Smart Marketing

The most important by-product of your marketing plan

Is it the marketing plan itself? The task lists? The targeting section? No, it's the process. 

You see, a marketing plan generates a strategic thinking process in a small business. Faced with tough questions like "Which market segments do we serve best? " and "Why would customers choose us over our competition?", the organization must follow a planning process to arrive at answers.

If they follow this process, the answers become crystal-clear.

Dwight Eisenhower said it best:

“Plans are nothing; planning is everything.”

Dwight D. Eisenhower

What does Fleetwood Mac have to do with marketing?

For those of us who grew up in the ‘70s, Fleetwood Mac was the epitome of marketing success. This supergroup played to sold out stadiums worldwide while its mega-album, Rumours, sold over 17 million copies.

Yet, this seemingly overnight success came only after years of tinkering. Did you know the band…:

·          Was originally formed as a blues band.

·          Endured a protracted legal battle with another band that kept it from touring for over a year.

·          Went through no less than 14 personnel changes in 10 years.

And all this happened before the release of Rumours. As a marketer, expect success only after much tinkering. Seldom will your success happen with the original line-up.

Tinker your way to the top of the charts...

The secret to unforgettable positioning

As I read the business section of our daily newspaper today, my eye landed on the profile of a local home builder. The feature was sort of a Q&A with the publication asking questions like "How long have you been in business?" and "What kind of projects do you focus on?" and the firm's answers followed.

One of the last questions was "What sets you apart from other home builders?" Good, I thought to myself, let's cut to the chase. The home builder started off with a pretty good thought "We're a smaller builder so we spend lots of one-on-one time with the customer." They should have left it there.

But they continued "...and we provide excellent customer service." I grimaced to myself and and said out loud "Ohhhhhhhhhhhh, you blew it."

You see, the secret to really good positioning is focus. Boil your business down to the ONE thing you do best. Not two or three. If the company above had left it at the first part of the sentence "we spend lots of one-on-one time with the customer", then I might have remembered them.

But now, I just file them away under unfocused...like most other small business' positioning.

Self talk as a marketing tool

If you haven't read (or even just looked at the pictures) in The Hidden Messages in Water, you're in for a treat. This book could change the way you think about your marketing efforts.

In a nutshell, the book is a summary of some science experiments that a Japanese man did photographing water crystals. Sounds boring doesn't it? But wait, it gets better...

The man first photographed water crystals in normal water. They appear like crystals you would expect to see. Then, he wrapped the bottles (where the crystals grow) with different words. One bottle was wrapped with "I love you". Another with "I hate you". What is amazing is how the crystals differed from these two bottles.

The bottle that was wrapped with "I love you" produced beautiful, and perfectly formed crystals. The one wrapped with "I hate you" produced deformed, ugly crystals. He performs more experiments subjecting the bottles to various positive influences (e.g. Mozart music, having students say out loud "I love you") and negative influences (e.g. metal music, having the students tell the water "I hate you"). The same beautiful crystals vs. ugly crystals phenomenon is seen.

I guarantee you'll be amazed just looking at the pictures in this book.

Now, what does this have to do with small business marketing? It's relevant because it teaches us that our self-talk affects our marketing campaigns. Imagine the conditions you set up if you say to yourself "I love this marketing program. It's going to work great" versus "I don't think this marketing program will work at all".

I haven't tested this theory scientifically, but I've seen that positive self talk has certainly helped my marketing efforts.

Have any of you seen similar or different circumstances...?

Be 100% sure it's 95% right

Recently I had an experience with a client that I'd like all of you to avoid.

I was hired to oversee the development of a full line of marketing vehicles including a website, a brochure and a variety of other marketing materials. The process began and we made very good headway at first.

When we got the the final stages of the project though, things got bogged down. The client went through endless rewrites and copy editing...and momentum on the project stalled. It was especially frustrating because this company's market was asking for the new materials, which were still only 95% complete.

My rule of thumb is that in any marketing project you take on, you should be 100% sure that it's 95% right. Then, get it out the door.

Otherwise, you'll spend the majority of your time trying to perfect something, that really doesn't have to be perfect.

Your market holds the final answer

Bob Bly, legendary direct marketer, and I traded emails recently because of a comment I made on his blog. I said that blogs are a great way to test subject lines (or headlines) especially if you are a small business.

Think about it. We small businesses don't have test cells, A/B splits of 2000 each or anything else that elaborate. Instead we have to be satisfied with much smaller numbers, interactive feedback and a roll of the dice.

Mr. Bly and I ended our short exchange violently agreeing about one thing: Your market should always be the final arbiter.

We marketers have hunches about what the market wants. In the final analysis though, it's always up to your market to decide. 

Here's a tip for your marketing plan

Whenever you write a strategy in your marketing plan, include a rationale statement that starts with the phrase so that. This reinforces why the strategy is a top priority. Example: We will upgrade our selling materials, so that we develop a more contemporary image.

This helps also when it comes time to review your plan. Say for example, you review your marketing plan every quarter, chances are you'll have forgotten why you chose to pursue certain strategies. Your "so that" statement helps you remember.

Don't look desperate

Recently, I received the following email from a graphic designer:

"Jay-Thanks for emailing back. I look forward to meeting you. Right now my plate is empty and I'm looking for work."

The designer went on to suggest a time and place to meet, but I didn't care. By the end of his 3rd sentence, I sensed a real desperation in this person. If we ever did get together (which we didn't), I was convinced it would be an exercise where he got everything he could from me, with very little give on his part.

I didn't pursue a coffee meeting with this guy because frankly, I want to work with successful people, not desperate ones.

Business owners: understand that people search for clues in all your communications. Don't ever give them a reason to doubt you. And never look desperate.

Your most important web metrics

I'm partnering with Ed Kohler of Haystackinaneedle.com to run an online store for GamesbyJames, an retailer of board games.

When he and I boil it down, there are 3 basic metric categories we are measuring: 1) Traffic to the site  2) Conversions of the traffic once at the site  and  3) Repeat visitors/purchases. Almost all other metrics fall into one of these categories.

If you're not measuring these metrics on a weekly basis for your website, how can you know what to improve upon?

Great blog event in NY

If you like blogs (and who amongst us doesn't?), check out the just announced American Marketing Association's all-day seminar Blogs: Marketing Beyond the Website, in NY, January 21, 2005.

Originally scheduled panelists will include blogger and marketing experts Toby Bloomberg, Steve Rubel, Bill Flitter, Ben McConnell, Dana VanDen Heuvel and Dave Williams.

The price is $695 for non-AMA members, and promises to include a spirited discussion among panel members including Messrs. Bob Bly and Rick Bruner.

One website tool sure to tick off your visitors

Jakob Nielsen's Dec 6 Alertbox identifies the one technique sure to piss off your website visitors. In fact 95% of those surveyed said they'll hate you for it.

What is it? Popups. Check out his findings here http://www.useit.com/alertbox/20041206.html

Take the marketing quiz

In my book The Marketing Toolkit for Growing Businesses, I include the following quiz:

Which of these are marketing activities?

1.     Mailing a flyer.

2.     Advertising in a trade journal.

3.     Making a sales call on a prospect.

4.     Getting interviewed on a radio station.

5.     Offering a discount for a limited time.

6.     Developing pricing for a new product.

7.     Rolling out a new product.

8.     Penetrating a new market.

9.     Developing a new brochure.

10.  Researching your customers.

If you said "All of them", you’re right. All of these are familiar and quite common marketing activities.

Now, which of these are marketing activities?

1.     Answering your business line.

2.     Describing your business to someone at a party.

3.     Interviewing job candidates.

4.     Sending an email.

5.     Providing an estimate.

6.     Contacting an account about an overdue invoice.

7.     Making your voicemail system easier to navigate.

8.     Providing a referral.

9.     Thanking a supplier for a job well done.

10.  Returning phone calls.

Your answer? The correct answer is again, ALL of them. Surprised? Don’t be. These are all points of contact between your company and the market and therefore define your company to the outside world. All happen between someone inside your company and someone outside of it, and so contribute to the marketing of your company. 

How's your website's packaging?

My wife just bought a container of guacamole. The outer packaging was resplendent with its high-quality graphics and branding. The proper nutritional labels were all there and contact information (including the company's URL) were all in the right places.

But then my wife removed the tub of guac from the outer packaging, and the impression changed dramatically.

The outer tub, which would sit in our refrigerator for the next 4 weeks, had NO graphics whatsoever. Zilch. No brand name. No logo. Not even contact information or rudimentary nutritional labelling. Not a stitch of printing. So I ask you, when it comes time for us to buy this product again, how are we supposed to remember what it is?

Let this be a lesson for your website. Put your contact information at the bottom of EVERY page on your site. That way, when one of your site's pages gets circulated (either online or offline) by a friend of a friend, the person whose lap it ends up in will know exactly whose site this comes from and how to get in touch with you.

Even websites have packaging.

3 Reasons your marketing sucks

When I'm at an event and explain that I help companies improve their marketing focus, I often hear "We could use you because our marketing sucks."

If you say this about your marketing, there are 3 reasons this is happening:

1) Your marketing isn't repetitive - you may have the most compelling marketing piece, but if buyers don't see it enough they'll forget who you are.

2) Your marketing doesn't promise an ultimate payoff - I've heard salespeople drone on about what they do, what skills they have, or what awards they've won. The buyer doesn't care. They only care about their problems and how you can solve them. 

3) Your marketing lacks variety - If I meet you once and then call you every week for the next 3 months, how do you feel? Pissed, I'll bet. But what if I meet you today, follow up with a call next week, invite you to a seminar of mine the following week, pass along an article I wrote the next week, email you with a link to my website www.emergemarketing.com the following week, now....what is happening? I'm showing you my company from a variety of vantage points.

And not boring you.

How much should you spend on marketing?

In my book The Marketing Toolkit for Growing Businesses I tackle this question head on. That's because I get asked this question by most of my small business clients.

The answer to the question depends on these factors:

Your industry. Some industries invest more on marketing than others (software and video games come to mind). Learn what companies in your industry are spending on their marketing. Consult industry publications, trade associations, and contacts you have in the industry to root out more details.

Your competitors’ spending. This information is harder to come by but, it can still be found. Conversations with those who used to work for competitors may yield information. Also, official company documents, such as annual reports, might produce some data. Other sources of potential information might include industry surveys or speeches given by company representatives.

What development stage your company is in. If your company is just starting out, expect to spend a higher percentage of gross revenues on marketing. That’s because you’re busy building awareness for your company and generating trial for your products and services. A more established business, with stronger industry awareness and word-of-mouth, will usually spend less on marketing.

How profitable your company is. Let’s face it, profitability is the ultimate score in the business world. And those companies with higher profit margins (e.g. many service companies) can allocate a higher percentage of funds towards marketing.

Most companies I deal with spend between 1%-10% of gross revenues on marketing. This is a large range, but it gives you a starting point. Multiply your company’s last year revenues by 1%, 5% and 10% and examine the range of numbers. Which of these can you afford? And which will help you achieve your goals? That is how much you should spend on marketing.

Good marketers order small quantities

I was on the phone yesterday with a client discussing some updates to his direct marketing campaign. When I asked him when we could get started, his answer left a pit in my stomach. He said "Not for a long time, we still have to work through the 5,000 postcards we bought 2 years ago".

Some business owners, in their enthusiasm for launching a new marketing campaign, get sold a bill of goods by their printer. This printer says "Why order 1,500 at $0.30 per piece, when you can order 5,000 at $.15 per piece? Don't you want to get a price break?"

Here are two good reasons you shouldn't fall for this: 1) Your total price just increased 66% (even though its a lower price/piece, you're still buying 3,500 more)  and  2) You lose a great deal of flexibility for future efforts.

Say for example, you print up 5,000 new pieces and then 6 months later you want to change some copy. Now you either have to find a way to get rid of your inventory ("getting rid of stuff" is never a good marketing strategy) or just toss it. Either way, you lose.

When launching a new campaign, keep your order quantities low to start. You can always re-order.