McDonald’s recently announced their financial results for 2012…

“The company, which has enjoyed a stellar few years following the economic crisis, said that its turnover had increased by 12pc to $27bn, with net income increasing 11pc to $5.5bn.

This is the ninth consecutive year that sales have increased after it suffered from a crisis of confidence at the end of the 1990s.”

More here…

“McDonald’s hits record $27bn turnover”

Mickey D’s is a somewhat unfashionable company that the chattering classes love to disparage.

But they must be doing something right.

The financial performance is solid…impressive even…by any standards…

…and they seem to know a few things about increasing sales.

And the report brought to mind a comment from Dan Kennedy in his marketing newsletter a few months back (meant to post about it at the time…but you know how it is).

Dan was talking about “Limited Editions” and how any business can use them to boost sales.

“Limited-time offers and temporarily available products are very commonly used in the fast food and mid-range restaurants.  RED LOBSTER gets a 12% bump in traffic when they run their once a year “lobster festival”.  It works so well because it is tied to an already accepted fact…that lobsters are “in season” once a year.”

Dan goes on to talk about the formula for successful promotions like this, namely…

(something special) + (special value) + (limited time period) = sales boost

…and mentions Quizno’s and Burger King as chains that rely heavily on limited-time items.

McDonald’s isn’t specifically mentioned by Dan, but they certainly make use of the tactic.

There’s another factor too, that I think plays a significant role.

Over the last 10 years or so, they’ve become a lot better at product innovation and giving people reasons to come back to their restaurants.

Sure, they’d always tried new things (remember “McPizza” anyone?) but they never seemed to be very successful.

But now, they seem to have developed a surer touch with innovations like McCafe and “premium” lines like the “Angus” burger range (gee, I’m getting hungry just writing about it).

One of the biggest challenges for any business, especially restaurants, is giving clients a reason to come back.

Limited time offers and new products are among the ways to do that.

So keep an eye on what successful companies like McDonald’s are up to…

…and see how you can use the “sales boost” formula in your own business.

It’s that time of the month again to look forward at next month (February 2012) and review the various holidays, events and anniversaries that smart marketers can use as the basis for a promotion or campaign.

As an aside, seems it’s never too early to get started on your preparation.  I was aghast to see hot cross buns on sale in my local supermarket the other day!  Easter this year, will be 6-9 April.

Valentines Day (February 14) is the standout occasion for the month pretty much everywhere.

And this year, 2012, also happens to be a Leap Year.  So, February 29 is “Leap Day” this year.

In Australia, the calendar is pretty bare besides Valentines Day and the “Leap Year” theme. The new school year starts at the end of January so there is potential for a “Back To School” theme early in the month.

Elsewhere…

Feb 2 – Groundhog Day(again!!)

Feb 6 – Diamond Jubilee Of Queen Elizabeth II (UK)

Feb 7 – Charles Dickens born in 1812

Feb 11 – Thomas Edison’s Birthday

Feb 20 – Presidents Day (USA – third Monday in February)

Feb 22 – Happy Thinking Day 

Feb 24 – National Obnoxious Day (!)

Feb 29 – Leap Day

You’ll find more off-beat and unusual occasions listed over at www.BlueMountain.com (see the “On this day…” section)

To wrap up this month…

Feb 6 – the game Monopoly first went on sale in 1935

Feb 19 – “Temporary Insanity Day”. On this day in 1859, the defence of “Temporary Insanity” was first successfully pleaded in a US court

In case you missed any of the individual posts…

…here’s a roundup of the series “Marketing Trends For 2012″

Marketing Trends For 2012 – Take 1

Marketing trends For 2012 – Take 2

Marketing Trends For 2012 – Take 3 (Trends In Video)

Marketing Trends For 2012 – Take 4 (Frank Kern)

Marketing Trends For 2012 – Take 5 (Perry Marshall)

As it’s now already January 10, I’ll draw a line under the series and simply add additional noteworthy material here as an update.

One final set of thoughts for the year ahead from the great marketer Jay Abraham…

“The New Year that’s upon us could…possibly…be THE toughest, most challenging, stress inducing, mentally buffeting year you’ve ever lived in your business.

Why? The reasons are many. But the point I want to make is NOT how competitive the marketplace is becoming. It’s NOT how different consumer buying patterns are changing. It’s NOT even a lecture about anything I teach, like the Strategy of Preeminence or the Nine Drivers of Geometric Growth.

No – there’s only one vital/critical/pivotal realization I want you to make as we start the clock ticking loudly away on this year of dramatic volatility we’re calling 2012.

As a business owner – you’re either a proprietor or an entrepreneur. Tragically, shockingly, but truthfully – something like 95% of all small business owners function as proprietors – not entrepreneurs.

Why is this fact so bad? Because your days as a proprietor – operating a ”me too,” commodity-type enterprise are all but numbered. Stated less tactfully – unless you dramatically change who and what you are – your business could become “The Walking Dead” – possibly sooner than later.”

Put in a slightly different way, the days of making good money without adding significant value in some way to your customers is long gone (and not coming back any time soon).

The last 30 years, since around 1980, have been a long economic upswing.  Sure, there were some rocky periods along the way and it might not always have felt like a boom period.  But look back objectively and you’ll see that the economic trend was up throughout that time.

That’s over for the immediate future.  The great Dan Kennedy talks about the “New Economy”, one that’s much tougher for business owners.  In his December 2011 newsletter, Dan quotes Groucho Marx…

“It isn’t so much that hard times are coming; the change observed is mostly soft times going.”

In the past, good marketing and business strategy has delivered great returns.  What Jay Abraham is saying, essentially, is that in 2012 good marketing and strategy is essential if you want to survive in business.

It’s not all gloom, however.  Opportunities are still out there and we live in an era of extraordinary change and opportunity.  For those bold and smart enough to grasp those opportunities, the rewards will still be there in 2012 and beyond.  Mediocrity, however, will not be enough.

UPDATE (13 January 2012):

Thoughts from copywriter Ray Edwards.  Ray may have put off some people with his overt espousal of Christianity but I’ve always found him to be a very smart marketer…plus a good guy to boot.

Here’s his…

“Prophetic Business Predictions For 2012″

This latest Tom Fishburne cartoon brought a smile to my face…

…and an instant identification with the main character!  Perhaps I don’t quite need a separate bag for my “loyalty” cards but there are enough of them.

Which begs the question, of course, how effective are these cards really?  When every retailer has a similar scheme, do they end up as just another discount?

Looking after and rewarding your best customers makes perfect sense, of course.  All too many businesses don’t do nearly enough to make customers feel appreciated and retain their business.  Remember, it’s expensive to acquire new customers and far cheaper to sell to an existing client.

Having said that, creating loyalty starts with having a great product and delivering an outstanding experience.  Perhaps an overused example, but Apple has a legion of die-hard, raving fans without having to resort to incentives or discounts disguised as loyalty schemes.

I’ve mentioned “Frank Kern’s 2012 State Of The Internet Address” a couple of times.  It’s noteworthy because his main theme is that for success in business, the most important area to focus on is delivering a great product and customer experience.

Problem is that all too many people (both online and offline) seem to think that clever marketing is the answer to all business problems.

It’s not.  In direct response marketing having a good (ideally great) product and offer is not optional…

…it’s the starting point!

Sure, there are scams out there but in this discussion we’re talking about legitimate businesses.

So good marketing is essential (lots of great products out there that fail  because of poor marketing)…

…but you have to deliver to the client.

Marketing maestro Jay Abraham has a similar message…

“No – there’s only one vital/critical/pivotal realization I want you to make as we start the clock ticking loudly away on this year of dramatic volatility we’re calling 2012.

As a business owner – you’re either a proprietor or an entrepreneur. Tragically, shockingly, but truthfully – something like 95% of all small business owners function as proprietors – not entrepreneurs.

Why is this fact so bad? Because your days as a proprietor – operating a ”me too,” commodity-type enterprise are all but numbered. Stated less tactfully – unless you dramatically change who and what you are – your business could become “The Walking Dead” – possibly sooner than later.”

(NOTE: This is from an email to Jay’s list.  To subscribe head over to Abraham.com.)

In other words, to survive, let alone gain a significant advantage over the competition, you MUST deliver added value in some form.

More than ever, it’s a case of “Differentiate Or Die”…

…and if you want true customer loyalty, it’s going to take more than some simple marketing tactics (helpful though they can be).

Worth reading the whole post from Tom at…

“loyalty”

…and there’s a nice example (with video) of another company that has created loyal customers with no loyalty program at all.

Best known for his prowess with Google Adwords (and now Facebook Ads)…

…Perry Marshall is also a smart marketer, highly connected and well worth listening to.

He’s come up with 10 predictions for 2012, including these 2 that I think are particularly worth taking note of…

2. Cost Per Impression for online marketing exceeds that of offline. Online offers no particular price advantage in thick niches; the advantage is in the bells and whistles and targeting. Well worth the money, by the way.

Which means…online-offline integration is the name of the game.

10. Four horsemen: Netflix, Pandora, Spotify and Amazon. The price of books, movies and music is headed towards zero. You’re already seeing 1-day Kindle specials: $20 books are $2.99, 99 cents or even free.

Which means…you’re probably going to need a “loss-leader” strategy.

Read the whole thing…

“10 Predictions For 2012 From Perry Marshall”

From Frank Kern, his “State Of The Internet 2012″ address.

Not so much a discussion of what’s “new and fabulous”…

…rather some solid advice on BUSINESS fundamentals and what’s really important in being successful and making money.

Most likely, none of this will be new to you BUT coming from Frank Kern, someone regarded as a leader in “internet marketing”, it carries real weight.

In Frank’s words, he covers…

1. The ONLY three aspects of your business you should be focusing on.

2. The single greatest skill you can master in 2012 to guarantee long term success.

3. The number one thing that’s killing Internet businesses as we speak.

4. WHY THERE’S NO MONEY IN “INTERNET MARKETING”.

No opt-in required and nothing to buy.  Watch the address here…

“Frank Kern’s 2012 State of The Internet Address”

P.S. After the main “State Of The Internet” address, there’s another video.  Well worth sticking around to watch.

Wonderful cartoon from “marketoonist” Tom Fishburne to kick off 2012…

“Product proliferation” or “line extension” is one of the biggest mistakes made in the conventional marketing arena…

…and there are useful lessons for direct response marketers.

Line extension sounds such as sensible and logical strategy.

The justification is usually along the lines…

1. It’s a way to leverage current brand equity

2. It’s a way to more closely meet the needs of consumers (in effect, a way to effect a niching strategy)

3. By offering greater choice it will boost overall sales

4. By offering new products it will maintain interest in the brand and improve customer retention

As I said, it all sounds completely logical and it can improve results…

…in the short term..

Line extension has a couple of BIG problems…

…that almost always mean it’s a mistake.

Problem #1 – Focus Is Diluted

The most successful businesses and brands tend to be those that are highly focused. Customers have a very clear idea of what’s on offer.

This idea has been expressed in different ways from the idea of the” Unique Selling Proposition”…

…to the concept of “Positioning” developed by Al Ries and Jack Trout in the seminal marketing book “Positioning: The Battle For Your Mind”.

In a nutshell, Ries and Trout proposed that each brand can only hold ONE position in the mind of the consumer.

So, for example, Volvo used to own the position of “safety” in the car market.

The problem with line extension is that the company or brand loses focus.

The Harvard Business Review published a study on line extension (see page 19 of the book “Repositioning” by Jack Trout). Its observations were that line extension weakened a brand’s image and disturbed trade relations.

Other studies have shown that line extensions perform worse that new brand names, undercutting the leveraging brand equity argument.

More about the problems of line extension can be found in “Focus” by Al Ries, “Big Brands, Big Trouble” by Jack Trout and this post from Laura Ries…

“Crazy Line Extensions”.

Problem #2 – Cluttered Store Shelfs 

Back to Tom’s cartoon and post…

“product proliferation”.

Despite the evidence that line extension is a poor strategy, companies continue to launch waves of new products that are little-different to existing lines.

The result is competition for shelf space and the transfer of power to retailers…

…who have increasingly exploited that power by demanded fees and other concessions.

Even worse, this product proliferation can confuse consumers…

…a remember “a confused mind doesn’t buy”.

Direct response marketers don’t have money to waste…

…and in tough times I suspect big corporates won’t either.

Stay tightly focused and be very clear on what you’re offering your clients.

Master copywriter Michel Fortin shares his marketing predictions for 2012…

“My 2012 Predictions Are In…”

Michel is an outstanding copywriter and marketer who tends to have his finger on the pulse of the marketing world.  Had the opportunity to meet him and speak at length when I attended the “Breakthrough Copywriting” seminar a few years back.  Someone always worth listening to, in my opinion.

Anyway, Michel has only 3 picks…

1. Mobile commerce is going to explode

Wouldn’t argue with this.  Now, I confess I am something of a techno-dinosaur when it comes to mobile devices. My teenage niece was highly amused at my rather old, 2G mobile phone.

However, even I have noticed how many of my friends and acquaintances (particularly the younger ones) are using their mobiles as a major, even the primary, way to accesss the internet.

The importance of mobile will vary depending on the nature of a business and how the clients prefer to access information.  So for many “bricks and mortar” businesses, mobile will be very important and will have a very high potential payoff and a source of competitive advantage.

2. Bye-bye desktops and laptops

Not quite what it sounds like…

…but it’s all about ease of use and the increasing variety of ways to connect with the internet.

3. Convergence finally starts taking shape

Something of a follow on from the second prediction. Again it’s all about how people connect on the internet and how they use it.

Read the whole thing…

…and ponder how these 3 trends will impact your business in 2012.

The post Christmas sales are in full swing…

…so this great Tom Fishburne cartoon is timely…

Read the original post at…

“on the 12th day of Christmas retailers gave to me”.

Sales can be a great way to boost sales and profits in the short term…

…but they carry great risks to long-term profitability if not used wisely.

For example, in the UK there are always sales on kitchens, bathrooms and home furnishings.  In fact, it seems it’s become something of a Christmas tradition to head off to the sales  after Christmas Day.

Given that, if you’re looking to buy a kitchen (for example) why would you buy at any other time of the year?  If you know there is going to be a regular sale, why would you pay full price?

OK, in a tough retail environment you may have to discount to keep pace with competitors.

But if you’re in that situation, that indicates a broader strategic marketing failure.  If you’re not unique enough that in effect you’re “in a category of one” then you’re always exposed to the risk of price competition.

So think carefully before indulging in savage price discounting.  At a minimum have a good reason and make the promotion limited in some way (by time or volume).  Even better, maintain prices but add extra value with bonuses.

One of the biggest payoff activities in marketing is to prepare a marketing calendar. And it’s never too early to map out a calendar for the coming year.

So here’s a selection of events, holidays and anniversaries you can use to prepare a core marketing calendar for your business.

First, a list of the major events coming up in 2012…

Feb 6 – Diamond Jubilee (60 years) of Queen Elizabeth II (UK)

May 12 – World Expo 2012 opens in Yeosu, South Korea (runs to Aug 12)

May 20 – Annual Solar Eclipse

Jul 27 – Opening Ceremony Of 2012 London Summer Olympics

Dec 21 – Completion of the Mesoamerican Long Count Calendar

Concerning major anniversaries…

Feb 7 – 200th anniversary of the birth of writer Charles Dickens

Jun 23 – 100th anniversary of the birth of mathematician and computer expert Alan Turing

Next a core calendar that can be used pretty much anywhere for the coming year 2012.

January – New Year

February – Groundhog Day, Valentine’s Day

March – St Patrick’s Day

April –  Easter

June – Mid Year (mid-summer northern hemisphere, mid-winter southern hemisphere)

October – Halloween

December – Christmas

To fill out the schedule

Two fairly universal events are…

Mother’s Day – March 18 (UK), May 13 (USA, Canada, Australia)

Father’s Day – June 17 (UK, Canada, USA), September 2 (Australia)

In the USA…

July – Independence Day

September – “Back to School”

November – Thanksgiving

In Canada…

July – Canada Day

August – August Civic Holiday

October – Thanksgiving

In Australia…

January – Australia Day

April – ANZAC Day

June – End Of Financial Year

November – Melbourne Cup

That should be enough to get started on a sales-boosting, profit-pulling marketing calendar.  I’m writing this while on the road and I’ll update and add events when ‘m back in the office with access to my full marketing library.

UPDATE (30 December 2011):

Here’s an interesting article from the UK “Daily Telegraph” with more events and anniversaries…

“2012: All this and a diamond jubilee too”