change vol. 1 issue 4

DISCOVER THE SIX

QUALITIESOF

TRANSFORMATIONI N S I D E

Marketing Insights

Go Deep! With Cross MediaMarketing

Where the (Marketing) Work Gets Done

Wary of a Self-Fulfilling Prophesy

Obliquity

communication in this age of change

VOLUME 1 ISSUE 4AUGUST 2011

classic

classic

Lost your marbleslooking for a resource who can do it all under one roof?

We found them.Better yet, you’ve foundwhat you’re looking for.Finally.

online ordering platforms

digital printing

variable content capabilities

high quality offset printing

grand format digital printing

mailing & fulfillment savvy

responsive

on-time delivery

experienced

secure data handling

dedicated

plays well with others

knowclassic.comGet to know the productionplatform with technology & experience to spare.

opening word3

Have you audited your brand recently? What does your brand say to your loyal customers andwhat does it say to those you would like to know? Do your staff resources properly align withthe needs of your current and future customers?

In every issue, the pages of change are filled with storiesof companies that are making a leap from traditionalmarketing and communication strategies to thestrategies of the future. As highlighted in this issue’sarticle featuring Southern States (see page 14),understanding your brand is an important startingplace; once you have a baseline knowledge of thestrengths and weaknesses ofyour brand, the path forwardbecomes clear. SouthernStates is transforming theway it aligns its operationsand marketing struc-tures to meet the needs ofits customers, and it is leveraging some of the mostpowerful new marketing tactics to build its brand.These are exciting times at Southern States.

If you are working to engage your customers instronger, deeper relationships with your company, youwill enjoy learning how the NHL is leveraging thepower of cross-media marketing. In “Go Deep!” youwill read how new marketing tactics are shaping theway the NHL manages its three Ps (participation,portability, and personalization) in the delivery of itsbrand experience.

At Classic we take to heart the words that WalterGretzky passed on to his son, years before Wayne’sastonishing rise in the NHL: “skate where the puck'sgoing, not where it's been.” Through the years wehave helped our customers realize new potentialthrough the products and services we provide. Today,

we are working with them to develop new and importanttools that will drive marketing success.

Finally, we are excited to introduce our new internetpresence to you: knowclassic.com. We are building ourbrand through social media tools including a ClassicFacebook page, blogs, and a Twitter presence. Our goal

with these efforts is not to sell more of what we do, butto share with you more about who we are and whyClassic continues to be a leader in our industry. We areproud to share with you how we do it: through innova-tive solutions, through some of the best technology andprocesses, and most of all, through our remarkablepeople.

Please enjoy this issue of change. To all of ourcustomers we say, “thank you for the opportunity toserve you.”

Warmest regards. David Pitts

“Once you have a baseline knowledge of yourbrand, the path forward becomes clear.”

• August 2011change

CONTENTSPublisher and EditorTim Holt

Art DirectionBrent Cashman

Special ThanksKatie Williamshixon design

change is published bimonthly by classic graphicscopyright 2011 all rights reserved

For more information800.368.1056 knowclassic.com

O3 Opening Word

O4 Marketing InsightsTraditional Ads Play Key Role in the Smartphone Purchase Funnel

The State of Custom Content Publishing - 2011

O6 TransformationThe Six Qualities

1O Go Deep!With Cross Media Marketing

14 Where the (Marketing) Work Gets DoneThe Southern States Story

18 Wary of a Self-Fulfilling Prophecy

19 ObliquityBook Review

3

change • August 2011

classic

Lost your marbleslooking for a resource who can do it all under one roof?

We found them.Better yet, you’ve foundwhat you’re looking for.Finally.

online ordering platforms

digital printing

variable content capabilities

high quality offset printing

grand format digital printing

mailing & fulfillment savvy

responsive

on-time delivery

experienced

secure data handling

dedicated

plays well with others

knowclassic.comGet to know the productionplatform with technology & experience to spare.

opening word3

Have you audited your brand recently? What does your brand say to your loyal customers andwhat does it say to those you would like to know? Do your staff resources properly align withthe needs of your current and future customers?

In every issue, the pages of change are filled with storiesof companies that are making a leap from traditionalmarketing and communication strategies to thestrategies of the future. As highlighted in this issue’sarticle featuring Southern States (see page 14),understanding your brand is an important startingplace; once you have a baseline knowledge of thestrengths and weaknesses ofyour brand, the path forwardbecomes clear. SouthernStates is transforming theway it aligns its operationsand marketing struc-tures to meet the needs ofits customers, and it is leveraging some of the mostpowerful new marketing tactics to build its brand.These are exciting times at Southern States.

If you are working to engage your customers instronger, deeper relationships with your company, youwill enjoy learning how the NHL is leveraging thepower of cross-media marketing. In “Go Deep!” youwill read how new marketing tactics are shaping theway the NHL manages its three Ps (participation,portability, and personalization) in the delivery of itsbrand experience.

At Classic we take to heart the words that WalterGretzky passed on to his son, years before Wayne’sastonishing rise in the NHL: “skate where the puck'sgoing, not where it's been.” Through the years wehave helped our customers realize new potentialthrough the products and services we provide. Today,

we are working with them to develop new and importanttools that will drive marketing success.

Finally, we are excited to introduce our new internetpresence to you: knowclassic.com. We are building ourbrand through social media tools including a ClassicFacebook page, blogs, and a Twitter presence. Our goal

with these efforts is not to sell more of what we do, butto share with you more about who we are and whyClassic continues to be a leader in our industry. We areproud to share with you how we do it: through innova-tive solutions, through some of the best technology andprocesses, and most of all, through our remarkablepeople.

Please enjoy this issue of change. To all of ourcustomers we say, “thank you for the opportunity toserve you.”

Warmest regards. David Pitts

“Once you have a baseline knowledge of yourbrand, the path forward becomes clear.”


CONTENTSPublisher and EditorTim Holt

Art DirectionBrent Cashman

Special ThanksKatie Williamshixon design

change is published bimonthly by classic graphicscopyright 2011 all rights reserved

For more information800.368.1056 knowclassic.com

O3 Opening Word

O4 Marketing InsightsTraditional Ads Play Key Role in the Smartphone Purchase Funnel

The State of Custom Content Publishing - 2011

O6 TransformationThe Six Qualities

1O Go Deep!With Cross Media Marketing

14 Where the (Marketing) Work Gets DoneThe Southern States Story

18 Wary of a Self-Fulfilling Prophecy

19 ObliquityBook Review

4

August 2011 • change

marketing insights

Traditional Ads Play Key Role in the Smartphone Purchase Funnel

Google, in partnership with Ipsos OTX MediaCT, an independent marketing research firm, conducted a study in late 2010 to gain a better understanding of smartphone consumer behavior.

Interviewing over 5,000 U.S. online adults (18-64 years of age) who identified themselves as using a smartphone to access the Internet, The Mobile Movement study examines mobile habits and online activities—searching, shopping, and actions taken, such as making purchases.

www.printinthemix.com

Select findings:• Nearly nine out of 10 (89 percent) smartphone users say they use their

smartphones throughout the day.

• Search engine Websites are the most visited websites with 77 percent of smartphone users citing this, followed by social networking sites (65 percent), and retail websites (46 percent).

• Smartphones are a key shopping tool and are used across channels and throughout the research and decision-making process:

79 percent of smartphone consumers use their phones to help with shopping (comparing prices, finding additional product info, locating a retailer). 70 percent use their smartphones while shopping in the store. 74 percent of smartphone shoppers make a purchase as a result of using their smartphone in-store.

• Nine out of ten say smartphone searches result in an action (purchasing, visiting a business, etc.)

• Cross-media exposure influences smartphone user shopping behavior: 71 percent search on their phones because of an ad exposure— traditional, online, and mobile. Traditional media advertising is the top driver of online search. Nearly seven out of 10 smart phone users (68 percent) say that TV, radio, or print ads motivated them to perform a mobile search compared to mobile ads (27 percent) and online ads (18 percent).

SourceS: Google Mobile Ads Blog, Smartphone user study shows mobile movement under way, April 26, 2011 and eMarketer, How Searches on Smartphones Fit in the Purchase Funnel, May 11, 2011.

use their smartphones while shopping in

the store.

70

5


about: The research was conducted via a mailed survey targeting a random sample of companies across all industries. Eight thousand surveys were mailed and close to 200 were completed and returned, producing a +/- 6 percent degree of accuracy at a 90 percent confidence level. Among the responding companies were: AARP, Allstate Insurance, ASPCA, Boston Scientific, GE Healthcare, Hoosier Energy, MassMutual, Nationwide, TCF National Bank, University of NC. The research was conducted by the monthly subscription newsletter ContentWise, a source of news, information and research on the content marketing industry.

Highlights from the 11th Annual study:• Investing in higher-impact print publications: The

average number of publication titles per company fell from 2.3 in 2007 to 1.7 in 2010 and the frequency of the average title dropped from 9 issues per year to 6.1. Yet the average per-issue page count rose from 22.2 in 2007 to 29.4 in 2010. The study finds that this is be-cause marketers are investing in “less-frequent, higher-impact print publications.”

• Use of Color: Nearly nine out of 10 (88 percent) of companies used four-color production in printed custom publications, an all-time high.

• Custom magazines making a comeback: More than half (56 percent) of respondents say they are choosing to publish more costly magazines, as opposed to putting out newsletters (37 percent).

• Audience is customer-centric: Companies are focus-ing their custom publishing on external audiences versus employees (79 percent to 21 percent). The study finds that employee communication is increasingly met by electronic communications while print mostly is reserved for marketing vehicles.

• Decline in Number of Titles: The number of custom titles in 2010 was 110,174 – 3,000 less than 2009. Companies have focused on broadening the array of content marketing media beyond print to make room for new communication media.

• Circulation Soars: In 2010, average circulation per issue increased to an all-time high of 52,010 copies per issue, dwarfing the 19,595 circulation average of 1999, the year the study was initiated.

• Paid advertisements expanded for the third year in a row, with 30 percent of printed custom publications carrying them.

• Other Forms of Content Beyond Print: The most common alternative to custom print media being used are Website updates of articles (79 percent), e-news-letters (61 percent), and branded video (44 percent). Video proved to be the fastest gainer, up 7 percent in popularity over 2009.

Forms of branded content used (percent of Respondents)

content YeS no

Website updates 79 percent 21 percent

email newsletters 61 39

Branded video 44 56

RSS feeds 37 63

White papers 30 70

Virtual events 30 70

Podcasts/other audio

24 76

Mobile content 19 81

e-zines 18 82

Source: Industry Characteristics Study, ContentWise & Custom Content Council, April 2011

• Growing Popularity of Branded Video and Mobile: Companies say they plan to significantly grow their use of video. Video was the biggest gainer in 2010 and should see big gains in 2011 with nearly two-thirds saying they’ll produce more this year. Marketers also plan to increase spending on mobile, with 43 percent planning to increase their use of this on-the-go content delivery method.

THe STATe OF CUSTOM CONTeNT PUBlISHING - 2011The year 2010 saw a surge in emerging platforms for custom content, with video, mobile, and virtual events spending hitting an all-time high of $12.5 billion, according to “Characteristics Study: A Look at the Volume and Type of Content Marketing in America for 2011,” by the Custom Content Council and ContentWise. With this said, the annual study finds print still dominates the market, with $24 billion spent on print production and distribution, and $3.6 billion spent on other forms of content.

6


DISCOVER THE SIX

QUALITIESOF

“What we call a beginningis often the end, and to make

an end is to make a beginning. The end is where

we start from.”T.S. Elliot prominent 20th century poet

TRANSFORMATION by

Lorrie Bryan

6 7

• August 2011change • changeAugust 2011

he rock stars of science—notables including the real

inventor o f the Wor ld Wide Web, founders o f

Akamai and iRobot, and the leaders of the Human

Genome Project – gathered earlier this year for a symposium at

MIT called “Computation and the Transformation of Practically

Everything.” These uber intellectuals reflected on the evolution

of the information age in the last century and discussed the

transformations that new exciting research of this century

will yield.

To illustrate how far technology has come in recent

history, a prominent scientist noted that the computation-

al power of the computer that guided man to the moon

was literally embodied in the Furby, an inexpensive robotic

toy mass produced ten years ago.

T

Computation has changed finance, com-merce, politics, entertainment, architecture, biology,manufacturing, and, well...practically everything,these pioneers asserted. They also noted thateach landmark change seems to be eclipsed by agreater change in succession. In 1999 the HumanGenome Project made history when theysequenced a billion letters of human DNA in justone year. Ten years later biological researcherswere able to sequence 125,000 billion letters inone year.

And so it goes. We have experienced tremen-dous change in recent years, but more spectacu-lar quantum changes undoubtedly lie ahead.

Changes to the Conventional Business LifecycleFor businesses, this means change is a constant that necessitates we continually

transform…or perish. Life is inherently cyclical, and businesses have a lifecycle as well.Traditionally it has been marked by introduction, growth, maturity and decline. Not surprisinglythat lifecycle model has changed in recent years along with everything else. “Businesses have ashorter lifecycle due to globalization, increased competition and increased customer expectations,”explains Adam Rapp, a marketing professor at The University of Alabama. “Consequently, firmsmust transform – move with greater speed and become leaner and more responsive. They needto see the market changes before they happen and keep a close eye on competition and customerdemands. Firms need to be market-driving and not market-driven, be proactive and not reactive.”

The best way to develop responsiveness is to become more customer-oriented, according toRapp. “Firms need to remove cumbersome standard operating methods and entrenched attitudes

7


Computation has changed finance, commerce, politics, entertain-ment, architecture, biology, manufacturing, and, well...practically

everything, these pioneers asserted. They also noted that each landmark change seems to be eclipsed by a greater change

in succession. In 1999 the Human Genome Project made history when they sequenced a billion letters of human

DNA in just one year. Ten years later biological re-searchers were able to sequence 125,000 billion letters in one year.

And so it goes. We have experienced tremen-dous change in recent years, but more spectacular quantum changes undoubtedly lie ahead.

Changes to the Conventional Busi-ness lifecycleFor businesses, this means change is a constant that necessitates we continually transform…or perish. Life is inherently cyclical, and businesses have a lifecycle as well. Traditionally it has been marked by introduction, growth, maturity and decline. Not surprisingly that lifecycle model has changed in recent years along with everything else. “Businesses have a shorter lifecycle due to globalization, increased competition and increased customer expectations,” explains Adam Rapp, a marketing professor at The University of Alabama. “Consequently, firms must transform—move with greater speed and become leaner and more responsive. They need to see the market chang-es before they happen and keep a close eye on competition and customer demands. Firms need to be market-driving and not market-driven, be proactive and not reactive.”

The best way to develop responsiveness is to become more customer-oriented, according to Rapp. “Firms need to remove cumbersome standard operating methods and entrenched attitudes

DISCOVER THE SIX

QUALITIESOF

“What we call a beginningis often the end, and to make

an end is to make a beginning. The end is where

we start from.”T.S. Elliot prominent 20th century poet

TRANSFORMATION by

Lorrie Bryan

6 7

• August 2011change • changeAugust 2011

he rock stars of science—notables including the real

inventor o f the Wor ld Wide Web, founders o f

Akamai and iRobot, and the leaders of the Human

Genome Project – gathered earlier this year for a symposium at

MIT called “Computation and the Transformation of Practically

Everything.” These uber intellectuals reflected on the evolution

of the information age in the last century and discussed the

transformations that new exciting research of this century

will yield.

To illustrate how far technology has come in recent

history, a prominent scientist noted that the computation-

al power of the computer that guided man to the moon

was literally embodied in the Furby, an inexpensive robotic

toy mass produced ten years ago.

T

Computation has changed finance, com-merce, politics, entertainment, architecture, biology,manufacturing, and, well...practically everything,these pioneers asserted. They also noted thateach landmark change seems to be eclipsed by agreater change in succession. In 1999 the HumanGenome Project made history when theysequenced a billion letters of human DNA in justone year. Ten years later biological researcherswere able to sequence 125,000 billion letters inone year.

And so it goes. We have experienced tremen-dous change in recent years, but more spectacu-lar quantum changes undoubtedly lie ahead.

Changes to the Conventional Business LifecycleFor businesses, this means change is a constant that necessitates we continually

transform…or perish. Life is inherently cyclical, and businesses have a lifecycle as well.Traditionally it has been marked by introduction, growth, maturity and decline. Not surprisinglythat lifecycle model has changed in recent years along with everything else. “Businesses have ashorter lifecycle due to globalization, increased competition and increased customer expectations,”explains Adam Rapp, a marketing professor at The University of Alabama. “Consequently, firmsmust transform – move with greater speed and become leaner and more responsive. They needto see the market changes before they happen and keep a close eye on competition and customerdemands. Firms need to be market-driving and not market-driven, be proactive and not reactive.”

The best way to develop responsiveness is to become more customer-oriented, according toRapp. “Firms need to remove cumbersome standard operating methods and entrenched attitudes

and functions which often delay the implementation of much needed strategic change. In other words, remove bureaucratic hurdles and roadblocks to strategy implementation.”

Starting From the endAlthough decline marks the end of this conventional lifecycle, the end is also an opportunity for new beginnings and a new cycle of intro-duction, growth, maturity and decline. Elle Harrison, author of “Wild Courage—A Journey of Transformation for You and Your Business,” says that decline or dying is an essential first step on the transforma-tion journey. “It’s the time to look at what is ending, what is changing and what/who you want to be going forward. Come back to what you love and follow that energy,” she suggests. Although an obvious change in the working world may be the trigger for transformation, sometimes the call is more subtle—a longing for something more, a sense that you’re not fulfilling your potential, a lack of purpose or meaning—the first stirrings of discontent.

An international leadership coach, her passion is guiding leaders and organizations through change so that they can find purpose and meaning in their work. Departing from conventional business lead-ership ideology, Harrison instead explores the six qualities of dying, stillness, intuition, wildness, vulnerability and surrender relative to the transformation journey.

August 2011 • connect

8transformation

1. Costs are high, sales and profit are low

2. Little competition

3. Demand must be created

rapp’S advice: “ There are still lots of affordable opportunities in the area of social media that many firms still aren’t embracing.”

1. Costs reduced due to economies of scale

2. Sales and profits rise

3. Competition increases and prices decrease

rapp’S advice: “ You need to make sure consumers understand what you are offering and why it is better than everything currently available in the marketplace,” Rapp emphasizes. “Then when low-cost copies enter the market, you can retain your market share by having a stronger brand name and consumer identification.”

THe lIFeCy Cle IN 2011

Growth stage

Market introduction stage 1

2

The Journey of Transformation“Over the years as I guided various leaders through change, I began to notice similarities in their experiences. Each journey of transformation was unique, triggered by different circumstances and leading to distinct personal challenges. Yet, within these differences, I also started to rec-ognize certain patterns. Somehow, regardless of where their journeys began, all these leaders faced experiences that brought them face to face with these same six qualities,” Harrison explains. “In a sense, an encounter with each of these qualities became a threshold to take them deeper into their journey of transformation.”

Dying, stillness, intuition, wildness, vulnerability and surrender are not qualities usually associated with successful leaders and businesses, but Harrison suggests that now is a good time to venture into the wilderness

9


of our unconscious and discover little-known parts of ourselves—new, yet ancient, sources of creativity, power and wisdom—to help us navigate through challenging times. “When we hear the call for deeper change, we have a choice. We can resist it and struggle on with old habits, beliefs and traditions. Or we can turn into the journey of transformation and follow it through to a new reality.”

Harrison says that dying to old habits and identities is the first step because it creates space for something new to emerge. “It leads to an empty, in-between space where you can learn to trust stillness and wait attentively and patiently for the new world to take form. Intuition offers guidance through the murkiness of change, leading the way into new pos-sibilities and new life. Wildness helps you break free of old rules, beliefs

“ The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.”

– Albert einstein, father of modern physics and one of the most prolific intellectuals in human history

1. Cost are lowered as a result of production volumes increasing and experience curve effects

2. Market saturation causes sales to peak

3. Lots of competition leads to price drops and lower industrial profits

rapp’S advice: “ Acquiring new customers is too costly at this stage. Instead, keep those that you have, and make sure you are in every available channel and outlet.”

1. Costs become counter

2. Sales decline or stabilize

3. Prices diminish and profit becomes a product of production efficiency rather than sales

rapp’S advice:“ Define who you are. Understand and embrace your core competency rather than run away from it. This will lead to innovation.”

THe lIFeCy Cle IN 2011

and habits that were limiting your creativity and authenticity. Vulnerability, the willingness to feel and share feelings, creates a deeper sense of trust and community. And surrender? Surrender is the current running through all these qualities. Letting go of the need to control and direct life opens the way for radically new solutions to emerge.”

Harrison stresses that it’s important to ask yourself the big questions in order to find the solutions. “Take the time to ask yourself what you do best and how you can bring that into the world—what are my gifts, what are my passions, what can I contribute to the bigger story?” She also reminds us to also trust the stillness, seeing it as a gateway into deeper change. “Give yourself time to answer these questions. Purposefully en-gage your intuition, listen and be open. As you discover the answers, commit to them. And then surrender—let life show you the way.”

At first it may be difficult to trust your intuition because it taps into the mystery of life, some function of unconscious perception that we will likely never understand. It is by its very nature difficult to define—it’s not concrete, rational or measureable. But some of the greatest scientific in-tellectuals in human history sing its praises. Albert Einstein, who would have likely been a keynote speaker at MIT’s recent symposium if he were alive, said, “The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift…The only real valuable thing is intuition.”

Maturity stage3

Saturation and decline stage4

August 2011 • connect

10

11


we remember only four. At this rate, next year we’ll each be hit with 10,000 messages and we’ll be lucky if we remember just two. That’s a lot of wasted ineffective messages and a lot of wasted resources.

Savvy marketers aiming to break through the clutter and make their message one of the

memorable ones are quickly adopting a more precise and effective marketing method. In the information inundation age, going deeper rather than broader is proving to be an effective marketing strategy.

“We are finding new ways to pen-etrate all the noise and ensure the message is heard using new tools that create a more personal and engaging experience,” explains Karin Stroh, VP

of Marketing for XMPie, a Xerox compa-ny providing marketing solutions. “Using

a cross-media campaign, companies can communicate more directly and effectively

with each individual customer in multiple ways rather than blasting a general message out to everyone.”

Goodbye Spray and Pray MarketingFor decades, the SOP has been S and P advertis-ing. In other words, the standard operating pro-cedure for marketing has been spray and pray advertising. The objective was to spray large groups of consumers with information via TV, direct mail, radio, signage on the side of a bus and pray that someone would notice. This method ensures that the marketing message is widely distributed, and in an era of fewer messages this was an effec-tive way to reach potential customers.

But in an era where consumers are increasingly bombarded by messages, this method is increasingly less effec-tive. The United States Postal Service re-ports that the average person in the U.S. is sprayed by more than 5,000 messages each day. Of the 5,000-plus, we notice perhaps 54 of these messages. And at the end of the day,

With Cross Media

MarketingBy Lorrie Bryan


The NHl Goes DeepBusinesses looking for a model of how to go deeper can take a page from the playbook of the National Hockey League. Following the 2004-2005 lockout, the NHL adopted an ag-gressive marketing campaign aimed at engag-ing hockey fans on a deeper level with more frequent robust experiences. Targeting a pri-marily tech-savvy fan base, the NHL is opti-mizing their use of digital media marketing, and the results have been phenomenal.

• League revenue is rising for the fifth consecutive year.

• Annual revenue is expected to grow 14 percent this year, resulting in an 85 percent increase over the last four years.

• Sponsorship and marketing revenue is up 32 percent YOY (year over year).

• The NHL Winter Classic on Jan. 1, 2011 was the most viewed NHL regular season game in 36 years. (4.5 million viewers in prime time.)

“The NHL is experiencing unprecedented en-gagement across all platforms,” affirms Perry Cooper, the league’s SVP of direct and digital marketing. “We’re offering more depth, more of what fans want, with continual access to live scores and stats, unique video content and enriching commentary.”

Leveraging the powers of traditional media, digital media and social media, the NHL is suc-cessfully converting fans into brand evangelists. Most notably:

• The Stanley Cup was the #1 trending topic on Twitter in June 2010.

• The NHL GameCenter Premium for iPad was the iPad App of the Week during first two weeks of launch.

• A revamped mobile site averages 25 million WAP page views per month.

• Fantasy Hockey has 570 thousand participants, more than any other fantasy property.

• The NHL is rapidly approaching 1.7 million fans on Facebook.

“Rather than relying on traditional broad advertising avenues like TV, we are creat-ing one-on-one marketing opportunities that shorten the distance to the fans no matter where they are by offering a great experience on a variety of platforms. If we can continue to satisfy our fans then ad revenue and every-thing else will continue to take care of itself,” Cooper explains.

The Three PsCooper notes that the marketing strategy at the heart of this success is the Three Ps—par-ticipation, portability and personalization. “We are constantly looking for innovative ways to engage our fans and encourage participation, and we know that portability—i.e. smart-phone and iPad experiences—is becoming in-creasingly important.”

With an Apple iPad and subscription to GameCenter, hockey fans all over the world now watch their favorite hockey games anywhere they want at any time. A subscription provides ardent fans with dream-come-true content: full access

“ We are constantly looking for innovative ways to engage our fans and encourage participation, and we know that portability—i.e. smartphone and iPad experiences— is becoming increasingly important.”

– Perry Cooper, NHL, SVP of direct and digital marketing

12Go deep!

With an Apple iPad and subscription to

GameCenter, hockey fans all over the world

now watch their favorite hockey games anywhere

they want at any time.

13


to about 40 games per week, with TV and radio broadcasts available; in-game video highlights; and access to the NHL’s video archive, with thou-sands of highlights covering every day during the current season; extensive player profiles with video highlights and detailed in-game stats; and condensed versions of every NHL game.

Cooper says that collecting and analyz-ing data at every transaction is key to creating a deeper, more personal experience for each fan. “Everything is coded—we look at every definable area of behavior—and we tailor our marketing accordingly to make it as personal and relevant as possible.”

Print joins the mix with a growing licensed merchandise catalog circulation base. “Targeting current customers and new prospects with favorite-team content has been very successful. Segment-ing displaced fans that have an inherent access constraint has been a key strategy. Based on our match analysis, we are able to connect online pur-chases to catalog drops...the ROI is excellent. Cus-tomers tend to browse the book which converts to online transactions. This behavior is observed by most multi-channel marketers... especially those that tailor the experience with a strong online call-to-action,” Cooper adds.

The wonderful thing is that each transac-tion or engagement is an opportunity to collect data that will make future engagements even more relevant and produce greater results. Stroh notes that this is basically the way mar-keting was done prior to mass media. “In some ways, marketing is heralding back to the 50s, the era preceding mass media when market-ing was more of a one-on-one enterprise. Lo-cal store owners made recommendations di-rectly to customers based on that customer’s particular circumstances and buying habits,” Stroh explains. “The more information you col-lect, the more you can tailor your communi-cation with your customer and communicate with each individual on a deeper level rather than communicating to a wide audience on a broad general level.”

Relevance equals ResultsSo how important is personalization? A Mary-land college that formerly solicited new stu-dents with traditional generic direct mail packages quadrupled admissions and doubled enrollment by launching a multi-channel cam-paign that started with a personalized mailer

and e-mail directing the prospective students to a personalized URL (PURL).

Using variable data technology, the engag-ing personalized mailers included: a map from the student’s house to the college, the student’s name on a business card, a personalized mes-sage highlighting his or her intended major or area of expertise and images based on gender. Each customized mailer prominently displayed the recipient’s PURL that included their name.

Prospects could conveniently access their PURLs right on their smartphones (or com-puters) and view a personalized campus tour video, fill out pre-populated financial aid esti-mators and forms, and sign up for text updates on open houses and admission deadlines. De-pending upon their interactions, any of 20 per-sonalized follow-ups were possible. The PURL evolved throughout the enrollment process to remain a handy and valuable resource.

Citing this case study, Stroh notes that there wasn’t anything particularly difficult or costly about this campaign. “It was essential to start with good clean data, and continual tracking and analytics were important as well. We have the tools to easily process the data and the technology to use the data to create a deep and personal experience. The cost of this direct marketing campaign was actually less than in previous years, and the process freed up admission counselors to use their time more effectively.”

Additionally, the college received an in-crease in top-level applicants. The students reported they felt like they were being specifically targeted and person-ally recruited. “Customers want to be talked to. And the surest way to make certain they hear you is to make your message personal and rele-vant,” Stroh affirms. “With cross media mar-keting, you can get beyond the spray-and-pray numbers game and take your marketing to a whole new level—a deeper level than your competition.”

“Cross media is becoming bigger as tech-nology leads to innovative new media plat-forms that consumers become increasingly comfortable with. We’re committed to antici-pating where our fans are and ensuring we are there offering direct access to the NHL—keep-ing them satisfied with relevant and robust experiences,” affirms Cooper.

DID yOU KNOW:

The United

States Postal

Service

reports that the

average person in

the U.S. is targeted

by more than 5,000

messages each day.

Of the 5,000-plus, we

notice perhaps 54

and remember

only four.

THESOUTHERN STATESSTORYSTORY

by Katie Williams

he dramatic shift that took place in the U.S. economy in 2008 presented an unusual opportunity for 88-year old Southern States Cooperative to expand its market reach and gain momentumamong an increasingly diverse and growing customer base.

In spite of a soft economy, Southern States has increased trafficin its retail stores, launched a successful e-commerce initiative,and continues to attract a growing number of new fans and followers each month through its social media efforts. How did they do it? By embracing change andrealigning marketing efforts with customer needs.

“Despite a strong retail presence in the rural communities throughout our footprint, we knew we had an issue with low brand awareness,” said Houston Staton, Director of Marketing for Southern States. “We needed to find out why and determine the right steps to fix it.”

14we ask you

For more than 28 years Classic has taken a leading role in informing and educating customers about industry innovations, researchand developments. In this ongoing series, “we ask you,” we’re pleased to share marketinginsights from Southern States, one of the nation's largest farmer-owned cooperatives.

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Where the (Marketing)WorkGets Done

T

• changeAugust 2011

Since its inception as Virginia Seed Service in 1923, SouthernStates Cooperative has remained at the forefront of agricultural advancesthroughout its rich history. Over the 88 years Southern States has beenserving local farmers and farming communities, the share of the U.S.population living on farms has significantly declined in tandem with thedecline in agriculture’s central role in the economy. While farming-dependent counties once comprised most of the rural economy, only 20percent of U.S. nonmetropolitan counties were considered farming-dependent by the year 2000.1 Rapid advances in technology continuedto render farming less labor-dependent and more profitable. Finally, thecombination of suburban sprawl and a growing number of homeownersseeking a rural lifestyle or the opportunity to operate small farms thatcould be sustained by off-farm income marked a turning point forAmerica’s rural demographic.

“As the rural landscape continued to change, we recognized theneed to shift our focus as well – not to change what was working for ourloyal customer base of more than 300,000 farmer-owners, but to reacha broader audience,” said Jennifer Gwyn, Manager of Branding andMarketing at Southern States.

With the help of Richmond-based Barber Martin Advertising,Southern States conducted a brand audit, surveying several thousandfarm and non-farm households within specific zip codes where they hadretail stores.

1USDA: The 2Oth Century Transformation of U.S. Agriculture and Farm Policy;www.ers.usda.gov/publications


“This was an important initiative for us,” Staton said. “We werefortunate to have the full support and encouragement of our CEO andsenior management team in conducting market research. Many compa-nies don’t understand how critical this information can be for redirectingefforts and resources to sustain and grow market share.”

The brand audit confirmed Southern States suspicions that it didindeed suffer from a significant lack of awareness particularly among thesmall farm and non-farm households within its surveyed populations.

“The audit produced exactly what we were looking for,” saidBarber Martin Advertising Executive Vice President, David Owen. “It con-firmed what we already knew – that Southern States has an extremelyloyal repeat customer base. But it also pointed out areas that could bestrengthened. Most importantly, it helped us understand that SouthernStates did not have to reinvent itself. Instead, it needed to repositionmessaging and media to engage distinct market segments that it wasn’tcurrently reaching through its advertising circulars or storefronts.”

“Working closely with David and our marketing leadership, webegan to look at each customer individually instead of simply focusingon what they all had in common,” said Gwyn. “We indentified three dis-tinct market segments: producers who grow crops for a living; livestockand dairy producers; and rural living customers. The rural living cus-tomer is the fastest growing segment in our footprint and the area wherewe want to focus our growth.”

“Southern States has a great story to tell,” Owen stated. “Thefeedback we received from Southern States loyal customer base centeredon the organization’s authenticity and the educational resources andexpertise store owners, and managers provide. In fact, store owners andmanagers across the footprint average 20 years or more at the samestore. The Southern States experience is about developing and growingrelationships, that’s what its customers value most.”

The company’s new brand statement is a direct result of thatauthenticity, according to Steve Patterson, Vice President of Marketing forSouthern States. “Our research told us that we had a good brand. Wedidn’t have to authenticate the brand; it already stood on its own.However, we did need to raise awareness around who we were and whatwe did. So we changed our brand statement to ‘Farmer owned since1923’ which plays on our strength and immediately tells you what busi-ness we’re in.”

Patterson noted that the brand audit was the first to be conduct-ed in the company’s long history, but an important step in driving theorganization to become more customer-centric. “Historically we havebeen more operationally focused,” Patterson said. “The brand audit was

the foundation for a number of important strategic changes we’ve madethis year.”

The first step in ushering in change was to restructure SouthernStates retail operations to align staff resources with customer type. Thenext step was to restructure the marketing department by customer type.

“Previously marketing was structured to support the various divi-sions: crops, farm and home, feed, petroleum, etc. But that’s not a marketingstructure,” Staton said. “Marketers need to be focused on customers.”

Southern States identified both macro and micro segments amongits producer class (grow crop customers and livestock/dairy customers)and its rural lifestyle segment (equine, gardening, lawn care and pet carecustomers). In an effort to reach these new and redefined market seg-ments, Southern States took a comprehensive approach, revamping itsmarketing efforts and focus. Working with David Owen and his team atBarber Martin Advertising, Southern States launched multi-media pilotcampaigns in markets including Greensboro, NC and Richmond, VA thatincluded radio, network TV and print ads. A popular refrain used through-out campaign materials: Where the Work Gets Done could just as easily

apply to Southern States marketing team and their committed partners. Another important element of the campaign was the development

of engaging, consistent and interactive signage in the retail stores.Southern States turned to its long-time partner Classic Graphics to devel-op a company-wide system for ordering and displaying in-store signagethat would ensure brand consistency across all locations.

“Classic was instrumental in providing the uniformity we neededat the point-of-sale,” Patterson said. “They provided the guidance andcapabilities we needed to produce a uniform signage package for ourstores as well as one-off signage for single locations and events.”

“In the past our signage was haphazard at best from one store tothe next,” Staton said. “Now when we walk into our stores and see thisnew signage package throughout, it’s consistent, it’s professional and it’swell done.”

Southern States also understood the importance of integratingsocial media into its overall marketing strategy. The company created afulltime position devoted to developing and growing its social mediapresence, responding to customers in a timely manner and posting newsand information on a regular basis.

“We launched our Facebook page in December 2010,” Statonsaid. “Three days before Christmas we had 1,500 fans. I predicted we’dhave ten or twelve thousand in the next three months. Today, we havemore than 26,000 fans and are growing at a rate of about 1,000 newfans a week.”

“One fear people have is what if somebody says something negativeabout us on Facebook,” Staton said. “Well, guess what – they’re saying itanyway. Facebook provides us an opportunity to address the situation andimprove upon it. That’s a capability we didn’t have before.”

The Southern States Facebook page has experienced over twomillion post views to-date. They also embraced Twitter which provides astrong channel for communicating with co-op members and customerson a broad range of educational and operational topics.

“Today we touch more people through online media than we evercould through any other media,” Patterson added. “Social media was thespringboard that took us to an entirely new level on the web.”

Southern States recently launched a new e-commerce section ontheir website which has seen steady growth in sales volume. We feel reallygood about our web strategy,” Staton said. “Much of our loyal customerbase is older. We knew we needed to reach out to a younger demograph-ic and our website and social media strategies have allowed us to dothat effectively.”

52% of Southern States Facebook followers are women and 48%are men. Among the women, about 40% are between the ages of 25 and45. “One of the things we learned from our brand audit is that the medi-an age of our customer base is upwards of 52 years old,” Pattersonnoted. “Previously our media of choice was flyers and circulars. But weknew we needed to greatly diversify and expand our use of media toreach a broader and younger audience.”

Going forward, Southern States will continue to leverage its onlinepresence to continue to build its public profile, create online communi-ties and drive traffic into retail stores. “The beauty of the web is that ithas given us an additional interaction with customers that previouslycould only be obtained through bricks and mortar,” Patterson said.“Online media has brought us more lift than any other customer contactpoint outside of our retail stores.”

We’re interested in hearing your company’s marketing success story.If you would like to be featured in an upcoming issue of change, give us a call at 800.368.1056 or visit us online at www.knowclassic.com.

16we ask you

17


“The brand audit was thefoundation for a number of

important strategic changeswe’ve made this year.”

STEvE PATTERSOnSOUTHERn STATES vP OF MARKETInG

FARmiNG’S cHANGiNG ROlE iN THE NATiON’S EcONOmy

19OO41 percent of workforce employed in agriculture

193O21.5 percent of workforce employed in agriculture; Agricultural GDP as a share of total GDP, 7.7 percent

194516 percent of the total labor force employed in agriculture;Agricultural GDP as a share of total GDP, 6.8 percent

197O4 percent of employed labor force worked in agriculture; Agricultural GDP as a share of total GDP, 2.3 percent

2OOO/2OO21.9 percent of employed labor force worked in agriculture(2000); Agricultural GDP as a share of total GDP (2002), 0.7 percent

Source: Compiled by Economic Research Service, USDA. Share of workforce employed in agriculture, for 1900-1970, Historical Statistics of the United States; for 2000, calculated using data from Census ofPopulation; agricultural GDP as part of total GDP, calculated using data from the Bureau of Economic Analysis.

• changeAugust 2011


18guest columnist

Wary of a Self-Fulfilling Prophecy– Mark Potter, Publisher of CANVAS Magazine

The audience was predominately new-age marketers who were well versed in the latest tools and were committed to measuring every-thing from ad spending to the fresh pot of cof-fee in the cafeteria. Our speaker noted this by saying, “You guys are a whole lot smarter than I am.” He went on to mention that he was kind of “old school” and that he didn’t really under-stand all the sophisticated stuff that marketers were doing today.

Afterwards, I was sitting with the speaker and he said to me, “Is this the way it is?”

Without needing further clarification, I knew exactly what he was talking about. I re-plied, “Yes. The short-term pressures to mea-sure everything are enormous.”

He looked at me, sighed and said, “The last decade belonged to the accountants. This decade belongs to the visionaries.”

The moral of the story is that marketing has long fought for its rightful place. However, the short-term pres-sure and the constant need to measure can quickly become a self-fulfilling prophecy. In other words, if we have a laser-like focus on the ROI of every single thing we do, we most likely aren’t seeing the big picture.

I have a bunch of friends who play golf, and some of them are downright fanatical

about the sport. Often I see these guys sporting the latest in club technology. Screw technology, perim-eter weighted irons, or some new white-headed driver—it seems like there is a new gimmick every other week. Their relentless pursuit of lower golf scores is almost comical. The clubs may feel good for a round or two and give them a short-term boost in confidence. However,

I have yet to witness a significant long-term decrease in their scores.

I have some news for my golfing buddies. “It ain’t the clubs boys! It is the player holding the clubs that matters.” This idea that we can invest in some sort of short-term tool to pro-pel us ahead of the competition simply doesn’t hold water. Granted, there are some amazing tools out there, and my organization subscribes to many of them. However, the tools are worth-less without an unwavering commitment to the markets we serve.

Marketing is about building deep-rooted relationships with specific segments of people. To develop real relationships in the world, as it is today, we have to create trust. In turn, when building trust in any relation-ship, we must be willing to share more of ourselves and invest in the long term. Mar-riage, business partnerships, friendships, and brands are all forms of relationships. They all take time and cannot be measured in some sort of speed-dating ritual.

The greatest brands of all time are inti-mately involved in their communities. They started out defined by the markets they served, but, in time, they developed trust and were soon defining the markets they served. That is the power of branding, and it may be difficult to accurately measure that in the moment.

Marketing is everything. Most importantly, marketing is about the relationship you have with the world you serve. Regardless of the vehicles we use to connect with our commu-nity, it is critical to be engaged in an honest and trustworthy relationship. Accordingly, all good relationships have solid two-way com-munication that includes an unparalleled level of understanding and trust. Now, I am not interested in condemning the use of new-age tools and measurements. I am, however, con-demning the use of such tools without truly caring about your market. True empathy is not necessarily something you can teach, but you can’t market without it. And we can’t succeed without marketing.

“…If we have a laser-like focus on the ROI of every single

thing we do, we most likely aren’t

seeing the big picture.”

I was sitting at a conference full of powerful marketing profession-

als. The keynote speaker was a big-named CMO who has known

nothing but success in building brands and sustainable competitive

advantage. He spoke of marketing’s rightful place at the big table and

asserted that marketers will be considered more often for the corner

office. He talked about a marketer’s mindset and how taking care of a

brand started with becoming an intimate part of a specific community.

19


book recommendation

Obliquity is the principle that complex goals are best achieved indirectly. In his new book, John Kay, explains why the happiest people aren’t necessarily those who focus on happiness, and how the most profit-orientated companies aren’t usually the most profitable.

“Obliquity” is a unique and impactful book for this time. Our unrelenting focus on short-term goals and our sometimes arrogant idea that we have the answers has resulted in a difficult and confusing time. Kay insightfully suggests that if you want to go in one direction, the best path may actually involve going in another. Us-ing a variety of unique examples, “Obliquity” ex-plains how the best way to achieve any complex or broadly defined goal is the indirect way. As Kay points out, we rarely know enough about the intricacies of important problems to tackle them head-on. And our unpredictable interac-tions with other people and the world at large mean that the path to our goals—and some-times the goals themselves—will inevitably

change. We can learn about our objectives and how to achieve them only through a gradual process of risk taking and discovery—what Kay calls obliquity.

Research has shown that companies whose goal is defined by creating excellent products or services are more successful than compa-nies whose stated goal is increasing profits. Although it may seem to run against the grain, the concept is solid and motivating. “Obliquity” is a must-read for anyone looking for answers in a questionable environment. We highly recommend it.

Using a variety of unique examples, “Obliquity” explains how the best way to achieve any complex or broadly defined goal is the indirect way.

Boeing was a dominant force in the aeronautics industry prior

to 1998. The executives of the business would “eat, breathe

and sleep the world of aeronautics.” After building the 747,

profits soared. However, when a group of new executives took over

in ’98, their focus was on increasing shareholder value and the

company’s performance plummeted.

Obliquity — Author, John Kay

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