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DAY ONE 12 ways of Christmas

Simon Lambert – Pointactive Ltd
Tips of marketing effectiveness It is difficult to strike the right balance between planning and doing Chasing too many ideas will result in little reach of customers 1. Re-join the company Feel the newness of working for the company through: ● ● ● ● ● discovery critical eye making small changes clearing desk redecorating or changing the office plan

3. Put the customer first Business should be more relationship driven because it is more relationship driven nowadays. 4. Make your customers be your sales force put the customer at the heart of your planning ● knowledge banks will be empowered ● get customer insight ● keep your existing customers (who generally buy more than new ones) ● Don't make clients chose your competitors Example: NESPRESSO impeccable service, complimentary chocolate and WOW factor gets the one speaker to tell 100 forum delegates how wonderful Nespresso system is! ● ● ● ● ● remember Pareto's 80/20 rule prompt service pick up the phone work out complaints thoroughly listen, listen, listen!! (to your clients) ●

2. Get a deeper understanding After a fresh understanding of your company, get a deep understanding: ● ● look for new opportunities use the trust of your clients to reach new heights (TESCO example with financial services)

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5. Get yourself a criminal record ● ● steal other people's good ideas (Example: roll on deodorant) if there is a particularly good event you admire, ask yourself why you liked it and re-apply all possible characteristics look at wildlife... (Example: bird of pray)

Improve the knowledge of the primary target Draw detailed portrait of targets (profiling) Find out the reasons why they buy or not buy Discover the co-values of the clients (TESCO uses loyalty cards do draw highly detailed portraits) Especially smaller businesses, must decide where to be and for whom 8. Build your brand Examples: Microsoft empowers Nike frees your potential Disney makes magic NASA puts men on the moon The company must live the brand!! The brand should be communicated to your company and within the company so that it will be clear to all. How to deliver the brand? Keep communicating: people need to know you are there and you can help them.

Use multiple channels of communication: ● talk face to face ● or telephone ● or write!! Digital channels and media are important: advertising spending on Internet has increased by 21% in 2008 ● it is very accessible to businesses outside the mainstream Advertising must be absolutely, creatively brilliant: ● ● ● ● must have impact should be informative should be “right” for the brand (To obtain this, give a tight, well thought out brief!) ●

6. Tackle the roots Before getting to the stage of activity planning, rediscover the roots: ● ● ● ● do not address symptoms, tackle the original issues use SWAT analysis to check validity of past strategies identify the One Great Cause that might be behind a number of Issues learn the art of saying NO! (to time consuming, focus wasting “good ideas”)

9. Update your address book Tend the CRM system Update the contacts' database, expanding collateral information Do not spam with irrelevant information, keep the clients informed of the news that might actually interest them

7. Fire your last shot first Be selective and precise Re-consider ALL possible target customers

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10. Be critical of what you've done Review the past marketing activities and the results they brought. 11. Celebrate success Prefer the short term objectives over long term one Share success with the customers, if possible (get testimonials!) 12. Have the right attitude Keep looking for opportunities! CLARITY relate to all the above resolutions! What is your resolution? Q&A Recession marketing? Depends: usually, no cash, no party. But, if you have cash, increase the SHOUT! During recession, people are looking for value and are going to be more discriminating.

Marketing budget? Possibly between 5 to 10% of the turnover. If the budget results as being too small, better to keep it in your pocket Sales vs. marketing? In small companies, this functions can be carried out by the same person. In larger companies, the risk is to duplicate activities in the two divisions. Yachting: lifestyle business or pleasure business? Strongly emotional territory Self reward pulsion... We WILL come out of the recession and good brands will sell. Remember that people buy benefits, whether rational, functional, emotional... or else. It is important to tie a brand to an (ONE) emotional benefit (pre-empt the one emotion!)

The Art of Marketing

Malcolm Hall and David Holzer – Compass design Creativity: ● ● ● develop idea to reach target audience attract people's attention to convey message Which is the inherent drama of a product?

Peter Neumann – Marine Marketing Service GmbH Marketing is made of: ● Stuff that you show (yachts, parts, etc.) Page 3

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Stuff that you cannot show (services, insurance, etc., secrete/private launches)

Which is the importance of photography? What about an image that becomes part of a brand? Peter Neumann answers: One can create brand through photography... yachts are beautiful, engines are ugly (someone could challenge this last statement...?!) Pay great attention to technical details of the parts/ship which are pictured!!! Clients are usually more technically proficient than expected. Expect to pay good money for good photography Photography of yachts is very specialist photography! On a rubber dinghy? On board of a helicopter... yachts are difficult to picture, they are all different but they have a best side. See the beauty of the object. It is always difficult to render the tridimensionality of yachts on images. Best examples? [Oscar Faragher] see Lamborghini newest campaign (re-branding of old brand)

What about advertising spending? Online stuff is increasingly cost effective. Focus on that! David Holzer answers: We are doing more and more online film! Coffee table books are always very useful, long lived (example: yachts' books by Royal Huisman), clients come to the shipyard with the book full of post-its to find out more information. When they go out with their answers, the shipyard has probably made one more order too!! Film is a 30” quickie and then it is gone, and it might be expensive Many ship building shipyards do not understand the value of very good imagery that they can distribute around the world and get printed centimetres. (search Carlo Berenghi, photographer) Best practices? (search Spars photography) YCO consistent application of the idea across media

Roger Gray – The big picture Understand what customers really want instead of what we think they want Ask, ask, ask!! Maybe clients are interested in getting, not so much a different product (which could be standard) but a different standard in aftersales service Q&A How to stand out among so many advertising pages? David Holzer answers: Look for not just impact, but for appropriateness! Memorability Reinforce awareness It is always difficult is to create NEW ideas!

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Wallies: close ups, details only, great imagery that gets double spreads in the magazines Edmiston: strong, bold, design, big budget, colour, quality of photography How to ask the client? Apart from summoning the sales force, get clients together to an event! In case of small budgets? ● ● Get sales people the best tools to go out and talk to the clients face to face. Use Internet... and the company's Web site: invest in Search Engine Optimization, update information quickly and inexpensively, make available more information, accessible any time (almost any place, especially considering smart phones, etc.) Differentiate yourself from the rest, be clear about who you are and how you're different

Show of Strength
Farouk Nefzi - HISWA Holland Yachting Group Influence the people around high net worth individuals! Through: online, print, TV and events Clive Bartlett - Saltwater Communications Ltd Single out the exhibitions we need to do rather than those that we wish to do. Carefully consider cost: not just the structure at the show but many other costs (time away from the office?!) Invite the customers!!! Tell people you are there! Tell what you are going to do (launch new product/service?) Beware to have enough sales force to entertain own clients and new clients. Event: do it for a reason! Let people know what the event was about! Communicate it early in the meeting, not later (when people might have left) Learn how to use a microphone! Do not assume your voice is loud or clear enough

Use the best presenter!! Even if he is not the salesman. Make it short. Flashy (bulky) gadgets are not so useful. Not too big (flight home?) USB keys are good to save the documentation (and be re-used!) Jeremy Doe – Oxygen exhibitions Budgets have to work harder for the companies Points to make it to the show: Minimum 6 months time to prepare for a stand Get best price, build a relationship with the contractors Explore the design of the stand, to make sure the brand is transferred Position of the stand carefully, considering its relationship with the product/service Size and shape: open? Wall space for imagery? How do you entice people (in)? Cubicles within? Plasma screen, space and size Page 5

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Traffic flow? Carbon footprint, recycling booths, reusable stands Giveaways: do they have a message? (example: puzzle wooden links, bring winners back to the stand to drop business cards, than put on the web site for follow up) Clear design, fewer the words the better Shape: long and narrow if a fast passage lane Need for meeting areas? Comfortable? Perched? Quick flow? Trap them upstairs? Product up front? To get people talking... Eye catcher (not always a plasma screen) Team: stand contractor (treat them like your own) + own team, teams should meet, deal with the issues and overcome them, improve the following year, although a stand can be reused for many years, look for at least a 2 year contract Train the staff to whom are the key people Look like the team Consider the culture of the country you're proposing the sales to (example: A lady in

the stand alone is an absolute no-go in certain countries) Attention to handling charges (have increased dramatically, check!) Electricity charges Sea and air freight times Stand builders in the United States might have to be American in the future Beware of fear of not being “there” when everybody seems to be! Fear is the mother of all cock-ups! ;) Better be present at events of different geographical regions for different boat segments. Huge budget crunch during 2009. Has made lots of companies necessarily review their events presence.

Q&A Dubai vs. Abu Dhabi?

Dubai has more yachts, have good surroundings but have too much people traffic, should differentiate between the VIPs and the rest. Abu Dhabi has too few yachts, too far, little entertainments, but royal family will put pressure to bring boats over. In the whole area: good hotel structures, and Dubai is offering a great entertainment system

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Fort Lauderdale show? Problem: very large number of segments, too many? Floating tented areas in front of the boat to improve privacy for brokers and clients. Top 5 shows? Monaco Yacht Show (great for B2B!) METS Amsterdam (great event, not fair) Fort Lauderdale Dubai area (for the future) Clients (Russia, China, Middle East) will start from the high end segment of yachts. They will not grow from the bottom up as usual. These clients will be only too willing to travel from their nations to the shows

Close coordination with sales force Lots of marketing opportunities: must operate a choice, stick to the core principles Get exposure of yachts (not so much of brand) Two fronts: wholesale sale (to brokers) and retail sale (to clients), most part of the budget goes to communicating to the brokers' community Prefer Lifestyle publications Differentiate between prospective clients who are already owners of yachts and new ones. Communication to other brokers: printed materials like own magazine, brochures, etc. below the line communication is very important. Marketing to emerging markets: have independent brokers around the world to cover the areas. Marketing is common sense. To draw a strategy, is it better to use internal or external people? Definitely internal people because they know well the brokers who are their primary target.

Moscow show: brought no results. Potentially gave the opportunity to old clients to meet other brokers! Julie Drummon – The big picture It is of the utmost importance to get to know your audience. Best to build relationships instead of spending thousands on advertising Keep consistency of the brand through company personality, behaviour, etc. Simon Lambert – Proactive Ltd Think before you act!!! Agree on strategies Activity and execution will just be the righteous fallout Peter Neumann – Marine Marketing Service GmbH Get brilliant people with brilliant ideas Start small and build something, over long periods of time Cannot break in the market before 5 years

Building a Business & Marketing Strategy
Laurent Perignon - Camper & Nicholsons International First of all, the budget and allocation of resources. At C&NI there are five divisions that struggle to get weight

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Q&A Industry actors are too fragmented, should yachting look up towards the aviation industry? At the moment, there are 14.000 jet orders... maybe it would be a good idea to study the marketing styles and best practices for the jets industry! Media monopoly decide where to be and how... Yes, and the advertisers should take more control and get more influence! C&NI says: The main activity of associations should be to entice people to yachting, to promote the idea of yachting. Shows for Millionaires? Lots of young ladies looking for husbands, have quality goods but... ambience, organisation, catering are poor. They are useless. One could find clients only by luck!

The Great Brand Debate
Alison Craddock – Ocean Independence Ocean Independence is a three years old brand A brand is more than a logo ● ● ● it's identity, reputation based on genuine qualities of a company it's a living entity

winning examples: Avis “we try harder”, Apple “think different”, Adidas “Impossible is nothing”

How important is branding ● ● brand equity=greater profitability good reputation=consumer confidence (trust!)

Tampering with brands ● ● ● ● ● consistency vs. relevance not avoidable in case of merger change can be managed equity can be leveraged re-branding could be an opportunity

How brands communicate? consciously: advertising, customer relations, corporate documents, marketing materials subconsciously: developing a personal relationship Brand positioning ● ● ● define target audience memorability defining what sets you apart from your competitors

Brand evolution of Ocean Independence, established in 2005 ● ● ● ● ● ● ● MYS show branded materials including uniforms newsletter stationary web site, etc. “Global vision. Local insight” PR through the sale of Annaliesse

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2008 acquisition of Cavendish White ● ● ● ● ● have become the 2 largest charter fleet in the industry merger strategy: joined branded phase of 6 months (included even the way telephone was answered!) joined colours (red/blue) little campaign “one vision” meanwhile... the major re-branding was preparing, ready for the MYS

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double-story stand branded uniforms, etc. will roll out web site next/soon

The original brand should be “your best friend”! Visualise your best friend! It is the character of a company It is the DNA of a company (cannot have people go off and do their own thing) One might tamper with the brand, but pay attention who will react and how! Traits of a brand can change... like a personality. Patrick Coote – Fraser Yachts Monaco SAM Have joined Fraser only two years ago Fraser's brand suffered by Edmiston coming out When rethinking the brand, they found that lots of colours in the industry were preempted, but brand is not just colour! From research they found that: the perception was that Fraser had solidity, integrity, honesty With Internet, in general came a graphic branding of bold colour and wacky names Fraser asked London companies that dealt with hyper-luxury brands and found out they should not betray their past with a Page 9

Laurent Perignon – Camper & Nicholsons International C&NI don't brand a lot because they exist since a very long time. Never re-branded They try to evolve the brand through imagery Defensive position, mainly Lisa Peck – YCO started with 3 yachting captains the brief was to be: innovative, dynamic, always evolving wanted to stand out without shouting Mark Duncan – Yachting Partners International There are not many successful brands, although everybody tries to have one Many fall on the implementation of the brand (in the long term especially!)

Brief for re-branding “To create a powerful new brand in the yachting industry which acknowledges our roots but clearly conveys our new standing and position.” ● ● ● Carried out an employee survey for voting the name. Became Ocean (the nickname already used in the industry) Graphically: new colour palette: brown, light blue, warm grey, green, violet; creation of a pattern

At MYS the evolved brand was unveiled ● MYS party invitations without logo (not to ruin the news of the new logo)

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pedigree but should also talk about the future They built on the strengths they have Q&A How do you measure brand health? do not have strong brand-measuring departments ● measure mainly by feedback from clients ● measure by profit ● listen to the brokers (are they proud? Do they use the company material?); best of all, brand should be developed with the brokers! After all, they are the living brands! Example: ZARA, no advertising, only location, size, product, geographical visibility, store style, etc. Exposure on printed media: not always important a number of pages, maybe it is better half a page with editorial above! Opinion on Newsletters? C&NI: at the beginning the brokers did not understand it. Two years later it is the main marketing tool that they are using. It talks ●

about lifestyle, news and bring in advertising. It is economical (drawn inhouse). Best investment for C&NI they break even with advertising. MUST be backed up by the sales people. From OCEAN: it is one of the cornerstones of branding, it exists since 3 years, brokers love it because it encapsulates all successes and they can contribute. It makes the brokers come together (especially in cases of offices all around the world). It stays as a newsletter because it will stay independent. It's done completely in-house. Should be contributed to by all people internally. Fraser: start small (don't say monthly periodicity at the outset). Ask the customers what they want to read about! Might be worth evaluating a eMail distribution YPI: important tool, the content is critical, must be well written, information should be exceptionally relevant to the company and to the clients. Otherwise, it will be binned and this will eat away at the brand equity.

Photography Budgets? C&NI: one photo shoot a year of the charter fleet for economies of scale, have done photos in Antigua to ten of the yachts they had there. Very worth investment. Fraser: get the rights! Commission a shoot of 2-3 days with a model (10.000 Euro plus) YPI: little direction to the photographer will produce many unusable shots. Photographer must have a brief to be successful. Think 1 year- 6 months ahead. Photographer from floor: do follow the guy around at all times and give clear indications to her in order to get exactly the shoots you want!

To ride through the recession, the industry will need 200 new orders, globally. Feadship is cutting marketing budget by half. Edmiston too. But... probably, overall business will stay the same.

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Setting Budgets & Sticking to them
Clive Barlett – Saltwater Communications Ltd Web sites must be kept up to date. Advertising should be directed to the web site. Printed (half pages) should be directed to the web site. For next year, budgets should be (maybe dramatically?) reduced. Pet projects will have to go. Sponsorships will have to be put on hold. It takes a lot of money. Charitable sponsorship: okay, but be very careful where the money actually goes to. Remember that recession can be an opportunity to gain market share (if reserves allow for it!). Keep focus, pursue objectives, increase communication within the organisation. Magazines will suffer a bit. A down turn in the media is already been seen, might be a time to get further discounts. TV advertising is going to be decimated.

Every aspect of marketing is going to be slashed. The marketing plan should be flexible to fast changes of the environment. Laurent Perignon – Camper & Nicholsons International Marketing budget equals, usually, the 8-10% of... of what?!! Some refer to profit, C&NI calculates 4-5% of gross profit minus commission to brokers. Budget is based on the previous year results. They do quarterly reviews of the budget. The buffer budget could be used to explore new possibilities but probably NOT this year. Their budget is calculated for external costs only (NOT internal marketing people salaries and expenses) Brokers are expected to clean up they marketing database quarterly, also in order to manage and reduce the production costs (magazine publishing + post & package)

Economies of scale for photo shoots, for example, take advantage of shows in order to organise one photo shoot with several gathered yachts. Split of media: is based on the revenues of the divisions. 60% revenue comes from brokerage therefore 60% of marketing budget goes to them. Printed media is big with brokers. The rest to charter marketing which however, would require more budget. OBJECTIVES are paramount to the importance of setting the marketing budget. Cooperative Marketing? (example shipyard with engine company) Yes, but look at the objectives and check for results.

Been seen in the Right Pages
Justin Ratcliffe – Freelance Photojournalist Fact checking: sending the article draft to shipyards, owners and owners' representatives can be seen as an opportunity to re-write the article. Not advisable. Page 11

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If a yacht is no good, journalist do not write about it. Some shipyards strongly protect their privacy and the privacy of the owners. Royal Huisman organizes great weekends on board for journalist, with naval architect, and interior designer and sometimes the owner on board. Exclusive rights or first publication rights? Counterproductive, should be stamped out. Phil Draper – Yachtbuilder International Journalists need a story. Need to know the reason why the yacht should be published, and any particular feature. Pictures are the most important element. Gather the material beforehand a sea test Criticism on boats: never really made Exclusivity or first publication rights: exclusivity is no good but first publication rights could be evaluated (depends much on the time frame involved)

The power of the digital world
Mike Dean – Equiom Trust Company Ltd Internet is great. It's results are measurable! It lets you see what works and what does not. 1. History and Development Hypertext How big? In 1990 300,000 pages, in 2008 1 trillion pages How many web sites? 126 Million Penetration 22% of world population 2. What is good and what is bad Welcoming, Clean, Easy, content, usability, etc. Be critical of of good and bad designs 3. Basic principles of good web design 4-8 seconds to make an impression, so first page design is vital Do not create very long pages, either section it or put in a PDF People do not read the web pages, they scan them!

How people look at a page? The F pattern! Write for your audience, not for yourself! Repeat visitors: get something new to publish or change the home page!! Use only relevant images and animations Images attract, copy sells! Flash animations: limit its use! (download time) Music: mostly irrelevant e-Mags: with page turners Bells and whistles in the wrong hands just make noise! Make it easy for yourself: use a Content Management System TEST the web site! Not just with insiders. Do not forget the contact details and make it easy to find it. Steve Filler - Videojug The world of video in general is on an upward trend. Online videos especially so! Videojug is a web site which publish “howto” videos that range vastly in subjects

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Videojug also create video content for its clients By 2012, online video, viewed through a PC, will account for 30% of worldwide Internet traffic 36% of people watching online videos also watch less TV Embedding videos helps to make web sites more sociable Google is now prioritising web sites that include videos!!! (What does this mean? Ask Yachting Box for an introductory paper.) All “The Guardian” journalists have been trained to video facilities Why incorporate online video? ● ● ● ● ● ● ● Clients will expect it Keep up reputation Increased revenue Showcase products and services Bring to life propositions Help people understand Impose brand personality

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Quality Volume Price the life span of the information the use of graphics to explain technology (usually very effective!)

Scattered thoughts: Apply the video SEO (Search Engine Optimization) checklist Videos don't just show what a product is but how to use it Script contribution from the clients? Engaging! Use of brand within videos that talk about something else! BACK TO WEBSITES: Marketing of web sites Word of mouth (your own people are the best salesmen) SEO: Search Engine Optimization Determine keywords (Tip: in Google's cached pages, keywords are highlighted; see also Google Keyword Tool) Consider the keywords attached to published images! Directories: only sector ones Press promotion (online and offline) External links for Google Ranking (search: link Bait like various kinds of calculators)

How to get the right content? ● ● ● ● In-house Through user contributions Paying a licence fee On a revenue share basis

How is the online video market? Can be shared easily around It is very collaborative (same content for many users/publisher) Google prioritises web pages with sharing tools and contribution snippets in their structure! Which Video platform? ● ● ● develop or buy off the shelf depends on the the size of the project formats/standard are much needed

How do you incorporate a video? Depends on:

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Link Checkers (check the competition and work at it) Adwords and Sponsored links (bidding) Banner advertising eLetters, eMagazines (the links should take you directly to the story) Extranets: require registration for improved content. Explore Blogs & Viral content Statistics and Measurement (verify Smartstats, Google analytics) Q&A The future? Nobody can say... due to ever changing technology Cost of videos? Anywhere from 2.000 to 30.000 Euro for a 5' film. Or, from €500 for a 1 day shoot, edited, with narrative... onwards!

Do You Have to Advertise? The alternatives...
Peter Neumann – Marine Marketing Service Gmbh Turn the clock back about 80 years: Dr. Kellogs and its all-bran lifestyle: “if you eat flakes, you're going to be healthy”. He was selling a benefit. So should do brokers when selling yachts. However, advertising is only one of the wheels of the Gear box to make businesses go different speeds. Simon Harrop – Brand Sense Agency Think about singles at parties... Firstly they look into the room to see who is attractive Then, they start singling out voices, hearing what people are saying... Perhaps, they might touch their partners by dancing? Smell their fragrance If they get lucky, they get to taste their partner as the evening carries on It's the same relationship between clients and products/services!

Maybe surprisingly, 83% of all marketing activities appeal to the eyes only! The point is getting the clients to kiss the products... quicker!!

Take visual screening in a city like Tokyo... walk on by, completely obliterating all visual cues until you will be caught dead in your tracks by someone wearing your mother's perfume. Irrational thinking is what really makes you decide. (it the frontal lobe area that allows for irrational thinking were missing, people would get into an endless rational loop).

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Example of the Cruise Liners (brand withheld) Firstly the brand has been understood, then the brand values have been interpreted, by the creation of mood boards... leading to the creation of cleaning products with unique fragrance that works very subtly Also, the crew: brand ambassadors, has been addressed (they have been given with deodorants with the unique cruise fragrance) Again, the brochure is kept in a perfumed sealed bag It is about building brand loyalty! Q&A What about the process to create a new fragrance for a brand? It is done through perception mapping: perfumers have a palette, that couple types of fragrances with emotions and adjectives. This palette is pretty globally recognised. Starting with the description of the brand and its values and its adjectives, the

perfumer can pick and mix ingredients to get to the right fragrance. Test have been carried out having presented the same message on screen and on paper and they found that paper is twice more emotionally connecting Super additivity factor: adding senses to the sensory experience will multiply the effect. How to apply this concepts to the yachting sector? Business card that can be recognised by touch! Paper can be perfumed... Mark Duncan - Yachting Partners International Radio industry (hearing) Radio: can be defined as the TV of the mind Audio: can speak of yachting to people who is actually yachting Conveys the Message and the Information In general: At this moment in time, focus on the core clients.

Get deeper understanding of our own business. Put the customer first. Get inside the mind of the customer. Think about the benefits. Have a PLAN. Think about the brand. Re-run communication processes between clients and sales force to see if they can be improved Pin down what you want to get out of photography, NOT just the looks but the results. Be critical of what has been done beforehand.

The Global Marine Marketing Forum was hosted by THE YACHT REPORT GROUP on 11-12 December 2008, in Montecarlo
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