Fall 2001

 From the Team…

Welcome to another exciting issue of the Vortex! Some interesting things happened at Red Rock since our last newsletter!

First, Red Rock has initiated a formal Internship Program with local Colleges and Universities. Our goal is to provide students and recent grads with the opportunity to hone the skills they learned in college and experience what it is like to work in the "real world". Our program exposes the participants to the mechanics of running a business, not just performing a particular job function. We believe this will better prepare them for the challenges that lie ahead. We have openings for students interested in pursuing Account Management / Product Management, Graphic Design and Interactive Design. Let us know if there is anyone you know who may be interested in joining in our flexible program.

Secondly, we've launched our "Lunch Bag Seminar Series". This is a free series of 15 interactive 45-minute educational sessions that provide a background on a variety of subjects that can be immediately used to help grow your business. Topics range from "Closed-Loop Event Marketing" to "1+1=3 An Approach to Integrating Sales and Marketing" to "The Branding Process - Creating an Equity". These sessions can serve as a solid foundation for a continuing education program for your management and employees. Ideally, they are held over the lunch hour at your office. For a complete list of topics or if you would like to explore implementing this series at your company, please call Lee Taylor (314) 436-7880 ext. 19.

Finally, we have initiated a Referral Program. So, don't be surprised if you get a call asking for names of people you know who might benefit from Red Rock's services. As you know, the best source of new businesses is from current customers. We would be honored if you would pass on our name or even this newsletter!

Until the next issue! Thanks,
Lee & Don

Red Rock is a Strategic Communications Company that designs programs to grow your business.

Clients often refer to Red Rock as their outsource marketing department or a compliment to their existing marketing staff. Our concept is simple. Unite experts from key business-building disciplines (strategic marketing, sales management and creative) under one roof. We don't just sell "advertising" or "brochures". These are only two of the many "tools" in our communication toolbox. The diverse yet complimentary backgrounds of Red Rock's management team provides you with a "real world" perspective on your projects that you won't find anywhere else.

To help management articulate their vision for growth, Red Rock offers proprietary business development tools and has the capability to bring those dreams to life with the actual production of sales and marketing communication programs and materials. From sound strategic planning to the production of cost effective selling materials, Red Rock's portfolio of services offers you a wide range of solutions to help grow your business. Red Rock Communications, Inc. is located in St. Louis, Missouri. For more information, check out our web site: www.redrockcomm.com or call (314) 436-7880.

We believe better business decisions begin with a vision.

 

We are no doubt experiencing the worst economic downturn in a decade. It's really ugly out there. Revenues are down across the board. Consumers look like they are reluctant to buy. To maintain their bottom line, many companies are reducing their marketing and advertising spending. Their rational is simple: spend less to protect profits. "If I cut back on my marketing and advertising, I don't have to let people go or change my day-to-day operations." Experts are forecasting that advertising spending will shrink at least 3% this year from the $243.7 billion reposted in 2000.*1 We believe this may turn out to be a conservative estimate.

What is the long-term impact of reducing your marketing spending? It could be devastating. Studies done as far back 1927 *2 have consistently proven there is a definitive relationship between an increase in ad spending and growth in long-term market share and profitability. During recessionary periods businesses that spend more can easily gain market share because their smaller competitors were less willing or able to defend themselves. And, the businesses that continue to spend came out stronger after the recession. Businesses that increased media advertising during the recessionary periods gained an average of 1.5 points of market share.*3

Think rationally. If you truly believe in your product or service, continue to support it. The impact on your bottom line will be short lived. Consumers will continue to buy. But, if they don't remember what you have to offer or a competitor convinces them to buy their product instead of yours, how can you ever expect your sales to return to pre-recession levels?

Now is the time to review your marketing communications program. Is it working hard enough? Is your message strong and consistent across all your materials? Is there a more effective and efficient way of doing things? Great companies behave the same way in downturns as they do in upturns. Turn up the heat!

If you would like to have an objective review of your current marketing program, please call Red Rock (314) 436-7880.

*1 USA Today, 8/7/2001
*2 Harvard Business Review, April 1927
*3 Cahners Publishing / Strategy Planning Institute Study, 1982

The next time you are facing a business challenge that has to be solved quickly or that requires skills your staff doesn't have, consider outsourcing.

The obvious benefit of outsourcing is its economic value. By outsourcing you are able to work with experienced professionals without having to hire them on as a full time employee. You can avoid all of the extra costs (payroll taxes, benefits, etc.) associated with employees. When the engagement is done, so is your commitment to them. It is much easier to terminate a company that it is to let go of a full time employee.

Experience, ethics, objectivity and commitment are the most important qualities to look for in an outside expert. Does the person have the in-depth experience required to solve your particular problem? Do you have total confidence in their integrity? Can you trust them with your highly sensitive business information? Are they able to analyze your situation with out preconceived ideas or constraints? Will your project be their top priority as it should be?

The best outside experts will have a strong mix of analytical skills and a sense of creativity. Can they visualize your real problems and recommend unique approaches to solving them? Do they have the good interpersonal skills? Do they listen? And most importantly, do they constructively challenge your paradigms?

Consider Outsourcing When...

  1. You have a specific, short-term business problem that is best solved by someone with experience in that particular area.
  2. New business or deadlines create a heavy, short-term workload requiring experienced help to supplement in-house staff.
  3. You need an outside perspective to help identify new markets or strategies.
  4. You need independent objective advice or strategies.
  5. You need temporary help in a technical area.
  6. You need to invigorate your business with new ideas or perspectives.
  7. You want help to train or educate your staff.

Don't be shy about calling in outside help. No one can be an expert in everything.

 

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