Marketing and Marketing Communications for Small and Medium Businesses: Major Forecasts for 2017

2016 ended with Americans exhausted by emotionally wrenching politics, stories of entanglements abroad, and violence at home. Companies have also struggled with modest economic growth and a turbulent stock market. As 2017 begins, we all, consumers and organizations alike, face uncertainty in a variety of scenarios.

Against this backdrop, companies have yet to develop, plan and execute strategies for profitable growth. After speaking with several colleagues and clients, and reading the comments of various experts and forecasters, here is my take on what lies ahead for small and midsize B2B and B2C businesses in the coming year:

1. A significant number of marketers, both large and small, will conduct agency reviews in 2017. The current Advertiser Perceptions report (based on 420 marketers representing about 90 percent of the top 100 US advertisers) reveals a staggering number of planned reviews:

66% plan creative agency reviews;

· 65% plan to review search agencies;

· 64% plan to review media agencies;

61% plan to review digital agencies.

Why? Beyond the lack of trust in the authorities of society as a whole, rightly or wrongly, trust between marketers and their agencies has also been lost. So if you’re feeling concerned about your relationship with the agency, recognize that you’re not alone.

two. There will be significant increases in the number of companies hiring “contingent workers”, that is, independent contract workers and self-employed specialists. In the face of increases in the minimum wage, increases in health care costs, and rising payroll taxes, companies are obviously doing everything they can to reduce their fixed labor costs. But the ability to hire top-tier talent on a short- or long-term basis is also a practice that is gaining a lot of momentum. In fact, a recent survey by Deloitte University Press showed a “significant 7 percent increase” plus a “44 percent increase” in planning to hire contingent workers in the coming years.

Keep in mind that these “outsiders” bring fresh energy and fresh ideas to any type of organization and, at the same time, may provide you with some savings on your bottom line.

3. Media fraud and ad blocking will increase in 2017. Much was uncovered by the Association of National Advertisers’ eight-month investigation of undisclosed rebates flowing from digital media companies to agencies. However, there is an incentive for fraudsters to keep doing what they are doing due to the ability to bypass fraud detection systems. This pervasive practice can influence agency media recommendations (and bottom lines), while obviously not in the best interests of clients.

Perhaps most importantly, the staggering growth of ad blocking across all markets poses a huge threat to digital media. At least 419 million people around the world are blocking ads on their smartphones, almost double the number of blocks on desktop computers. That’s 22 percent of the world’s 1.9 billion smartphone users (PageFair – Ad Blocking Goes Mobile).

Digital and mobile media are not going away, but using them effectively is challenging. Find trusted professionals to make sure you get what you expected.

Four. Since customers and supporters are the life blood of any business or nonprofit organization, organizations will need to significantly increase their efforts to gain insight into their real-world wants and needs. A recent McKinsey & Co. study of about 700 top executives found that: 1) only 6 percent of companies felt they understood their customers’ needs very well; and 2) seventy-two percent considered KYC budgets inadequate.

There has been an explosion in the amount of customer data available, with new software programs mining all kinds of purchase and review information, including social media. To be competitive, organizations will need to continue to expand their knowledge using this new information. It just doesn’t seem smart to even consider developing a specific strategy or plan without knowing your customers, so make sure you have the skills to get and interpret the right information.

5. Developing and maintaining a positive customer experience will become the new king of marketing. Distrust of institutions seems to be rampant: products are recalled, passwords are stolen, online tweets have as much credibility as government agencies. Starting with employees, make sure they have the knowledge and tools to better serve the customer, create a positive experience, and champion repeat purchases and customer referrals.

Confidence is the new black. All aspects of a brand’s life must convey reliability, consistently delivered in a credible manner, at every touch point.

6. The acceptance and use of direct mail by millennials will continue to increase. Yes, millennials. And, yes, postal mail. This demographic is the most likely to open and read direct mail. In fact, 63% reported that they made a purchase based on a direct mail piece they opened in the last 3 months (Info Trend Study of direct marketing in the US).

Perhaps your flooding them with spam, interrupted advertising, and meaningless content leaves them tired of staring at screens and searching for a “new” medium. After all, it’s not about technology; it’s about effectiveness.

7. While online media spend will tie with TV for the largest spend in 2017, more marketers will acknowledge that the majority of top media spend still goes to traditional media (65%). TV spending will increase by 1 percent, away from home by 4 percent, as radio remains unchanged and only magazines and newspapers will show declines (by 5 and 9 percent, respectively). Additionally, the Marketing Services category will grow 2.8 percent to $237 billion, led by sales promotion, telemarketing, direct mail and event sponsorships. (advertising age)

It goes without saying that determining where to spend your money on marketing communications is becoming more complex. The key to doing this successfully is understanding the difference between selecting the newest “efficient” tactical tool and selecting the most “effective.” This is increasingly important for small businesses, which cannot afford costly mistakes.

8. Much more time and intelligent thinking will be devoted to strategy development, positioning, and planning for marketing and marketing communications. A 2015 “Significant Brands” study by Havas reported that most people wouldn’t mind if three-quarters of all brands were gone forever. Furthermore, most brands have not updated their strategies to satisfy today’s Internet-enabled shoppers. These buyers have access to a wealth of information and have a wealth of purchasing options at their fingertips. It is more vital than ever that, in order to survive, you must continue to uphold the meaning of your brand to your constituents.

Both for-profit and non-profit brands need to make it absolutely clear how they differ from the competition and make their value proposition completely believable at every opportunity. Once your plan is implemented, you also need to know what is working and measure everything.

Marketing communications and value marketing consultants

2017 brings with it a considerable number of unknowns and concerns facing your customers, prospects, and even your employees. They are clearly more cautious about what to believe and who to trust in the coming year. All organizations face these issues and the dilemma of how to run a successful business in this climate.

Many small and medium-sized organizations are partnering with established, independent senior consultants to help them with marketing and marketing communications budgets and plans – assess, develop, refine and, if appropriate, implement. If this is something you might consider, look for people with extensive B2B, B2C, and nonprofit experience across industries and brands. Look for consultants who are media neutral and don’t sell a particular discipline. And make sure they’re passionate about results analysis and willing to “tell it like we do” so that candor flourishes.

Improving the profitable ROI of sales and marketing communications is a daunting task. Finding the right consultant to partner with you may require a bit of searching, but as Yogi Berra said, “When you come to a fork in the road, take it.”