1. Ads&Ideas Fall 2008
Los Angeles y New York y Chicago y Detroit y San Francisco
www.jamesgelliott.com
Company
Do’s and Don’ts for Rocky Times
news
President’s Letter leader should do—and NOT do—when things
go south:
New ClieNts
The James G. Elliott Company has re- 1) The most important single thing is vis-
These are surely interesting
ible leadership. The owner of the company or
cently added several new clients to the times. Not only are online
the head of the ad sales department needs to
and other media draining
company’s portfolio:
show a direction and a confidence in getting
dollars from the magazine
the New Republic: One of the most to that destination. Sellers need leadership and
business, but also there is
prestigious political thought-leader they need to know that the leader has a plan
tremendous uncertainty
magazines in the U.S. today, The New (whether or not they really do). One of the
about the possible effects of
most important things for the leader to do is to
the economic crisis on all
Republic, has outsourced their adver-
make sure morale is kept high. When a seller
advertising. Many publishers and ad directors
tising sales operation to the James G.
is clearly down, it is important for the leader to
accustomed to more favorable sales environ-
Elliott Company.
talk to that seller and try to be empathetic to the
ments are finding that their “tried and true”
independent Community Banker’s current situation. Sellers are similar to actors
techniques are not producing the kinds of re-
Association: The ICBA is the nation’s in that they have to be up to deliver their lines.
sults they expect. They are being held account-
When sellers are clearly depressed, the odds of
able for commitments made in sunnier days,
voice for community banks. James
them making sales dramatically decline.
and the stress of failing to make their numbers
G. Elliott Co. Inc. has been retained to
My company has a ship’s bell in each of our
is causing serious anxiety up and down the line.
handle ICBA media properties, includ-
offices. When someone makes a sale, they ring
Because I’ve run my advertising sales
ing; Independent Banker Magazine,
the bell. Sure it’s hokey—but it works. This
company for close to 25 years and have been
ICBA NewsWatch Today daily newsletter
alerts the other sellers that somebody has had
through some bad times, I have learned some
and ICBA Washington Report. a success, which can sometimes be contagious.
lessons that you may find useful. My hope is
We make a big deal out of the person ringing
that you may be able to avoid some pain during
National Petroleum News Maga-
the bell—not only other salespeople, but the
the current slowdown by reading about some
zine: NPN is the leading petroleum
management turns out to shake hands and offer
lessons my company had to learn the hard
information source and respected by
congratulations. You’ll find that this definitely
way in past downturns. Many of these lessons
the industry for 90 years. M2Media360
increases the feeling of camaraderie within an
sound like clichés, but there may be something
has commissioned the James G. Elliott office.
your organization can use somewhere in here.
Company with their sales and market- If you would like to talk further about any of 2) It is vital to set realistic goals and to revisit
ing responsibilities. these topics, please feel free to call me. We are those expectations on a regular basis. This
directing this specifically at advertising sales, is an important area and somewhat of an art
New HiRes
but it probably has applications for the broader form because you don’t want salespeople hiding
We’re pleased to announce these new publishing business as well. behind bad times while accepting no account-
additions to our sales staff: Just as sailors learn more in rough seas than ability. At the same time, you don’t want to be
calm, so leaders learn much more in tough
• Glenn Datz and Nadine Fischetti overly harsh in those expectations when it is
times. Learning to say “no” is a crucial man- simply not possible to meet them in today’s en-
to our L.A. office
agement skill that we don’t need to practice so vironment. We’ve learned to really spend time
• Joe wholley to our Chicago office
much in good times. Motivation and goal- with the individual salesperson to understand
• Robert Begley, Bob wagner and setting become much more important when the shape of the business as opposed to just
Reina Miller to our New York office things are falling apart. The good news is that getting reports. And it’s really important for the
managers can emerge as more effective leaders leader not to take frustrations out on the seller
after they have been tested. if, in fact, it’s not justified. This is probably the
James G. Elliott Co., Inc. When revenues drop, our first instinct is hardest thing to do in a sales company.
626 Wilshire Blvd., #500 to cut back on expenses. That’s good! There
3) It is very important to stay in touch with
Los Angeles, CA 90017 is almost always some fat that can be excised
customers who may be inactive at the moment
tel: (213) 624- 0900 without much pain. Cutbacks can actually be
as they deal with their own tough situation.
healthy when tough times cause us to reexam-
fax: (213) 624-4389
The tendency in bad times is to simply move
ine our processes to find efficiencies.
email: j.elliott@jamesgelliott.com
on to someone who might have some dollars
Here are a few specific things I believe a
www.jamesgelliott.com

2. 7) Do not dismantle infra-
and ignore those that don’t. We ary times would maintain and
Today’s b-to-b marketing
structure to solve a short-term
have found that if our sellers increase their sales and profits
decision makers have learned
problem. Many publishers
stay in touch with their clients not only during the down-
the lessons taught during past
in bad times, those clients often have experimented with closing turn, but in the years to come.
economic upheavals. Meeting
don’t forget that courtesy and offices and converting their McGraw Hill’s Laboratory of
a recessionary climate with ag-
understanding. They often salespeople to independent Advertising Performance (LAP)
gressive advertising is, histori-
reciprocate with additional reps, or just letting salespeople quantified the benefit in 1985:
cally, a way to grow business
advertising dollars when things work from home. I believe that companies which maintained
during a recession and main-
turn around. is a fundamental error on many or increased their advertising
tain continued growth after
levels, and it rarely works. budgets during a recessionary
the recessionary period ends.
4) Travel expenses can usually
There is a great deal of research period experienced average
A study conducted by BtoB
be tightened up—a lot! We
that indicates that salespeople, sales growth of 275 percent
Magazine earlier this year finds
have had much experience in
particularly in a non-tangible over the preceding five years.
that most business-to-business
retraining new employees to
sale, need comradeship in The 2001 Yankelovich/Har-
marketers are determined to
think of saving money when
order to keep up their spirits. ris study found that nearly
hold or increase their market-
they travel. This is especially
Remember, a good salesperson all executives polled agreed
ing budgets during 2008.
true when we hire people from
is socially optimistic, but can that keeping current as well as
Given worries about a U.S. recession this
larger publishing companies.
become very discouraged if the investing to remain competi-
year, how have you recently revised your
Although they may try to find
news is always negative and tive are important in a down
original 2008 marketing budget?
the best fares for their personal
they have no one else to share it economy:
travel, it often doesn’t occur
with. In my opinion, few people
to salespeople to take the very “Even in a down economy…”
Up 12.3%
have the necessary organiza-
simple steps that can save • 99% agree…it’s important to keep
tional and focus skills to work
hundreds of dollars per trip for abreast of new products and services for
within their own home envi-
their company. For example, your business
No Change
ronment. Besides, the home is Down 29.4%
58.3%
it is critical to book tickets • 97% agree…it’s important to
supposed to be a place where
early to take advantage of big continue to invest to remain competitive
people regenerate their batter-
discounts. We are able to save in the future
ies, not where their batteries are
up to 75% on ticket costs by “When you see a company advertising in
drained. Even when someone
having a policy that our sellers BtoB online survey of 684 B-to-B
a down economy…”
has the right skills to run an Marketers, 1st Qtr 2008
must book trips at least two
advertising sales business, it • 86% agree… it keeps them top-
weeks in advance, whenever
doesn’t necessarily mean the I’d like to briefly recap the of-mind when you make purchase
possible. Also, flexibility is
rest of the family can deal with recent ABM release, “The decisions
crucial, in terms of both time
the stress of living with that Importance & Value of B2B • 86% agree… it makes you feel more
to travel and use of airports
business in their living room Advertising During Times of positive about that company’s commit-
surrounding the destination.
every day. Economic Uncertainty.” In ment to its products & services
For instance, when traveling to
Also, any decision to adopt preparing their presentation, 2001 Yankelovich/Harris Study, 505 respondents
San Francisco, it is consider-
an outsourced sales model the ABM reviewed pertinent In 2002, Pennsylvania State
ably less expensive to fly into
should be the result of analysis research on this topic spanning University’s ISBM Report con-
Oakland and just as convenient
and thought—never a knee- nearly a century, from a 1923 cluded that, “The greater the
to get down into the city of San
jerk cost-cutting measure. It Harvard Business Review re- proactive marketing of a firm
Francisco from there.
can be a great solution, but it port up through the 2008 study during a recession, the better its
5) In the area of entertain- has to be done right. conducted by BtoB Magazine. a) market performance and b)
ment, “expensive” doesn’t Harvard Business Review’s business performance.” Find-
These are a few pointers that
always equate to “memorable.” 1923 report of 200 companies ings from this study emphasize
we have found useful in getting
It may take some creativity to found the largest sales increases the value of risk taking and as-
through tough times. Whether
entertain less expensively, but reported by companies that sertive marketing investments
you are an old salt who has
it really can be done. There are advertised the most during on market performance during
been through this several times
plenty of unique venues where the recessionary year. In 1949, recessionary times and beyond.
before, or a new leader facing
clients can be entertained that 1954, 1958 and 1961, Buchen The ABM concludes that
these challenges for the first
are not necessarily the most Advertising Inc. released advertising aggressively in a
time, I would welcome your
expensive restaurant in the tracking studies of business to recession can:
comments. And, if I can help
city. Often, city clubs provide business companies, reporting
you, please feel free to call me • Boost sales and market share
a far more reasonable way to that sales and profits dropped
personally. n
entertain. For example, my • Open a lead on more timid competition
off “almost without excep-
salespeople in Los Angeles have tion” at companies that cut • Skillfully reposition a product to take
“When times
used the Magic Castle (www. back their advertising. Fur- advantage of new purchasing concerns
magiccastle.com) for years, thermore, Buchen found that,
are bad, you • Give the image of corporate stability
with great results. post-recession, those compa- within a chaotic business environment
nies continued to lag behind
must advertise”
6) Be careful! There is a real • Give an advertiser the chance to domi-
companies which maintained
danger of going too far with nate the advertising media n
their advertising budgets.
cuts. The sun will rise again “The Importance & Value of
In the mid 1970s, the Ameri-
someday. We must not cut out B2B Advertising During Times >Susan Weiss has over 20 years of experi-
can Business Press Study con-
the basics of ad sales. Cutting of Economic Uncertainty.” ence in the research field. She is Research
cluded that companies willing
back on essential sales exposure Director for the James G. Elliott Co. Inc.
- American Business Media, 2008
to adopt an aggressive market-
mechanisms such as SRDS is a
By Susan Weiss ing posture during recession- member of
mistake.