Market Sexmentation

Have you seen the recent Carl’s Junior ad featuring the schoolteacher who does a dirty dance for the class?

I guarantee she would never pass for MY homeroom teacher. Apparently this is the burger chain’s latest promotion for their new Patty Melt (a patty with two flat buns) featuring the rap song “I Like Flat Buns.” This isn’t the first racy exposure from Carl’s. Remember Paris Hilton? If getting attention is the goal of this campaign, I’d have to give them a passing grade. The Tennessee Education Association demanded that they pull the ads and they have raised the ire of many in the advertising community.Let’s be honest, alienating the people outside of your target audience is a byproduct of controversial ads Often times campaigns such as these are aimed at highly profitable market segments such as teens. We may not realize it but teens spent $139 billion on consumer products just last year. So in essence this is just an ad campaign that is highly targeted to a very affluent, albeit young, audience. Carl’s is just practicing well crafted market segmentation. Or is that market sexmentation?Wikipedia defines “market segmentation” as the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.Oh yes, these teens have similar feelings alright!So what do you think? Did Carl’s go too far with this ad? Should teachers be offended? Or is it just a funny commercial?Take a look at the video here and give us your comments.

Listen to our LIVE radio show this Friday at 4 pm PST at: www.smallbusinesshour.com. Call in to speak with us at (323) 443-6878 code: 226287Have a great week!-Mark Deo

Making Direct Mail Work

If you’re like most small businesses or entrepreneurs you may have already learned that typical marketing, particularly direct response advertising is a waste of time.   

You spend lots of time and money creating a marketing piece. Maybe you hire a designer to create the right message with creative photos, illustration, copy and layout. Or perhaps you do this yourself, investing many hours or even several days in developing the materials. Then you pay a fortune to deliver the message to your prospective clients. This could be through the mail, email, web site, print ad, signage or other media.   
You have high hopes for a great response. You are sure this will take your industry by storm. The phone is going to ring off the hook. Then, NOTHING . Not a peep. Suddenly a few calls trickle in. In short your campaign has, at best, ended in a break-even proposition. You say, “never again,” only to find in a few months you rationalize and change a few things around, use a new media and give it a try again. Sadly this cycle repeats itself.  
Sound familiar?  
Or maybe you are doing great with your marketing efforts. You are getting double digit response. You have learned how to ATTRACT business rather than simply chasing it down. In either case there are some very specific things that we can do to significantly increase or chances of attracting business. I would like to cover these today with a special emphasis on direct mail.  
I think that many have become fed-up with direct mail and have abandoned it as a viable form of marketing. I can say by experience that nowhere are the rules of attraction more effective than they are in the direct mail arena. I know there are many that have tried using postcards via direct mail. It is a fact that 99% of these campaigns end in disgust and disillusionment. But I’d like to introduce three simple steps that will all but guarantee double digit response by properly using postcards. They are as follows:  
1. People hate to read so use design and color to SPEAK your message. 
2. Leverage emotions to focus on the problem rather than the solution. 
3. Create a simple, clear, no risk, compelling call to action.  
STEP 1: People hate to read so use design, imagery and color to SPEAK your message.  
If you have read this far you are in the minority. Less than 22% of all readers finish the article that they set out to read. Most say they “speed read” or “skim through” the article which basically translates to laziness. In addition we should note that 16% of the adult population has dyslexia which inhibits them from reading with complete comprehension. In any case most will say they just don’t have time to read. So why not learn to speak with design and color. Let me practice what I preach and SHOW you what I mean. Check out post card at the right. It has one image and a four word headline. Not much to think about, yet the message is obvious. This one has a little humor also. Another note: don’t take yourself too seriously. Also notice the use of negative space at the top left. This is a visual strategy to force the reader to actually read the headline. This image and headline also prompts the reader to do a “double take” and re-process the ad in order to ensure they understand the intent. This also is a tactic to ensure readership. 
STEP 2: Leverage emotions to focus on the problem rather than the solution.  
As I’ve said before, we have to raise the customer’s level of curiosity and increase their attraction by aligning ourselves with their problems. Most marketing messages say the SAME thing. They talk about what the marketer does, the services they provide, and the products they sell. Most customers are interested in the question: “What’s in it for ME?” Make sure your headline clearly addresses what’s in it for them. I would in fact encourage you to tell them what pain or discomfort they will avoid by participating in your solution. You will note that is what both of these postcards do. Certainly you don’t want to end up like an uninsured dear (road-kill). Nor do you want your children to be injured in an accident due to faulty brakes. In addition we need to create a way for customers to “try out” your solution. This lessens their risk and makes them more familiar with your solution. It also allows them some time to make the purchase decision. In this Internet age more people are spending time researching various options in order to make the smartest buying decision. In the postcard at the right I might change the call to action to read: “Call now for your FREE brake check-up.”  
STEP 3: Create a simple, clear, no risk, compelling call to action.  
Make sure people know what you want them to do. I have seen some great marketing messages that leave the customer hanging not knowing where or how to purchase the product or service. This is a pretty simple one but it is effective. They want you to come in to their store. I might change the call to action to read something like: “Come in and get our FREE color test.” Also make sure that you reverse their risk in some way. No one likes to be trapped. Often times customers fail to try alternative solutions or change suppliers because they thing that the “grass isn’t always greener on the other side.” I always recommend that we allow people to TRY our solution. This is why in marketing our Attract More Business Program we offer a FREE 5 day self study where customers can experience what the Attract More Business Program is all about. In addition we offer an unconditional money back guarantee with every program sold. By the way, we have NEVER had anyone ask for a refund. If you are confident in the value of your product or service don’t be afraid to offer some type of risk-free guarantee.  
Here are some other postcards showing the rules of attraction in action:
These postcards are both aimed at soliciting home improvement but the one on the top focuses on the actual service and the other keys into the motive. Obviously more room for a “newcomer” to the family. You may be wondering if this same three step strategy can be applied to your business. The answer is absolutely, YES! In our Attract More Business Program I take you step-by-step through how to develop your own marketing strategy and advertising campaign. This includes a branding strategy, concept, copy, developing headlines, selecting media and much more. If any of this makes sense to you please enroll in our FREE Attract More Business Self Study program. Simply go to www.attractmorebusiness.com.   
For more information on direct marketing check out this article that I wrote a few years ago:http://www.sbanetwork.org/articles/articles_view.asp?id=29   
By the way thanks to Zairmail for letting me use their postcards as examples. Check them out. These guys have some great postcards. I’ve used them before. They are reliable, affordable and friendly. Call them at: 1-877-239-1253 or www.zairmail.com Have a great week! 
I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or email mark@markdeo.com  
Mark Deo

Irresistible Direct Mail

Who says direct mail has to be boring? Who says direct mail has to produce 1 or 2% response at best? Who says direct mail is a medium of the past? I’ll tell you who – those who are doing the same old, same old direct mail. We’ve all heard Ben Franklin’s quote on the definition of insanity: to do the same thing over and over again, yet expect a different result. Let’s face it, if you are doing the same kind of mailings that you did 3, 5 or even 10 years ago you can expect not just the same response but a significantly lower response. What can you do to make direct mail interesting? Direct mail is often viewed as a type of “push” marketing. Yet if it is performed creatively, direct mail can become a powerful “pull” marketing strategy. We can use direct mail to create “attraction” rather than as a means of “chasing” business. All this can be done without in your face, pushy tactics if we are willing to take a step back and focus on the customer’s challenges rather than become embroiled in our solution. Direct mail is no different than any other marketing medium. If we can focus our communication efforts on not just what the customer wants but rather why they want it, we can align ourselves to the customer and thereby attract them to our solution.
Take the direct mall piece shown below. When it arrived on my doorstep, I had no idea what it was but the 8 x 10 inch envelope with the eye staring at me and the headline: “Ready for a SHOCK? Then open this” did have me wondering. I usually trash this kind of stuff but something about this had me curious. I guess the headlines were right up my alley:
“Jack Welch was wrong. Dead WRONG.” “Next recession in 2011. BE READY.”
“America’s 3rd great MIGRATION has started: $1 trillion dollar opportunity.”
That got me to open the envelope. When I did, I found this was an offer for Peter Drucker Institutes new on-line E report, “TRENDS.” Also in the package was a CD and several inserts. One was a letter customized to me (host at CBS Radio). Also enclosed was a very well done interactive CD, a brochure discussing the problems I face as a radio show host finding accurate time information about business trends, a response card (pre-filled out!), and a discount coupon.

We talk a lot about the rules of attraction and how valuable they are in direct marketing. This mailer included several. Let me list them so that you can build them into your own campaign:

  1. Become a big fish in a smaller pond. It was aimed at business journalists and included information only valuable to them.
  2. The problem is more important than the solution. It focused on numerous problems that we will be facing in the coming decade. Many of the same things I talk about on my radio show and in my weekly articles.
  3. Give information away without selling. It included a FREE subscription for 1 month and the CD which was crammed with 20 excellent articles.
  4. Reverse people;s risk in changing. It had a discount coupon for $100 off.
  5. Don’t be a better option, become the ONLY solution. I don’t know of any organization offering this type of information.
  6. No one has time to read so let design and color speak. As you can see it included compelling graphics, a tasteful layout and colorful design.
  7. Traditional advertising is a HOPE business. This was not your typical mailer. I suspect it cost 2 or 3 times more in production costs than a typical mailer, but was sent to far fewer people, all of whom have a higher interest level in this kind of information.
  8. Learn the discipline of testing. It had a pre-numbered savings code so they could track the response to determine which offer was most successful. I assume they tested numerous solutions.

This is a great example of a powerful, well-conceived marketing device. One particularly good thing about the piece was that it carried much of the message on the envelope itself, motivating me to open it.

Think about ways that you can implement these strategies in your own direct marketing program. If you get stuck, give me a call or send an email and I will do my best to help. Also check out our new program, “Attract More Business” at www.attractmorebusiness.com for a step-by-sep approach on how to do this. The program includes dozens of examples, a 150 page manual and 9 CDs that you can listen to in your car, making it a practical learning tool.

Have a great week! I hope that this “Business Update” has been helpful in assisting you to improve the performance of your organization. For more information on how the Small Business Advisory Network assists companies in improving their performance, please feel free to contact us at 310-320-8190 or emailmark@markdeo.com 

Mark Deo Print this article.

Giant Brand, Guerilla Tactics


Recognize that movie poster? It won critical acclaim from the design world for the Oscar winner “Walk the Line” last year. Designed by artist Shepard Fairey, it never would have happened were it not for the wrestler Andre the Giant. 

You’ve probably seen Shepard Fairey’s “art”. If you’re under 35, you’re likely very familiar with it, and if over, you’ve probably seen and ignored it all. Shepard Fairey began a remarkable branding campaign in 1989 in Rhode Island as a joke. As a student at the Rhode Island School of Design, he created a silhouette of the famed wrestler Andre the Giant to show a friend how silhouettes could be made of virtually any photo. As a joke, he decided to place the image on a sticker, with the text “7’4″, 520 LB., Andre the Giant has a Posse”. Intended to mock underground skateboarding culture, these stickers were placed all over Providence, Rhode Island- on the back of street signs, streetlights, traffic signals, buildings, etc.

Getting lots of feedback from friends in the skating community, Shepard took out an ad in a skateboarding magazine featuring the image and a P.O. Box, with a note urging people to send a Self Addressed Stamped Envelope for more information. He would send back a few stickers, a template to use for printing more, and a note urging the recipient to spread the message. 

I can recall personally seeing these stickers in Pittsburgh, PA in 1992, as well as in Los Angeles in the early 90s. Shepard Fairey then transitioned into a more stylized image, and created other silhouette styled images that were incorporated into posters that mock government propaganda with the word “Obey” featured prominently. 

The end result? His work has been seen in numerous films (including Batman Forever, 8 MM, and others), is now designing CD covers, movie posters, and t-shirts, and has built a visual brand among persons who were young adults from the late 80s until now.

What is most interesting is that Shepard Fairey created a brand without a product! When he started, he had nothing to sell. He’s created a legion of fans who spread his message for him, and that has led to mainstream success. Whether you like or dislike his tactics (many view it as simple vandalism), the result cannot be denied- mainstream commercial success.

What can you do that will generate interest among your target audience? How can you encourage persons in your network to spread your message for you? What can you do to brand your company, products, or self to spread your message?

I’ll get this started for the SBA Network. Please take this article (or any of ours) and share it with a friend. 5’9″, 170 pounds. Mark Deo has a posse.

SBA Network Sales Technology Specialist Matt Walker wrote this article. To reach him, send him a note at mwalker@sbanetwork.org.Have a great week!-Mark Deo

Direct Marketing

Why is it that some people make BIG money with direct mail and others lose their shirts?

Is it the packaging, the postage, the copy content, the design or layout, the offer, the promise, the guarantee, the response device, the cost, the list, the database management or the timing?It is all of these things and sometimes none of these things. Big help so far, huh?Overview 
Like all types of marketing, your efforts are only as good as the weakest link. Remember there is no guaranteed formula for success with anything. Every situation demands a different approach. You wouldn’t go about selling computers through the mail the same way you would toothpicks. Nor would you sell suntan lotion in Alaska the same way you sell parkas in Hawaii. The most important thing about a direct marketing program is to put yourself in the customer’s shoes.You may be saying to yourself, “Thanks Deo (that’s me),I already know that.” But you would be amazed at how many times I have seen “wishful thinking” replace logic in such situations. We must be willing to remove ourselves from the process when planning a marketing campaign, and truly take on the role of the prospect. This is why the perspective from an unbiased professional can be so valuable.With this in mind let us begin to look at some of the variables that contribute to success or failure of a direct marketing program.Packaging 
The direct mail packaging typically consists of an envelope. Although some direct mail packages utilize boxes, bags, tubes, and an assortment of odd packages, these may be great for getting attention but they are costly. In the proper circumstances, however they can be very effective. I can show you some very unique direct mail packages that have generated 5 to 10% response. Remember that the front of the envelope or package is your first opportunity to get the prospects attention. It is also an opportunity to target your prospect.For example making a statement such as “FREE Seminar Information Enclosed” or if you are mailing to buyers of fishing equipment, making a statement on the envelope such as, “Great Deals on Fishing Gear and Tackle,” would be appropriate. It is statistically proven by the Direct Marketing Association that personalized envelopes generates 20 to 30% better response than non-personalized envelopes. This also helps with tracking response and cleaning the list.Content 
The direct marketing package should be prepared in such a way so as to engage the customer. By this we mean that it first demands attention, gets them interested and then gets them involved. It should include some type of compelling imagery (photo or illustration), as well as a powerful headline. The best headlines are no more than five to six words. The best words to use are simple, easy to understand preferably one, two or three syllable words. Write your copy or headline so that it could be understood by your average 10-year-old.The content of the direct marketing package should clearly describe the product or service. It should also outline the benefits the prospect will receive once purchasing the product or service. Since people buy emotionally rather than logically, the best copy powerfully shows how the prospects life would change as a result of having the product or service. It satisfies the question of; WHY the prospect should own the product or subscribe to the service. Evidence is critical here.Testimonies, endorsements, examples of success are all great ways to build credibility in the direct mail device. Many direct marketing experts claim that a long letter and more material included in the package produces a higher response. Certainly this costs more, both in postage as well as development. It seems that many people believe that more is better. However I have seen very successful direct marketing packages that include merely a one-page letter, one page product benefit sheet, and a response device addressing the critical information. If you follow the above checklist, you should do well, even if you don’t mail a ton of material.Response Device 
The response device is a form that makes it simple for the customer purchased product or service. A good response device should include the space for information such as name, shipping and billing address, phone number, email, fax number, quantity purchased, unit cost and total cost. It should also include payment options. A good response device can be completed in less than 3 minutes and provides ALL the information necessary to ship the product or provide the service. It should also include a carrier (as it is known in the direct mail world). This is a return envelope so the customer can send in payment. It should be pre-addressed and postage pre-paid. I also suggest including a fax #, email address, and toll free number for order placement.Product or Service Being Offered 
Products or services priced at more than $100 each typically are more difficult to sell via direct mail. They require a more sophisticated approach. This means building greater credibility, incorporating testimonies or endorsements, showing several photos of the product, and including compelling evidence that the product is worth the price.Direct Mail and Telemarketing 
In many of these cases I recommend that my clients utilize a mail-call-mail type of direct marketing program. This mail-call-mail program involves placing a telephone call (See Telemarketing White Paper) following the initial mailing. This call should be placed seven to ten days following the mail drop, assuming that the mail is sent third class or Bulk mail.Bulk mail typically requires three to five days to reach its destination however in some cases it can take as long as seven days. The telephone call following the mail piece allows the customer to be reminded of the offer. It also allows the customer the opportunity of getting their questions answered, and motivates them by communicating the benefits in an interactive way. This telephone call can add as much as 50 to 250% to the response.Typical response rates for direct mail alone range from 0.5% to 2.5%. Response rates for direct mail WITH telemarketing typically range from 7% to 30%. The final mail piece allows the telemarketing salesperson to follow-up with the customer in writing. This, in itself builds credibility and permits the customer to receive any additional information that might culminate in the sale. This also helps to strengthen the accuracy of the database. And, in a mail-call-mail program it is critical to maintain an accurate database of prospects (See Database Management White Paper). This can be done with one of several inexpensive, off the shelf, contact management programs such as ACT!, Goldmine, Microsoft Outlook, or others.The Purchasing Process 
I’m constantly amazed at how many people have attempted a direct marketing program without doing the slightest bit of research. How are your competitors selling your product or service? Is it typically purchased at a retail location? Does the customer typically negotiate price? How many stores do customers typically visit before purchasing the product or service? Answers to these questions are absolutely crucial in determining whether you’re going to make money or lose money on your direct marketing program.Results 
Evaluation of your direct marketing program should not be based on the number of sales or even the percentage response. It should be based on your return on investment. Return on investment is simply calculated by taking the total cost of the project (which should include cost of design, layout, printing the mail piece, postage, letter shop, any costs incurred by the mail house, telemarketing costs, even your time) and dividing this by the total profit generated as a result of the direct marketing efforts.For example, if the total cost for direct marketing program is $5000 and profit is $1000, your return on investment would be 20% (1000 divided by 5000). Often times it will take two or three mail drops or telemarketing campaigns in order to generate profit from a particular list or geographic market segment. Typically the first drop and the first telemarketing campaign will generate zero return on investment, perhaps even a slight loss. The second and third attempts however should generate 25 to 50% return on investment. Successful long-term direct marketing programs can typically produce upwards of 200 to 300% return on investment. This often requires testing several solutions (See Testing White paper).Controlling Cost 
The best way to the control cost of a direct mail program is to figure out what all of your costs will be and how many products you need to sell in order to achieve a specified return on investment. We call this the R.O.I. Pro-forma. This evaluative tool should be used PRIOR to the mailing to help determine how much to mail, how much to test, and how much to spend on the package and postage. By setting this budget you can predict the profit or loss at every point on the response curve. (We have many examples of these ROI Pro-formas that we can share with our members).There are many other tricks of the trade in controlling costs with regards to direct marketing. For example, ever wonder if the mail house dropped ALL of your mail? Be sure to request U.S. Postal Service Form 3602-R Postage Statement. This is the standard form used by mail houses when delivering mail to the post office.Another way to control costs is by getting the best deal on printing. Most customers have the mail house print their mailing material. It is best to contract with a printing company that is close to the mail house to print up your envelopes, carriers, letters, and brochures. They can then deliver them to the mail house, instead of having the mail house print this material. Since the printer specializes in printing they can provide the service at a lower cost than mail house. Your savings can be rather significant by doing it this way.

Cool Business Cards

What’s the most under-utilized of all marketing devices? Few people get this one…. Business Cards! 

Think about it. When someone is even remotely interested in your company, product or service, what is the first thing they ask for? That’s right, your business card. 

Often time, the impression a card makes on the receiver sets the stage for WHO the prospect believes you are. In fact, the prospect will many times categorize you based upon the type of business card you have. Are you a large company or small, conservative or liberal, arrow-straight or creative, high-priced or discount? It’s all on the face of the card! 

I thought I’d take a moment to share with our Business Update readers some of the things we covered at our “Attract More Business Workshop” last week. By the way, thanks to everyone who attended. We had a fabulous day working on improving our marketing skills. Everyone left with a specific action plan and I have heard from some of some participants who have already begun to reap the rewards of their new marketing initiatives. Congratulations to all. 

I have shown a few business cards below that follow the rules that we discussed in the seminar:
1. Become a bigger fish in a smaller pond – narrow your market by showing how you are more important to a smaller group of people
2. The problem is more important than the solution – customers are not interested in us they are more concerned about their problems
3. People don’t like to read so let design and color speak – Design the ad first using a single, compelling image
4. Don’t become a better solution become the only solution – Use powerful headline that expresses you exclusivity
This is a card developed by my associate Tom Vickers. Tom is an A and R man (that is, he is the Artist Relations person for music acts) In fact, Tom does work for ZZ Top, Brian Auger and other Classic Rock and Rollers. They remember him because his card is “literally” a beer coaster. And we all know that rockers MUST drink!

Max Parker, owner of the Dogs of Design is a designer and he has narrowed his market so that he specifically works with industrial and automotive product manufacturers. You will not forget his card nor mistake it when he hands it to you. You see, Max’s business card is made out of metal. It has all kinds of intricate embossments on it and it gets the point across that Max knows all about industrial fabrication.

There’s nothing more pedestrian than a real estate agent’s business card. They are all the same. Typically, they have a photo of the agent smiling showing off their pearly whites. BORING!! I love Rick Wilkinson’s card. It’s all about his best friend… Jake the Irish setter. If you know anything about the market today, you know that it’s not easy finding a home let alone finding a great home. Well I kind of like the idea of Jake sniffing them out for me.

Business cards are critical in connecting with and communicating to your prospects and customers. Often times we are completely unaware of how our business cards have served us even in silence. 

We can accomplish great feats of networking with the right message on a business card. Our card can make a strong impression or relegate us to obscurity in the mind of the receiver.

If you would like to increase the effectiveness of your marketing, I am happy to tell you that you don’t have to spend a fortune on advertising or hire some self-proclaimed guru. You can do it yourself. That’s what our Attract More Business workshops and programs are all about.

In fact, I will be doing another full day workshop I Long Beach, CA in September. If you are interested let me know by registering here or emailing me at mark@markdeo.com

In addition, my Attract More Business program is now available with 9 CDs and the 150 page color manual. Check it out here.

Choosing the Right Media

I’ll never forget when I was a fledgling Marketing Manager with Walker International, a top consulting firm. It was my first major presentation to the board of directors. 

“It’s a HOPE business,” our CEO bellowed in my direction. “You HOPE someone sees your ad, you HOPE they call you and then you HOPE they buy something.” Cocky New Jersey Italian that I was (or am, I should say), I was REALLY afraid to give my presentation at that point. Here I was preparing to wax eloquent on the virtues of why our company should start advertising. A 28 year old junior executive in a billion dollar conglomerate about to take on the CEO at changing one of his long-held principles – NO TRADITIONAL ADVERTISING! Tired of reading already? Click here- LISTEN TO THIS ARTICLE. Well I lost that battle but learned a far more valuable lesson. Traditional advertising is not a viable long term marketing strategy. 

We all need to employ some kind of media to get the word out about our company. Yet selecting the most effective media can be a daunting task for most entrepreneurs. Marketing budget dollars are limited and every penny counts. Today the number of media choices through which we can market our company, products or services is staggering. It is difficult to know with any certainty which media will produce the best results. 

The Targeted Media Conundrum
It follows that the most targeted media happens to be the lowest reach media and the lowest cost media. This presents an opportunity and a challenge. The fact that the cost is low gives us the opportunity to test various different messages for a very small investment. Yet since the reach is small, that is the actual number of readers, viewers, listeners or visitors is smaller than broad media it greatly lessens the number of opportunities to create enough impressions and ostensibly enough response to pay for the media. This is the biggest challenge with targeted media.

Targeted Media Solution
So how can we create a successful targeted media campaign? While the audience is, admittedly, far smaller, they participate (read, listen, view, visit, etc) with far greater interest and intensity. On top of that the cost per impression or cost per audience member is far smaller than broad media. 

Example
Suppose you’re promoting a chain of cool new coffee shops in the LA area. You place a small three and one half inch square ad in the LA Times (actually this would be a 7 column inch ad because it is 2 columns wide by 3 ½” deep). This costs about $2,400 to run ONE TIME on any given Sunday. The good news is that you will reach 750,000 people yet your ad will be sandwiched in between a car dealer, a bank, an electronics retailer and an auto mechanic. And that’s if you’re lucky. If you’re like most, they’ll put your most powerful competitor, Starbucks or Pete’s right next to you! Now how many of those 750,000 will even NOTICE your ad let alone read it? – maybe 1%? That’s 7500 people. How many will read it? Let me be kind and say 5% – we’re down to 375 people. Now how many will visit your stores? Let’s say you’ve perfected the art of creative ad development and your ad knocks them dead with another 5% response – you have generated 18 potential visitors at a cost of $133 each. Could you EVER sell $133 worth of coffee to each of them? I don’t think so. Think my response numbers are too low? Double them. Triple them! You’re still losing your shirt. 

Find the Media that Appeals to the Sneezers
Now instead, let’s say you discover by completing your target profile that your best customers are workers from the large office complexes within a few blocks of your stores. You place ads in each of their company newsletters, on their bulletin boards and on their company intranets. All this costs you less than $600 and exposes you to 10,000 people. What’s better you’re the ONLY coffee shop and your ads have top billing. Instead of running ads for one day they run for a month or longer. 

Now because you have no visual competition, more like 20% notice your ads for 2,000 people. Because you are very close to them, the ad is relevant and has credibility and more like 30% read it for 600 people. Finally 10% take action for 60 visitors at a cost of $10 each. Starting to make sense? 

The best part though is that every visitor has a high intent to tell 2 or 3 other people about you. In all likelihood they will bring their associates. In fact they have an even higher capacity to become loyalists and make your shop their first stop before going to the office. The trick is reaching enough people at a low unit cost with a memorable, relevant and compelling message that motivates them to take action.

How to Increase Media Effectiveness

  • Find the media that most closely addresses your target audience.
  • Become the most dominant advertiser in the media.
  • Eliminate any visual or auditory competition.
  • Make a long term commitment to the media.
  • Aim to reach the sneezers.
  • Appeal to the loyalists.
  • Back into your targeted cost per customer.

Attributes of highly targeted media

  • Creates greater influence
  • Communicates with more sneezers
  • Allows you a bigger share of voice
  • Costs less than broad media
  • Lends itself to a message that educates and inspires

Just as with preparing our marketing message, the traditional approach; “using a media that sells as many people as possible on WHY we are the best choice,” simply doesn’t work. Instead we must look for media that exclusively and credibly addresses the most selective audience possible. In fact, contrary to popular belief, the smaller the audience, the better. By using highly targeted media we are able to reach the most influential prospects and to do so in a way that is valuable credible and memorable.

Cable TV Advertising

Cable and satellite TV is switching to the new digital technology. With the merger of Time Warner and AOL and the completion of new digital subscriber lines nationwide, television will never be the same.

Because of the added bandwidth, consumers will be able to interact with their TV’s like never before. Within a year, cable TV systems in major cities will be offering more than 100 channels. In two years cable systems will jump to 500 channels! What will this mean for small and home-based businesses wanting to advertise on TV? They’ll be able to do it. Advertise as much as they want, at unheard of low prices.

When asked who would be on TV next year, one media expert replied, “Everybody!” Watch for small bedroom TV studios to start popping up everywhere. People will be producing TV shows and commercials with some of the small, cheap cameras and editors now available. One man asked me if there would be a place for Multi-Level-Marketing in cable TV’s future. You bet. I would imagine that major network marketing groups will have their own channels, complete with commercials, information, and seminars for their down line folks.

Do you have a specialty that would make a good cable show? Keep your ears to the ground for cable TV changes happening in your community. TV will no longer be only for the big boys with deep pockets, but for all of us to use, profit from, and enjoy.

Some of our suggestions when it comes to television advertising:

Target your market. Make sure that you know who your viewers will be. That means researching demographics, psychographics, and viewing habits.

Hire a professional broadcast production group rather than settle for what the local cable provider deems ACCEPTABLE.

Make sure that you clearly explain the product or service that you are providing in the first 10 seconds and follow-up with applications, testimonies and a call to action.

Tell your viewer how they can buy your product or service.
Offer a guarantee

Maintain a 24 hour incoming hotline so hat people can order your product or service or at least schedule a free consultation with you if you are a professional.

If you’re interested in find out more about cable TV opportunities, contact us for examples of infomercials, and 30 second and 60 second TV commercials that have already achieved results for clients nationally.

Build Your Reputation

One of the most important assets a company has is its reputation. A firm with an above average reputation can achieve and sustain an above average return on assets…

A good reputation pays off in a number of ways. It can:

Add to the psychological value of products and services in terms of customer trust – when it is difficult to quantify the quality of a service, consumers rate the company with a good reputation higher than those with a poor reputation.
Increase employee job satisfaction – good company reputations have the knock-on effect of increasing the degree of employee job satisfaction.
Provide access to better quality employees when recruiting – after all, most people would rather work for a respected company than one with a shoddy reputation.
Support new product introductions by reducing the risk perceived in the eyes of customers.
Act as a powerful signal to your competitors. For example, companies gain a reputation by how they react to the actions of competitors.
Provide access to the best professional service providers – to boost their own reputations, the best retailers seek to stock the products of the best manufacturers.
Allow a second chance following a crisis. For example, thanks to its reputation, the market share of Arnott’s Biscuits bounced back despite the product tampering crisis earlier this year.

Poor reputations on the other hand can be dangerous to business health:
Many bosses claim that bank managers don’t like their company and overestimate its commercial risk. A lackluster reputation is often the cause.
Journalists tend to scrutinize companies with a poor reputation and remind readers of a history the company may prefer was forgotten even when a story is upbeat.
Customers are more anxious and price sensitive about products and services from less well-respected companies; poor (external) reputations tend to breed poor employee morale and so lead to the possibility of industrial dispute.
So there are good reasons, both operational and financial, for managers to enhance the reputations people hold of their companies.

Building blocks of image

What do we want to stand for? The answer to this question lies in three issues. The first involves analyzing what the product offers to customers and then communicating why it is unique and what it can deliver.

For example, the Swatch watch company hangs its image on providing “fashion that ticks”, the Department Education is in the business of providing “education for life” (life skills and skills for the rest of your life) and computer giant Apple focuses on making personal computers which allow people to enhance their skills, captured in the famous slogan “the power to be your best”.

Being able to clearly and succinctly distill the essence of your offer to customers is important. However, it is equally important to state exactly what it is you offer to employees – the second issue. Employees, like customers, listen to WII-FM radio – “what’s in it for me?”. Your organization’s formal policies (performance appraisal scheme, pay levels, work practices), organizational culture (informal practices, fun and work rituals) and expectations (rewards for past behavior, vision statement) combine to form the package you offer to employees.

The third part of the question of company image involves ethical contribution. US editor Daniel Gross believes “the ethical heart of business is service to others”. A good example of this is US-based chain Wal-Mart discount department stores. Wal-Mart founder Sam Walton offers low paid rural Americans more choice and quality for less cost than ever before. Do customers want this? Yes. Are employees proud to provide this service? Yes. Does the community value it? Yes. Can competitors easily match it? No.

Generally, the companies with the best reputations offer the best value (benefits minus the cost) to their internal and external stakeholders – it’s that simple.

What drives corporate reputation?

There are two sets of factors which combine to create the reputation an organizations projects. But only one set is under the direct control of managers and can be considered as levers to engineer change. The other acts either as a constraint on or opportunity for achievement. The controllable factors are: vision; organizational culture; strategy; formal policies; products and services; employees; and advertising and promotion.

The uncontrollable factors are: competitors’ actions and reputations; country and industry images; and media attitudes towards your industry and organization.

Many companies have a weak foundation from which to build a good corporate reputation because there is a poor match between their vision, strategy, organizational culture and formal policies. Human resource people sum up this problem in the saying “people do what is inspected, in preference to what is expected”. For example, if your appraisal scheme for employee performance rewards cost-cutting and your vision statement applauds customer service, employees will always give cost-cutting preference, regardless of how important customer service is to a good image. And in such cases a policy rethink is inevitable.

A company’s product and its promotion are also key drivers of corporate reputation. Both customers and employees are equally interested in the value of what is offered. This is especially true for advertising, where employees are increasingly being labeled as advertising’s “second audience”.

If we focus on customers, then at least four factors drive the perception of a company’s reputation: the perceived value of the offering; customer perceptions of employees (for example, are they customer focused); what other people and the media say about the company; and whether the company is part of a respected industry, a factor which includes the reputations of its competitors. Research suggests the most important of these factors is the perceived value of your products and services.

Stamp out stupid practices

Nearly every company has some practices which needlessly upset customers and employees. Some classics include: using lawyers to talk to valued customers. For example, the application forms for both Qantas and Ansett’s frequent-flyer schemes contain some heavy-handed terms and conditions. These leave the impression that the airlines don’t trust their most valuable customers;
for the last few holiday periods, petrol companies have raised the price of a liter of petrol by up to five cents. And during any week the pump price may vary by over five cents per liter. This doesn’t instill customer confidence in the petrol companies’ pricing policies.

In the scramble to attract customers and employees, some companies offer newcomers a better deal than that received by existing, loyal employees and customers, with the obvious effect on morale. The point is that stakeholders quickly loose confidence in a company they think is either wasteful, greedy or stupid, or which they think discriminates among similar types of people, has power over them or simply doesn’t trust them. The only way to identify these detrimental practices is to periodically sound the opinion of each group of important stakeholders.

Communicating stance with internal and external stakeholders

A critical element of a corporate reputation is positioning the company to stand for something important, deliverable and unique. Most companies fail the unique part. When this happens, both customers and employees tend to focus on price. If a company’s offer is not significantly different from others, then why shouldn’t customers buy the cheapest and employees be more concerned about wages?

The advertising slogans companies use and sometimes their name are often used to communicate their positioning:

3M – “innovation”

Ford – “a better idea”

Sharp – “sharp minds, sharp products”

Charmin – “squeezably soft”

And some slogans work as well with employees as customers. For example, while Nike’s “just do it” campaign urges customers to buy the product and not be a couch potato, it promotes employees to be proactive.

Branding

“One of the most important assets any organization has is its reputation.”

What does your company stand for? What do people think of when they think of your business, product or service? What do they think of when they think of you? When people think of Apple Computers, they: “Think Different.” When they see Charmin, they think: “Squeezably Soft.” BMW is, “The Ultimate Driving Machine.” Pepsi is the “New Generation” and so on.

Entrepreneurs and small business owners can also differentiate themselves with this kind of branding strategy. In fact it is even MORE important for smaller organizations to set themselves apart. Particularly if they are competing with the BIG GUYS! Remember, your customer’s perceptions of WHO you are is all the matters to them. Who you really are is quite meaningless!

Often times your reputation is wrapped up in what advertising guru, Bill Bernbach called the “unique selling proposition.” What sets you apart from the crowd? What do you do that no one else does? For me it’s “Providing answers for your small business.”

How can I back that up?
We hold Small Biz seminars and classes in marketing for entrepreneurs and business owners.
Every Monday night I teach the Dales Carnegie Sales Advantage Class in Long Beach.
Marketingquestions.com (our web site) has over 300 pages of articles for the entrepreneur and small business owner.
I do a weekly radio show that focuses on educating small business owners.
We offer a free small business success manual that provides answers to small business challenges.
We email our “Small Biz Update” to over 1000 subscribers every month.
We provide answers to our clients and members in the form of coaching and consulting sessions
We consistently communicate our unique claim and branding message in every promotional message employed. It is in our web site, in our brochure, on our business cards and even in the conversations we have with people. I don’t know anyone that offers the same combination of services that wrap around providing “answers for small business owners.”

Now remember, this is not a Mark Deo commercial. The purpose of my yammering on about how spiffy I am (NOT!) is merely to demonstrate how YOU can develop your own branding message and unique selling proposition.

THINK….. How are you different? What is unique about your company, product or service? What do you do to support that uniqueness? How can you consistently communicate that branding strategy?

If you’re interested in learning more about reputation, branding and the unique selling proposition go to the web site at www.sbanetwork.org.