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Most entrepreneurs
recognize that they need a sound marketing strategy, especially when they
are starting up a new business or looking to expand an existing one. The
challenge is figuring out where to start.
In today’s world there
are a myriad of advertising options - everything from traditional media
(e.g. radio, television, newspapers, directories) to electronic systems
(e.g. Internet, Kiosks), from unique out-of-home opportunities (e.g.
Doctor’s Offices, Bathroom stalls, Escalators and Blimps) to direct
marketing campaigns (e.g. samples, contest promotions).
TV Basics 2003-2004
http://www.tvb.ca/TVBasics.pdf
If you telephone any
advertising company directly for more information you will quickly find they
employ some of the best sales people on the planet. They are well versed in
various statistics that point to the effectiveness and cost benefits of
their advertising model.
They are also quick to
establish themselves as part of “your team” and working towards “your
success.” They offer personalized suggestions on how to maximize your
advertising investment and strive to tailor their packages to meet your
needs. As an entrepreneur is it a fantastic feeling to have someone taking
your business seriously and falling over themselves to help you. It does
wonders for your ego especially if you have just returned from a trip to the
bank! (Bankers rarely stroke the ego!)
Be careful however that
your marketing strategy is based on more than the quality of customer
service you receive. While companies offering advertising opportunities do
everything to keep you happy – after all they want your business – their
customer service alone will not generate customers for you.
Many of our clients tells
us they have spent a great deal of money on advertising only to find it has
not resulted in a single sale. Funny thing is many of these same
entrepreneurs are still convinced they got a “fantastic deal” on their
advertising package and remain loyal to their advertising media.
Some have even followed
suggestions from the advertising company to increase the duration of a
campaign or tweak the copy of an ad. They are spurred on by the mantra “You
have to spend money to make money.” And so they continue to sink more
into the bottomless pit they fondly refer to as their marketing budget,
all the while not receiving a single sale.
No matter how good the
“deal” is, it is not worth it! The most cost effective form of advertising
has nothing to do with the price charged by the advertising company. It has
everything to do the resulting sales.
Advertising should not
require a leap of faith, devotion or hope. When you are developing your
marketing strategy do not look for ways to reach your customers, rather
consider how your customers would go about reaching you. Where would they
look if they needed to find your product or service? After all, your best
market potential are those customers who have already decided to make a
purchase and are looking for a company to buy from.
The appropriate advertising
mode is different for every type of business. For example 70% of people who
make a purchase in Future Shop go to the Future Shop website to research
before buying. Clearly in this sector leveraging a web site within a
marketing strategy can be critical. However this is not always the case.
40% of customers looking for windshield repairs look to the Yellow Pages
first when they are trying to find a repair shop. This is the most common
method of finding this type of service.
Business customers have
their preferences as well. A recent study of both software developers and
corporate purchasers discovered an interesting gap in marketing strategies
and customer preferences.
Purchasers
prefer being contacted by potential vendors
through email or ads in trade publications. They hate cold calls. Yet
these customer preferences are all but ignored by software vendors. In fact
software CEOs specifically identify cold calls as the preferred method to
gain new business and customer references. (Report on Emerging Canadian
Software Companies, PricewaterhouseCoopers (May 2004))
Canadians are inundated
with advertising everyday both at home and at the office. According to a
Leger Marketing study in 2003, 73% of Canadians feel they are ALWAYS
exposed to advertising. Given this environment Canadians have become ad
savvy. Nearly two-thirds of us (61%) change the channel while watching TV
to avoid commercials (83% of teens!) (Strategic Council April 2003). Your
marketing must be considered relevant if you have any chance of your
customer paying attention.
Even more dangerous for a
company than your customers ignoring your ads is if they consider your ads
annoying! If your customers ignore your ads you’re wasting your money. But
if they are annoyed by them you are not only wasting your money but your
corporate reputation as well. Nearly half of Canadians (47.1%) have decided
not to purchase a brand because of annoying or misleading advertising. This
figure jumps to 57.4% when the often-prized market of wealthy households
(income $100K+) is considered. (Strategy Magazine Feb 9, 2004 p5)
Top three most
annoying forms of advertising
-
Telemarketing
-
Website pop-up ads
-
E-mail marketing
considered spam
Prophis Research &
Consulting
http://www.prophis.com/pr/how%20annoying%20is%20that.pdf
So how do you determine the
preferred method of contact within your market? All of the examples
identified above were found by keyword searching periodical indexes. Many
of these indexes can now be accessed through library web sites provided you
have a valid library card. Search on your company type and the words
“marketing” or “advertising”.
Also use the friendly and knowledgeable staff at
the various advertising companies you contact. However take control of the
conversation. Do not settle for the exciting stats such as 56% of users
have made a purchase after consulting the Yellow Pages or that 39% of
Canadians reported that they had started purchasing a product regularly
after having received a free sample of it. You do not want to know the
success of free samples; you want to know the success of free samples for
your type of product.
Find out what types of businesses advertise the
most successfully in the mode you are considering. If the advertising
company cannot tell you that because it is not tracked, find out what types
of businesses employ their advertising mode the most. It is unlikely the
majority of your competitors will participate in an entirely useless form of
advertising.
Top business types advertising in the Yellow
Pages
-
Lawyers
-
Dentists
-
Moving and Storage
-
Restaurants
-
Automobile Dealers — New Cars
-
Plumbing Contractors
-
Bankruptcies — Trustees
-
Roofing Contractors
-
Garages — Auto Repairing
-
Florists — Retail
Yellow Pages,
Preliminary long form prospectus, Jun 26 2003
The above list confirms our separately sourced
insight that the Yellow Pages are the top source of information on
windshield repairs (auto repairing).
Advertising companies should also be able to
provide you with detailed demographics of their audiences. Ask for any
information they have so that you can compare their audience to your target
market. Do not settle for an advertising media where your target market is
only a small fraction of a greater audience.
CARD, a directory of the major advertising
options available in Canada, also includes some audience demographics. You
can access this directory in most libraries and business resource centres.
Your competitors, and companies within your
industry (related non-competitor businesses) can also be useful sources of
information. Find out what works for them and what doesn’t. Do not
reinvent the wheel. If at all possible learn from other people’s
experiences.
For some businesses, referrals are the principle
form of marketing. It is essential you find out about this before you sink
any money into an advertising mode doomed to fail from the start. In such a
case instead of your money, spend your time! Determine the best venue or
situation to spread the word and decide who are the most influential people
to talk to. (E.g. As a monument sculptor, funeral directors are likely a
solid choice.). Try to talk to companies directly. If this is not
possible, use the power of observation to determine who advertises where.
Finally do not forget to ask your customers how
they found you. They are the best source of information on how to market.
Find out as much detail as possible on where they looked and what their
thought process was in contacting you. This will identify which media is
the most relevant to your target market’s frame of mind and expectations.
Your marketing strategy should be based on your
target market’s behaviour. Choose your advertising mode based on the best
potential sales not the greatest perceived savings.
Certainly successful
marketing involves more than selecting the most effective advertising mode
for your type of business. But without knowing where your customers are
looking, reaching them can be impossible.
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