Blog o' RAMA

Reflecting on Super Marketing Hero: B. Thomas Golisano

Today, we had the pleasure of hosting B. Thomas Golisano, owner of the Sabres and founder of Paychex, Inc., as a Super Marketing Hero. The topic was "Reinvigorating the Sabres Brand." His presentation was outstanding (for both the marketers and all of the hockey fans in the audience)!

The focus of the presentation was on the Sabres' success story. Back in 2003 when Golisano purchased the Sabres, the team was bankrupt.

Golisano shared with us the strategies and tactics he used to turnaround his NHL team and create a profitable business. He claimed that these strategies are no secret and are applied to his billion-dollar payroll processing business, Paychex, Inc.

• You must have a quality product and offer it at a quality (fair) price.
• The team (or business) cannot lose money. Many other NHL owners are willing to take any measure that would ensure a winning season, even if it includes losing money.
• Golisano said that his management watches the expenses very closely. If cutting payroll and losing key players prevents the Sabres from losing money, than that is what he will do.

In addition to taking a closer look at improving parking, traffic flow, food services, and game presentation, Golisano talked to us about the ticket pricing strategy that he implemented. It was the first time in NHL history that a team adopted a variable pricing strategy based on ticket demand. Tickets are priced higher for the more popular games, and priced lower for the ones that do not fill the arena.

The Sabres fans in the audience were thrilled to find hockey pucks at their table that Golisano later autographed. 

Breaking News Announcement

Earlier this morning came breaking news about a company familiar to both Rochester and RAMA – SIGMA Marketing Group, an industry leader in knowledge-based marketing. SIGMA, along with its lead investor DeltaPoint Capital, announced the acquisition of three marketing companies: Creative Communications, Inc., eLocal Marketing and Strategic Targeting, Inc. The company also announced the appointment of a new executive management team.

As the Communications Chair for RAMA, I had the privilege of interviewing a colleague of mine from the RAMA Board of Directors, Barb Cote, who is the VP, Membership, as well as the Chief Creative Officer for SIGMA Marketing Group. Here is what Barb has to say about these acquisitions.

D-D: What is the strategic vision for the combined company?

Barb: “SIGMA is an end-to-end marketing services firm that is rooted in customer- focused solutions. This new vision has four components; the first is our core competency of knowledge-based marketing, which has been SIGMA’s foundation since the company began. The second component is multi-channel marketing – the ability to deliver services through storefront, Internet, mobile, print, TV, radio, mail — whichever channel the customer prefers. Third, we have adopted a media-neutral position that will allow us to recommend the optimal media mix. Lastly, SIGMA remains brand-focused — everything we do for our clients will enhance the value of their brands.”

D-D: How will the acquisition of the three marketing companies (an advertising agency, Internet marketing company and analytical company) change SIGMA’s product/service offerings?

Barb: “SIGMA can now meet a wider set of client needs, with the ability to provide a broad range of marketing services through a variety of channels. Our services offered will include Internet marketing, mobile marketing, advertising, database marketing, marketing analytics and branding. In addition, SIGMA has also acquired MarketMiner, a proprietary software solution. MarketMiner is a suite of highly automated marketing analytical tools that will offer clients enhanced insights and quicker results because analyses can be performed in real-time. Along with our expanded products and services, the acquisitions have also led SIGMA to focus on a new initiative that we call ‘Reality Marketing.”

D-D: Can you elaborate on “reality marketing?"

Barb: Today we live in a world where virtual activity has replaced much of what was once only done in live space. We can simulate almost everything — tastes, relationships, even customer behavior. Why do we need the real, when the virtual is easy and predictable?

It shouldn’t be a surprise, but our customers are real. They behave in real ways in real time. Throw them a virtual solution and they will do virtually nothing!

SIGMA is committed to helping our clients stay REAL to their customers. It starts by taking a “here and now” approach to interacting with them, by tapping into and delivering real and relevant information that reflects their needs and desires at this very moment. Think of it as taking the “pulse” of your customers in real-time.

D-D: How does this differ from the company’s original strategy as a direct marketing company? 

Barb: “Our foundation still revolves around leveraging customer data. Now, however, we have the technology and expertise that brings solutions to market in a fraction of the time it used to. We also can provide a seamless, brand-focused message across multiple channels using the best media mix — all based upon current customer insights  — not information that is six months out of date.”

D-D: I understand SIGMA also announced today the appointment of a new executive management team comprised of leaders from all four companies. What type of impact will this have on SIGMA?

Barb: The new management team significantly impacts SIGMA because each person brings extensive experience in a particular area, and that allows us to expand our products and services into new markets. For example, Kenyon Blunt, our new CEO, founded and managed two companies, Bullseye Marketing and eLocal Marketing — Bullseye focused on database marketing and eLocal did search marketing and permission email — his experience in those areas contributed immensely to SIGMA’s new strategic vision and our new product and service offerings.

The same can be said for Max Coats our Executive Vice President from Creative Communications, and Jerry Montgomery our new Senior Vice President from Strategic Targeting, Inc. Max brings to SIGMA over 20 years of experience in strategy, branding, creative direction, mobile marketing, Internet marketing, and data mining.

Jerry Montgomery brings 17 years of direct marketing and sales experience, and 25 years of data mining, statistical analysis and advanced decision system development experience. Jerry actually is the principal architect of the MarketMiner suite of analytical tools that now reside inside of SIGMA.

Our President, Jim Byrnes, who has been with SIGMA since 1993, has been involved with overseeing business development and operations throughout his tenure. He has utilized his extensive experience in database marketing to keep SIGMA relevant as it has grown over the last 14 years. Jim has more than 25 years of experience in relationship marketing and he remains committed to providing best-of-breed solutions for every client.

Check back next week as Barb has agreed to speak to me about SIGMA Marketing Group's next steps.

The Next Big Idea

I recently attended The Next Big Idea - East: The Future of Branded Entertainment conference that was held in New York City.

This is one of the most comprehensive branded entertainment conferences in the industry. The conference was a day long event that consisted of networking opportunities, panel discussions and presentations on how to make and measure deals; the convergence of sports and entertainment; product placement and video games; creating integrated marketing campaigns, and much more. Keynote speakers included representatives from CBS Sports, Billboard, Massive, Armani Exchange, TBS, TNT, Sony Corporation of America and Brandweek to name a few.

It was very interesting to learn how 2005 has taken marketing in a new direction. Many companies and individuals make “buzz” the key factor in building an entertainment brand. Product placement, branded sponsorships, celebrity association / endorsement are the future of branded entertainment. Brands are now heavily dependent upon word of mouth promotion.

We’ve also seen the rise of virtual persona such as the gecko in all of the Gieco ads.

TV is still the core of advertising & marketing plans. However, the distribution of information is changing with the introduction of pod casts, PDAs & cell phones - distribution over multiple mediums with consistent messaging over each medium. We’ve also seen that interpersonal networks are becoming extremely important. If you think about it, kids in particular are not aware of much outside of their network.

And finally, media is changing. We now see advertisements in the most bizarre places – turn keys at the subway, on the nozzle at the gas pump and even in bathroom stalls. Overall in the world of branded entertainment, marketers look at the brand to provide entertainment.

The Next Big Idea - West: The Future of Branded Entertainment will be held on January 17, 2006 in Los Angeles. When you register, be sure to register as an AMA member to take advantage of the $200 discount. To find out more about the conference, visit this link.