Smart Marketing

Should you hire a business development manager to do your own marketing?

Many free lancers, consultants and professional service providers wonder out loud to me if it would be worth the investment to "hire someone to do my marketing for me". Realizing they are experts in something other than marketing, they quite correctly look around for someone to outsource this function to. I have a very definite opinion about whether or not you should do this if you're a consultant. And the answer is......ABSOLUTELY NOT.

You should hire a marketing consultant to help you arrive at a plan that covers your goals, your target market, your company's positioning, your marketing strategies and tactics and your budget (all the things I help clients with, by the way), but when it comes time to talk to prospects, meet with them,  establish your expertise, and close them into clients, don't outsource this function.

The reasons I believe you should handle these key tasks personally are:

• You are the chief chemistry officer for your services - Clients want to know they have a certain  chemistry with you before they hire you. The only way for them to know this is to hear you in action over the telephone or see you in action in a sales call.
• You know your processes better than any business development person - Many times a client wants to know what your consulting process is. What steps will you take to solve my problem? they ask. You, and you alone, know all the steps in the process...and any nuances to this process. A business development person can show the prospect a flowchart of your processes, but you are the only one who can bring it alive.
• Being present creates credibility - When you discuss your qualifications, in first person terms, in front of a prospect, you build a personal credibility with that person. The prospect hears you tell him/her about your qualifications and subconsciously transfers that credibility to you personally as they hear you tell it personally. When a business development person describes your qualifications to the prospect, the prospect is left with an invisible "distance" between themselves and you.

Maybe I'm all wet here, but in my opinion the very best way to personally market a personal service business is....personally.

The Eagles and Wal-Mart; Exclusive distribution as a marketing strategy

The rock group The Eagles and Wal-Mart have come together to form a partnership that will likely affect marketing for years to come. On October 24, these two announced a long-term strategic deal for exclusive audio and video releases by the band. The group's new album, Long Road Out Of Eden, will be sold exclusively through Wal-Mart and Sam’s Club retail stores in North America as well as online at www.walmart.com .

Now many of you have heard me talk about how more marketers are using limited availability in their marketing efforts. But I am starting to see a new trend towards exclusive distribution arrangements that marketers should take note of.

The exclusive distribution deal between The Eagles and Wal-Mart is not a first. Jessica Simpson formed an exclusive distribution arrangement with 7-11, Ray Charles and Starbucks formed an exclusive arrangement recently and Garth Brooks also formed an exclusive arrangement with Wal-Mart, making the retailer and its Sam's Clubs and walmart.com outlets the only places where his music will be commercially available.

These kinds of exclusive distribution deals are a 180 degree shift from the marketing model of old that sought to get a product into every distribution channel possible. Now it seems, there’s more demand in creating an exclusive distribution deal. It creates buzz, and focus; two important elements for the success of any marketing campaign.

Now I realize that The Eagles, Ray Charles and even the Rolling Stones (who have released an exclusive box set DVD through Best Buy retail stores) are dealing from a position of strength. They have years and years of building their own brands and awareness behind them, so they carry more sway in their negotiations with retail chains.

But more and more I’m becoming convinced that the old marketing model of “all forms of distribution at any cost” is beginning to tire. There are just too many products, too many channels….too many of everything. The clutter is enormous and odious on consumers.

Could it be that selecting an exclusive distribution arrangement helps a brand build a more significant demand?

Why are repeat customers so important?

There are many reasons why repeat customers play a pivotal role in your small business' marketing. Here are 3 of the best reasons:

Influencing circles of influence

Recent estimates put an average person’s circle of influence at between 50 and 300 people. That means that a repeat customer has the ability to influence up to 300 people with his/her feedback about your company. That’s why it’s so important to nurture the relationship.

Imagine the time it would take a sales rep to generate 300 potential prospects. Yet by connecting with a repeat customer, and finding ways for them to communicate to their circle of influence about your company, you’ve just expanded your sales force, without incurring additional overhead.

Repeat customers’ praise can be amplified

Testimonials. Case studies. Serving as a reference. These are all ways that a repeat customer’s influence can be magnified. Asking a repeat customer to be the focus of one of these signals to them that you really value your relationship with them. Smart marketers find ways to package their repeat customers’ satisfaction and funnel it back into the company’s marketing efforts.

Repeat customers’ offer invaluable feedback

Any good marketing company develops a feedback loop with its market. What better way to do this than by turning to your repeat customers for feedback?

Because of the special relationship these repeat customers have with your company, they are far more likely to offer your company unvarnished feedback when it needs it most. For example, if your company is considering launching a new service, why not offer an advance preview of this service to your repeats? That way you'll get unvarnished feedback from them, they'll feel a certain exclusiveness about being approached before anyone else, and some of them may be interested in  purchasing this service. 

 

Radiohead's marketing move is a hint of things to come

Radiohead is an English rock band that's been around since 1986. But more important to me, it's a rock band that has just altered the marketing landscape. That's because tomorrow, the band will make its newest album In Rainbows available for whatever price the consumer wants to pay.

That's right, the band is selling its album only on its website and after loading the album into your shopping cart, it is up to you to decide how much you want to pay for it.  If you want it for free, so be it. If you want to pay just a quarter for each song, you can.

Not only is this a bold marketing move, but it's the way more and more pricing is being handled. I even know of a consultant who conducts weekend training sessions and then "passes the hat" and asks participants to pay what they think the session was worth. In my email newsletter Marketing Tips & Tools I cover a variety of pricing strategies, but now I guess I'll need to cover this one.

So what would you do? Pay full boat? Pay nothing?

Halo 3 Marketing is Supreme

Halo 3's creative use of limited availability is a master stroke in today's over-stimulated marketing world. Let me explain how Microsoft's Halo 3 marketing campaign completely impacted my 13 year old son's life, and made him a fan of Halo 3's for life.

Several weeks ago, he found out that he could only obtain a copy of the exciting new video game by preordering it. This meant he needed to head down to his local video game store and, for $5, reserve his own copy of Halo 3 when it came out 9/25/07. He was quite excited knowing that he had gone through the process that 80% of his friends hadn't.

Then, yesterday, on the launch date of Halo...he could barely concentrate. School dragged on and all he could think about, and talk about with his friends, was getting his copy of Halo 3 after school. He had worked himself and his posse into a feverish pitch.

After school, I drove him back to the store and when we entered the store the lines were 7-10 people deep and there was excitement in the air. We waited our 15 minutes in line, and then finally, he had his copy. On the way home, we saw some of his friends, and he bragged to them that indeed, he had it!

Long story short, he's been playing it since he brought it home and it's all he and his friends ever talk about. Man, does Microsoft know how to create a buzz around a product or what? Seriously, would my son be even close to this level of excitement if the product had just been launched to the mass market?

I'll be talking about this more in my next issue of Marketing Tips and Tools  but for now, let's leave it at this: One way to generate demand for your product or service, is to make it appear more scarce than it really is.  Just like Microsoft's Halo did.

Small business marketing plan tip #2

Most small business owners, when writing a marketing plan for their small business, seem to trip up on their elevator speech. That's the small audio commercial you tell others right after they ask you "What do you do for a living?"

Basically, your elevator speech needs to 1) start with a hook (to grab a listener's attention)  2) follow with a strong specialization statement ("I specialize in...") and finish with a benefits statement (that clearly communicates how your company makes people's  lives easier).

Being face-to-face with a potential buyer is a defining moment for your company. The buyer listens intently to see if you have something they need, and almost as importantly, they listen to see if you can communicate it effectively.

One of the best resources for developing your elevator speech on the market today is Robert Middleton's InfoGuru Manual. In it, he walks you through, step-by-step, exactly how to craft an  elevator spech (he calls it an Audio Logo) for your company. The manual also covers many other topics (generating referrals, web site promotion, email marketing, giving speeches, writing articles, etc) that are easy to follow. But, I am specifically drawn to  Robert's chapter on Audio Logos, because so few marketing resources out there cover it.

If you're a service professional that's serious about growing your business, take a look at Robert Middleton's InfoGuru Manual today.

Small Business Marketing Plan

As a small business marketing consultant who specializes in developing small business marketing plans, I see the need for two conditions to be in place for success. First, your company’s leadership must be 100% committed to the effort. Without this commitment, demonstrated daily, the marketing effort will stall.

Second, your company’s marketing also needs a designated driver—someone who is tasked with executing the marketing plan and hitting deadlines. In larger companies this is a marketing manager; in smaller ones it could be a sales assistant, an administrative assistant, or even the president’s secretary. Without these two things in place, your small business marketing plan will be doomed from the start. But with them in place, your small business marketing effort will succeed.

If you want to learn more about how to develop a small business marketing plan, my book The Marketing Toolkit for Growing Businesses might help.

Internal marketing tip - Never tire of stating your marketing objectives

I just lunched with an old friend of mine who I worked with in General Mills'  marketing department. As we told war stories back and forth, one of his stuck in my mind.

It seems that as a matter of course, during a year long stint in the Betty Crocker division, each staff meeting he attended began with everyone in the room reviewing the annual marketing objectives. They would take the first 5 minutes of each staff meeting to read each marketing objective out loud and discuss its importantce. After 5 minutes of this, they then launched into their meeting.

Then, at the end of every staff meeting, they would again review the marketing objectives.

Some might consider this overkill, but so what if it is? In my opinion, marketing's feverish pace and the distraction bombardment we are all under ("maybe these spam emails are right and I should look at refinancing my mortgage") makes this a perfectly justified practice.

Good marketing is done with the end in mind (stolen from Steven Covey), so one of the most important things a marketing group can do is keep those "ends" in mind. 

What do you think? Was this internal marketing tactic overkill?

If you want to learn more tips and tricks for implementing your marketing efforts, take a look at my book Stand Out from the Crowd. It has a whole chapter called "How to Successfully Implement any Marketing Effort".

Providing world-class customer service; The ultimate marketing tool

A member of my mastermind group owns an internet company that really excels at what it does. Recently, he came to me for advice on how best to communicate a changeover in the service he provides.

I suggested to him that he should communicate well in advance how the service was about to change. Then, after the changeover occurs, he should communicate again.

Well, my friend has gone above and beyond the call of duty. He issued several communications to his customer database about the impending change. Then, he held a question and answer session right as the switchover was about to occur. Now, a week after the changover has happened, he's hosting a teleconfernce to address any issues or questions clients might have about the switchover.

I was struck throughout this whole process how strong a marketing campaign this is. He has increased his communications with his clients (almost always a goal for businesses) and reinforced his bond of trust with them. Several clients have been more vociferous to him about these changes I'm sure, but many have chosen to remain on the sidelines, silent.

But he shouldn't take our silence as a lack of attention. We ARE paying attention; we're just watching with one eye.

I guess there are several lessons I've taken away as I watch this successful businessman conduct his affairs:

• We marketers must always find unique ways to communicate with our clients. If it takes a momentary hiccup in our service to provide us with that opportunity, so be it.
• Proactivity is the watchword for any marketer. If you want your clients to stay with you, you must be proactive in your service and communications.
• Always provide a "pressure relief valve" to your customers if your service is experiencing difficulties. Blog about it and solicit comments. Hold teleseminars and ask for feedback. Give out your email address and suggest others write in with their complaints. The fact that you offer an outlet to your clients is almost as important as the feedback you get.

In my newest book Stand Out from the Crowd; Secrets to Crafting a Winning Company Identity, I wrote a chapter on this subject entitled "The Keys to Delivering World Class Service" because it's an often overlooked part of a company's identity.

What do you think? Am I right in thinking this gentleman's approach is admirable?

5 questions for Marketing Research guru Bob Kaden

I recently caught up with Bob Kaden , author of Guerilla Marketing Research. He had some great insight into the role of marketing research in a business’ marketing efforts:

 
1) What role should market research play in a business' marketing effort? 

Virtually the same role played in large businesses.  That is, determining the needs, wants, wishes and desires of customers so that you can motivate them buy more frequently from you, spend more money each time they buy and be happier about doing business with you as a result.

2) What does a small business really get when it researches its market? 

They will come to understand the best way of marketing the products they sell, the services that they should offer and the emotions that they should tap into in order to make them more money.

3) How important is setting objectives in market research? 

Without determining actionable marketing research objectives before undertaking research, 90% of what you learn will likely be information you can't use to grow your business.

 

4) How can small business leaders be better marketing researchers? 

By consistently using focus groups and surveys to determine buyer attitudes, and then acting on the results.   Also, business leaders can also realize that marketing research is as important to growing a business as is inspiration.

 

5) Who are the Top 3 Greatest Marketers of all Time? 

Leonard Lavin of Alberto Culver, Howard Schultz of Starbucks and Steve Jobs of Apple.  They all understand the art of catering to the wants, wishes and desires of consumers and then tapping into the emotions that turn them into loyal customers.

 

For more Top Marketers of All Time choices, visit my blog entry Who is the Greatest Marketer of All Time?

 

For more information check out these resources:

 

Bob Kaden’s book Guerilla Marketing Research

Either of my two books The Marketing Toolkit for Growing Businesses

or Stand Out from the Crowd: Secrets to Crafting a Winning Company Identity