2010: Looking at the Market Differently

By Barb Pellow, InfoTrends

The market perception is that the economy is going to get better in the next 12 months, and we are already seeing some signs of recovery. Nevertheless, credit and employment will remain tight, corporations will still be seeking deals on commodity items, downward price pressures will persist, and marketers will be focused on new customer acquisitions as well as strong retention strategies with demonstrable ROI. The challenge for the graphic communications industry is that the print volume that was lost in the most recent recession may be gone forever. Today’s industry is characterized by new digital customized media options and alternatives. While print media remains an integral component in the overall business communications cycle, customers of all sizes want it blended with online, social, and mobile solutions. Organizations that put the time and energy into building a digital foundation over the past two to three years will be rewarded because they are prepared to participate in the world of “interactive” customized communications. Those that did not will need to develop a solid “catch-up” strategy.

To survive in 2010 and beyond, print service providers must focus on innovative techniques to blend print with new media. They will need to implement creative new products and services that:

·         Increase share in existing markets

·         Add new value to existing client relationships

·         Enter new markets

12 Key Areas

To deliver new and innovative strategies, there are 12 key areas that graphic communications firms will need to explore if they hope to be successful in 2010 and beyond.

1.       Integrated communications are what marketers and customers want! Print/marketing service providers must develop new service portfolios to capitalize on the changing media dynamics. They need to effectively blend social, print, online, and mobile techniques and communicate consistent messages across all channels.

2.       Although we have been talking about it for a long time, robust Web-based integrated campaign portals will be essential to success in 2010.

3.       It’s about conversations, NOT campaigns… print needs to lead to interactivity.

4.       Data is king. While successful marketing service providers have been using data as their “secret sauce” to drive, track, and measure the success of campaigns, more marketers and advertisers are planning to take a data-intensive approach in the coming year.

5.       Measurement is the name of the game. Customers must understand the value of every marketing dollar spent.

6.       It’s time to get on the mobile bandwagon and integrate mobile and print. Creative marketers will begin to see the value of QR codes in print ad mailers and window displays.

7.       Photo merchandise will continue to be the “gift that keeps on giving,” bringing profitability to service providers. An explosion of digital cameras and smartphones as well as easy-to-use template-based Internet interfaces are driving consumers to “capture” and share the moment.

8.       Small and medium-sized businesses (SMBs) are a key opportunity for volume aggregation. The rise of the Internet and electronic media has redefined the way that SMBs communicate with their customers and prospects, and the opportunity for service providers is shifting from traditional printed mass media advertising to non-print channels such as e-mail, Web, and mobile. With the added complexity of multiple marketing channels, these companies are seeking outside expertise for assistance.

9.       Digital packaging is a recession-proof growth opportunity. Digital technology provides brand owners with the increased flexibility needed to handle a widening range of packaging requirements (e.g., shorter packaging runs with a broader range of packaging styles, sizes, and configurations to support increases in SKUs). It represents opportunities in all segments of the commercial print market.

10.    The new reality is augmented. Engaging customers with print is sometimes difficult, but marketers see augmented reality techniques as an opportunity drive product sales, get people to open magazines, and enhance the educational experience associated with books.

11.    Efficiency is essential and automation is king. In lean times, the most efficient service providers will win. Now is the time to make your move—the economy has not yet heated up and interest rates are still low. Take advantage of any slowdown in your operation, and use your time to research the best investments and deploy capital in the best way possible.

12.    New skills and organizational re-tooling are critical.

Get used to the fact that there is no “business as usual” anymore. The printing industry that you knew and loved went away with the recession, and it's not coming back. To adapt to today's business realities, question all of your beliefs and assumptions, get comfortable with uncertainty, and adjust your expectations. For most, the new “business as usual” will be slow and sustained growth rather than a hockey-stick curve, and the market will continue to surprise us.

Innovators are seeking new techniques to break the rules. If you're not breaking rules on a regular basis, your customers and markets have probably already left you behind. The new rule for today's chaotic markets is to constantly challenge the status quo. Don't automatically assume that what made you successful in the past will continue to make you successful in the future.

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