A Value-Based connection: Aligning Commercial Strategy with Sales Execution
2011 SENA Advertising Strategy V 20 linkedin
1. 1
Shell Energy North America
Advertising and Communications
Strategy
James Brown
Director of Marketing Strategy
Version 1.29
2. 2
Today’s Objectives
Introduce New Advertising Strategy
Advertising Objectives – Specific marketing goals
Communications Plan – Integration with other communications tools
Measuring Results – Statistical methodology
Answer Important Questions
Why is this new strategy important?
Why do we need it now?
What are the financial benefits?
What do I need the SVPs to do differently?
3. 3
Rationale for Change – Advertising Strategy
Current SENA Approach to Advertising
Advertising Objectives – Reactive vs. Proactive
< 20% of advertisements are initiated due to specific marketing
objectives
< 10% of placements initiated by advertisers, not SENA
Communication Strategy – Independent vs. Integrated
> 80% of adverts created as independent communication pieces
Rarely linked to the sales and marketing process
Measuring Results – Subjective vs. Objective
Most SENA advertising placement decisions are made without point s
depend on anecdotal methods for calculating ROI
No established baseline to measure success
No point of comparison with competition
4. 4
A New Approach
NEW SENA Advertising Strategy
Advertising Objectives – Proactive vs. Reactive
> 50% of adverts aligned to achieve specific marketing objectives
> 80% of placements initiated by SENA, instead of advertisers
Communication Strategy – Integrated vs. Independent
Advertising integrated as a component of customer communications plan
Customer Communications Plan includes: Advertising, Personal Selling, PR, Service
& Support Communications (Contracts, Legal, Operations, Finance)
Linked to the Sales & Marketing Process of “Advancing the Sale”
Measuring Results – Objective vs. Subjective
Implement statistical methodologies and baselines for calculating ROI – GRPs
Establish tools to measure effectiveness & efficient placement of ads
2012 – Competitive benchmarking of advertising strategies and resources
5. 5
Advertising Objectives – Proactive & Specific
SENA Advertising Objectives
Strengthen the Customer Connection
Perception Change – Customer Experience (CS, SGP)
Thought Leadership – Dodd-Frank, Market
InformationReports
Grow the Customer Base
New Leads – Risk Mgt., Environmental, Gas, (Power?)
Division Advertising Objectives
Grow the Customer Base
New Leads – Producers (Gas Growth), C&I (New CVPs),
Utilities & Producers (Shale Plays)
Customer Advertising Objectives
Strengthen the Customer Connection
Objectives will vary upon request
SENA
50%
Divisions
35%
Customers
15%
Advertising Budget
6. 6
Communication Strategy – Integrated Channels
Pre-Purchase Purchase Post-Purchase
RelativeImportance
Low
High
Personal Selling
Press Relations
Advertising
Service &
Support
ADVERTISING is one of many communication channels in our new approach
7. 7
Communication Strategy – The Toolkit
Advertising Personal Selling Public Relations Service & Support
FAQs FAQs FAQs FAQs
Fact Sheets Fact Sheets Fact Sheets Fact Sheets
Email Email Email Email
Speeches Speeches Speeches Contract
Tradeshows Tradeshows Tradeshows Invoice
Sales Sheet Sales Sheet Opinion Editorials (OpEd) Margin Letters
Print Ads Print Ad (Reprints) Media Kits Change of Address
Brochures Brochures Annual Reports Discrepancy Resolution
Events Events Charitable Donations
Flash Video Flash Video Lobbying
Web Library Web Library Community Relations
Shell Energy Connect Shell Energy Connect Executive Speeches
Directory Ad Sales Presentations Mastio Results
Shell Energy Connect Customer Sales Meetings
Signs & Banners Telemarketing
E-Marketing Entertainment
Web Advertising Customer Business Meetings
Social Media (i.e. Facebook)
E-Direct Mail
E-Newsletter
Sponsorships
Branded Premiums
Branded Gifts
• Scale Economies – Many tools are leveraged across multiple channels
• Surgical Application – Better focus on finding the right tools for job, instead
of taking the “Kitchen Sink” approach
8. 8
Measuring Results – Objective Measurements
Gross Rating Points
Target Market – Number of customers to be targeted by communication channel
Reach – Number of customers that have been reached at least once (expressed as a percentage target
market).
Frequency – How often, on average, they have been exposed to one message (impressions)
Total GRPs (Gross Rating Points) – A way of evaluating different communication channels to measure
exposure:
Total GRPs = Reach X Frequency
Example: 120 GRPs = 30% of target X 4 impressions
Market Type Annual GRPs Weekly GRPs
Business to
Business
Established CVP 600-1,600 25-50
Introductory CVP 1,200-3,600 50-150
Consumer Goods
Packaged Goods 1,000-5,000 75-250
Retail/Service 2,000-10,000 100-350
GRP Standards for Business to Business Firms
SENA
Point of
Comparison
9. 9
Measuring Results – Objective Metrics
Customer
Communication
s
Percent of
Target
Frequency GRPs Objective
Advertisement 10 4 40 CVP Awareness
Editorial 10 4 40 Market Expertise
SENA.com 5 12 60 Customer Education
SEC Mkt. Info. 2 200 400 Market Expertise
Speeches 1 4 4 Trade Support
Total
GRPs
544
Gross Rating Points
=
10. 10
Today’s Objectives
Introduce New Advertising Strategy
Advertising Objectives – Specific marketing goals
Communications Plan – Integration with other communications tools
Measuring Results – Statistical methodology
Answer Important Questions
Why is this new strategy important?
SENA needs to communicate key messages (Perception changes in service, thought
leadership in Risk Mgt.)
Why do we need it now?
Influence Mastio Survey, Position Risk Business after Dodd-Frank
What are the financial benefits?
Scale Economies & Lower Total Cost
What do I need the SVPs to do differently?
Support strategic approach when advertisers present opportunities to advertise
Think and communicate key themes to teams to focus our efforts on top priorities
11. 11
Example – Making the Customer Connection
Campaign
Advertising Objectives Communication Strategy Measuring Results
Customer Support
• Marketing Objectives
• Introduce new service capabilities
• Positive influence on Mastio Survey
• Key Message – CS coordinates and
resolves disputes so that you can focus on
your business
• Advertising – Case Studies, Testimonials
on Shell.com
• Personal Selling – Data sheet,
presentation, Contact list
• Public Relations – No Press
• Service & Support – New 1800 message,
call script upgrade, transactional survey
and recovery process
• Target Audience – 1500
• GRP Target – 400
• Frequency – 10
• Reach – 40%
• Cost – TBD
Risk Management
• Marketing Objectives
• Thought leader expertise (Dodd-
Frank)
• Attract new leads
Campaign – Making the Customer Connection
12. 12
Advertising 101 – Basic Overview
Market Type Weekly GRPs Annual GRPs
B2B
Established 25-50 600-1,600
Introductory 50-150 1,200-3,600
Consumer
Packaged Goods 75-250 1,000-5,000
Retail/Service 100-350 2,000-10,000
General Media GRP Guidelines
13. 13
Marketing Communications (Marcom) should be…
FOCUSED on influencing customer perceptions
DESIGNED to support the sales process
INTEGRATED to maximize impact and ROI
The Marcom Toolkit…
Advertising
Press Relations
Personal Selling
Persona
l Selling
SENA Marketing Communications
Customer
Experience
Advertising
Press
Relations
14. 14
Advertising is one of many communication vehicles
Customer Advertising
Operations
Personal
Selling
Press
Relations
• Contracting
• Scheduling
• Billing
• Trade Journals
• Magazines
• Internet
• Events
• Directories
• Sponsorships
• Webinars
• Sales Calls
• Proposals
• Presentations
• Press Releases
• Editorials
• Lobbying
15. Focused on Influencing Customer Perceptions
Outside
Informatio
n
Present
Need
Past
Experienc
e
Value
Propositio
n
Advertising
Promotions
Personal
Selling
Press
Relations
Shell Energy
Gas, Power, &
Environmental
Solutions
Experience
Commitment
Operations
Contracting
Scheduling
Credit
Less than
expected =
NEGATIVE
Feedback
Better than
expected =
POSITIVE
Feedback
Customer
Expectations
Customer
Interaction
with any of our
“Touch-points”
Customer
Experience
Is the difference
between Customer
Expectations and
Outcomes
C
o
n
t
r
o
l
l
e
d
U
n
c
o
n
t
r
o
l
l
e
d
The Marketing Ecosystem – Inputs & Outputs
16. 16
Customer Experience Mapping
Employee
Engagement
Delivery System Customer Engagement Feedback
Make it Clear…
• Expectations
• Personal
• Accountable
• Skill Build
Create Performance Standards
• Functions
• Teams
• Divisions
Manage Expectations
• Service Levels
• Communication (Tempo)
Complete the Learning Loop
• Customers
• Employees
• Processes
Led by Leadership R3 Sales Process
• Coaching
• Key Accounts Management
Thought Leadership Comms
• Risk & Regulatory
• Market Information (G,P,E)
• Customer Service Levels (CS)
Customers
• Mastio (insights to improve)
• Web, Email, Helpline
• Transactional Surveys
• Divisional Surveys
• Customer Councils (T2T)
• Gap Analysis
KnowledgeSkill Build Market Information
• Risk & Regulatory
Communication
• Billing
Employees
• Employee Survey
• Skill Assessment
• Gap Analysis
Celebrate Success
• Recognition Awards
• Success Stories
Customer Support Processes
• Performance Measurement
• Gap Analysis
Talent Development IT Systems
• Single Gas Platform
Customer Experience Mapping
• Touchpoints
• Gap Analysis
• Impact
17. 17
Advertising Plan – SENA
Marketing Priorities Advertising Objectives Advertising Strategies Advertising Tactics
Experience
Commitment
(Who we are, What we do)
• Awareness – Establish “top of
mind” equal to 50% of the target
market
• Attitudinal Change 1 – Establish
a “strongly consider” image with
at least 50% of the target market
• Attitudinal Change 2 – Establish
a “leadership” image with 25% of
the target market
• Promise – SENA is a leading
provider of Energy solutions (Gas,
Power, and Environmental)
• Support – Over 100 years
experience in energy
• Tone – Principle Centered
Leadership, Honest, Confident,
Humble
• Rationale – Significant market
and customer growth over last 10
years;
• Media
• Print Advertising
• Web Banner Ads
• Video – Introduction to SENA
• Scheduling – Continuity, April
2011 target launch date
• GRP Target – 400
• Frequency – 10
• Reach – 40%
• Cost – TBD
Risk
Management
Campaign
(Marketing Campaign based
on new Risk Mgt. business
strategy for SENA)
• Awareness – Establish unaided
awareness equal to twice the
number to purchase
• Attitudinal Change 1 – Establish
a “strongly consider” image with
25% of the target market
• Attitudinal Change 2 – Establish
a “leadership” image with 15 % of
the target market
• Promise – SENA is as good as
the banks; because we have a
better understanding of energy
customer needs
• Support – Experience in Energy
Financial Products
• Tone – Pre-emptive and
professional, confident (inspiring
trust)
• Rationale – Existing SENA
Financial products customers that
use SENA prefer over banks;
recognition by Energy Risk
Magazine as a top provider of risk
solutions
• Media
• Print Advertising
• Web Banner Ads
• Video – SENA Risk Solutions
• Scheduling – Front Loading for 8
weeks after launch of new SENA
Risk Mgt. Strategy . July 2011
target launch date.
• GRP Target – 300
• Frequency – 6
• Reach – 50%