Issue link: http://read.dmtmag.com/i/101441
Marketing (���Putting the Cooperation Back into Co-op Brand Marketing��� continued from page 22) is not covered by co-op funds. ���We do those things that are covered, but we are also adding and expanding e-marketing, because we see the value,��� said Haddaway. ���The dynamics have changed over the past decade,��� said Novak. ���If you are still doing traditional methods of Best Practices for Manufacturers Listen to your dealers. Find out what the biggest complaints are with your co-op program and work on finding solutions. Be flexible with your creative. Allow dealers options for customizing ads while still meeting brand standards. Be willing to try new advertising methods. Consider a trial campaign to test online advertising methods. Offer an incentive to dealers who are willing to participate. Make it easy to participate. Consider manufacturer-driven programs that require little administrative effort. Simplify program requirements and speed up the reimbursement process with online claim submissions. Integrate tracking and analysis. Let your dealers know how their co-op investments are performing. Get professional help. Offer professional expertise to help dealers manage marketing, Web development and online marketing. Seek out strategic marketing partners. Help dealers stretch their budgets by seeking out noncompetitive products that could be promoted alongside yours. advertising exclusively, you are losing a lot of exposure because prospects are searching on the computer.��� Folcomer Equipment has experienced a greater return from e-mail marketing and online advertising programs than they have from print ads, even though they aren���t covered by co-op. ���Our dealership really wants to bring technology in, and right now the co-op programs don���t provide us reimbursement for even e-mail marketing,��� said Haddaway. She���d like to see manufacturer support of pay-per-click ads, banner ads and mobile marketing. ���Manufacturers could save themselves some money if they took a more holistic approach,��� said Haddaway. Local Marketing Gap Despite wide evidence that consumers (and equipment buyers) are researching online, national brands have not supported the use of digital in their co-op programs. Recent research from Borrell & Associates confirms that only 7.5 percent of co-op funds are available for digital efforts. ���Marketing has become more technically complex,��� said Shane Vaughn, CMO for Balihoo, a software company that helps national brands manage co-op advertising and marketing. ���Consumers are looking to find information online, but local marketers lack the technological expertise and resources to manage it effectively. We call this the ���local marketing gap.������ ���We have experienced pushback because dealers feel that they cannot afford a website and online marketing tools,��� said Lan Tran, marketing and OEM coordinator for Equipment Web Services, an Internet solutions provider for the heavy equipment industry. ���Dealers must remember that it takes as little as two to three machines sales from a website lead to pay for the cost of the entire web program for the year.��� Vaughan believes national brands have been hesitant to support online advertising because they lack the visibility into the return on those dollars. ���They are also afraid of opening up paid search to local dealers for fear that it might drive up the costs for the Best Practices for Dealers Educate yourself on what���s available. Know the total dollar amount of co-op funds available and what types of activities are reimbursed. Make a plan. Plan your trade shows, events, print advertising, direct mail and promotions, and online advertising over the course of the year. Determine how you will apply your co-op dollars to your monthly budget. Know the process. Know what creative you need approval on and what you don���t. Keep reimbursements handy and know what proof you need to show the manufacturer. Assign a designated person to administer claims. Failure to properly submit claims could cost your company thousands of dollars. Appoint a reliable person to manage claims. Be timely. Mark your calendar for when claims must be submitted. Have accounting monitor reimbursements against claims. manufacturer���s keywords,��� said Vaughan. Balihoo���s solution provides national marketers with an automated way to manage co-op funding; share creative assets; and integrate the planning and execution of all types of marketing, including pay-per-click advertising. The program promises greater dealer utilization of co-op dollars because there are far fewer headaches with reimbursement and it���s much easier for dealers and OEMs to manage campaigns. As proposed by Balihoo, keyword selection and IP targeting would ensure that pay-per-click campaigns for dealers are part of a coordinated effort. In addition, local campaigns would be optimized based on the results of much more data, 24 | www.cedmag.com | Construction Equipment Distribution | January 2013 20_Mktg_Feature_KP.indd 24 12/21/12 10:46 AM