The ace behind ABS-CBN’s new marketing strategy

The organizational restructuring of ABS-CBN’s sales and marketing units that led to the billion-peso advertising revenues for May and June is the brainchild of the network’s senior vice president for integrated sales and marketing, Nicanor C. Gabunada. In the first quarter of 2002, Gabunada integrated the sales and marketing units and introduced multi-platform selling and marketing, which yielded year-to-date figures for the network in terms of gross advertising sales for TV and radio.

Although the selling innovation is a pioneering trend in the local TV industry, Gabunada insists it was not patterned after that business strategy of any foreign media company. He implemented the cross-channel selling to leverage the network’s various television, radio, cable, regional and interactive platforms. Gabunada simply saw the need for the sales and marketing units to be aligned with the market realities in the media industry, with the integration efforts that fit squarely into the current market situation.

"With integration, we are the only group that can leverage the advantages offered by each platform and at the same time, allow the clients to maximize the benefits of being in all platforms," Gabunada explains. "That way, it increases not only a brand’s unduplicated reach among its target market, but also improves the impact and perceived bigness in scope of its advertising campaign. This is something that no other local network can match."

"Integration gave birth to a leaner, singular sales team working cohesively with one marketing team, one traffic team and one secretarial pool. The setup was also good in implementing a singular system of doing things and enforcing and adhering to well-developed standards."

ABS-CBN has undeniably become a stronger organization in terms of sale and marketing after it underwent organizational restructuring. As of June 2003, the Lopez flagship company has earned P5.1 billion from its radio and TV networks, representing a growth of 25 percent over 2002 figures and reinforcing its status as the country’s leading broadcasting network.

Gabunada attributes the recent windfall to the unwavering confidence of the network’s partners in ABS-CBN as the leading broadcast service provider. With Gabunada’s knowledgeable mandate, unique management style, leadership and expertise, comes a sustained client’s confidence in ABS-CBN’s integrated multi-platform offers.

"Hitting P1 billion on one month for the first time in ABS-CBN history and then hitting it again the following month is a strong affirmation of healthy corporate strategies on which our business is based," Gabunada maintains. "The global economic movements and the emerging changes, as well as the evolving media landscape in the country are factors that went into the acid test for true industry leadership. We have proven well that our leadership is built on rock-solid ground."

He also credits the network’s sales and marketing staff, who are all looking forward to another banner year for ABS-CBN.

"Our account managers are the penultimate jack-of-all trades," Gabunada boasts. "More than traditional airtime peddlers, we choose people on the basis of their potential to be honest as advertising consultant, not just to their ad-agency partners, but to brandsmen and seasoned marketing professionals."

"The frontliners in our marketing team are equipped with packages, events and promotional activities. They see to it that they face the battle for advertising monies. Our staff has the best ammunition in the form of cost-effective packages, strong campaign concepts and unconventional media vehicles."

Assessing the competition against rival network GMA 7, Gabunada points out ABS-CBN has always been a trailblazer.

"Imitation is the best compliment," Gabunada says. "GMA may be second to ABS-CBN, but it is definitely a far second GMA 7 is trodding the path that we carved out more than 10 years ago – more local productions, a talent development center, mass-based programming, provincial expansions, a UHF channel, going international and even listing their stocks in the stock market. But what is to be expected of a number two company? They try harder."

Gabunada, however, admits they encountered initial difficulty during the first few months of integration.

"It was initially tough," he says. "But later on, I was able to prove to myself and to my team that everybody, even the old timers, can learn new tricks. I am very proud of my team at sales, marketing, traffic and the support staff. They are a mix of new ones and relatively experienced people. There is a cross-pollination of wisdom gained through experience and wisdom gained through personal training. When they started getting comfortable with the present setup, we were able to prevent the outflow of money into the competitors."

Gabunada joined ABS-CBN in 1990 as vice president for research and business analysis. This Ateneo de Davao University valedictorian was armed with a bachelor of science degree in management engineering and a master’s degree in industrial economics from the Center for Research and Communication, now known as University of Asia and the Pacific. He previously worked as program and public relations director for the Drug Association of the Philippines (now Pharmaceutical Health Care Association of the Philippines), general manager of Pulse Research Group and as economist/consultant in various companies.

Gabunada believes his background gave him the synergy of skills and experience that makes him capable of doing the kind of work that he does now. When he was with a research company, he used to conduct marketing seminars and chased revenue targets by actively marketing research services to various clients.

He was in the best position to get a good feel of the entire media, marketing and advertising process. It was during client meetings and consultations that he got exposed to media selling and and marketing by industry pillars like Freddie Garcia (now ABS-CBN president), Freddie Infante and Cris Fuentes (both former TV sales directors of ABS-CBN) and the late Rolly Cruz (former assistant general manager of ABS-CBN).

"I got into sales and marketing when the industry was undergoing a transformation," Gabunada says. "Media buys are more scientific and are grounded on solid research figures, a something which I am strong at. My motto is give the best in whatever you do, a philosophy I got from my parents."

Gabunada admits he is also fortunate to have three seasoned sales veterans who works as his vice president in the sales and marketing department – Orlando Galang, Jose "Pitoy" Garcia and Dave Dominguez.

"We spent long hours discussing organizational directions and sales strategies," Gabunada says. "The articulate to the staff day-to-day implications of our strategies. They make calls to their own set of contacts to test the acceptability or unacceptability of some things we intend to do. They serve as my sounding board for crazy out-of-the box ideas. And our discussions extend to several days on every germ of new things that I bounce off to them. In the end, we crystallize sales concept and temper them with years of knowledge of individual client’s attitudes and idiosyncracies."

When Gabunada assumed the post as head of sales and marketing, the first two key words he imparted to his people are "empowerment" and "ownership."

"Empowerment means we should provide leeway for people to commit mistakes, but we do discuss how similar mistakes could be avoided in the future," Gabunada explains. "We set up a system where all my sales people are empowered to make decisions. They used to refer to their boss’ decisions on the level of concessions and additional media values that they can put into a sales package. More often than not, the delay in getting the packages or amounts approved postpones the closure of certain deals. The advertising executives (AEs) now have parameters to work on or refer to when making decisions."

"Ownership, meanwhile, means that the AE takes company policies and directions as his own and should be able to articulate such a decision among his clients. Everybody is mentored to be able to express what each company policy or direction is all bout."

Gabunada is optimistic that ABS-CBN is within striking distance of hitting more than its Year 2003 target income.

"For as long as our costs are contained within acceptable levels for 2003, then P1 billion in net income is achievable," Gabunada says. "But what comes first to us is our audience. We give them eye-candy, the best in news and information, premium entertainment, music to make them dance and sing with pleasure, sports program. Then hopefully as a result of working towards this higher vision, we achieve better ratings and our financial bottom lines."