, I can give you more information.

(I can tell you that the staff at my company, are all wearing smiles today.)

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AdFed Fort Wayne News This Week

Just a quick note that there will be a posting coming later this week for the first meeting of the 2008-09 Advertising Federation of Fort Wayne.

As a preview, mark your calenders for August 21st, 11:30-1pm at the Summit Club with a special reduced price of $15 for all. You do not need to be a member to attend.

Then in September, Thursday September 18th from 11:30-1:30 we have a special speaker talking about the legal ins and outs, dos and don'ts, etc. concerning copyrights, and other important info. It promises to be both entertaining and informative. Send me a note if you want to be on the mailing list. Scott@ScLoHo.net

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