Articles

 

THE TEN MARKETING MISTAKES MADE BY MOST BUSINESSES

 

1.         NOT TESTING

 

No one has the right to decide what the market wants...only the market does.

Test every marketing question with the prospect or customer.

Testing involves quantitatively comparing the effectiveness of:

·        Headlines

·        T.V. ads

·        Sales letters

·        Radio ads

·        Telemarketing approach/script

·        Client greeting, etc.

The purpose of testing is to gain the maximum performance from every marketing effort.

Review regularly the performance of an approach, e.g. the product, packaging, pricing, different offers made to clients, cost per sale, cost per prospect.

 

Do you test your marketing activities?

No                   Rarely                   Often                  Always

 

2.         RUNNING INSTITUTIONAL ADVERTISEMENTS

 

These normally describe how great the company is, how old, how stable.

They do not convey compelling reasons for the reader to favour your business in preference to others.  There is no case made for buying your product.  All they say is:

·        Buy from me instead of my competitor and for no other reason.

Good marketing ads on the other hand, are designed to evoke an immediate response to action, visit an enquiry, call or purchasing decision.

A good marketing ad is “salesmanship in print”, its success can be tracked and measured.

Your prospect cares only in “What’s In It For Me” (WIIFM).

If you tell him/her this, make it clear in your ad exactly what he/she can expect from you, how will he/she get it, and quantify the benefit to him/her.

 

Do you run institutional ads?

No             Rarely                    Often                Always

 

3.         MOST COMPANIES DO NOT DEFINE THEIR

            UNIQUE SELLING PROPOSITION (USP)

 

The USP is the philosophy on which you’ve built your business.  You cannot be everything to everybody.  You can be:

·        The cheapest

·        The most expensive

·        Middle of the road

·        Most up-to-date

·        No waiting

·        Only by referral

·        Only by appointment, etc.

 

What is unique about your business?

What is your USP?

 

Do you communicate your USP?

No         Rarely                 Often               Always

 

4.         MOST BUSINESSES DO NOT HAVE A BACK END

 

The “back end” is the residual value of any other products/services other than the primary one supplied by your company which your client may also buy from you or others.

Until you know your “back end”, you cannot determine the full effectiveness of your advertising.  For example:

·        You may sell $55 of hair service bi-monthly to a client, but that same client will also buy on average $25 per month of haircare products and $75 of skin care products per quarter.

 

Do you use “back end” sales opportunities?

No             Rarely               Often              Always

 

5.         MOST BUSINESSES DO NOT ADDRESS THEIR

            CUSTOMERS’ NEEDS IN THEIR ADVERTISEMENTS

 

Find out what are your customers’ “needs” by talking to them constantly.  Some of their needs may be:

·        Convenience

·        Better quality

·        Longer lasting product

·        Better looks

·        Performance - More functions

·        To save money

·        The latest

·        To save effort

Once you determined what their predominant “need” is, keep focusing your communications on the satisfaction of that particular need in your headline and letters.

 

Do you address your customers’ “needs”?

No             Rarely            Often              Always

 

6.         YOU HAVE TO SELL AND EDUCATE YOUR CUSTOMERS,

            PARTICULARLY OUT OF A BUSINESS PROBLEM.

            YOU CANNOT JUST CUT PRICES

 

The most powerful way to deal with such a problem is to educate your customers:

·        Tell the truth about your problem

·        Tell them why you are doing or why you are making a particular offer

·        Put a value on your product and educate them on the value of what they are getting

 

Do you educate your customers?

No          Rarely             Often  Always

 

7.         FAILURE TO MAKE IT EASY TO DO BUSINESS

            WITH YOUR COMPANY

 

Is it easy to obtain your service?

Are your staff friendly on the phone?

Do they know the answers?

Is it easy to contact you?

Do you inform them of all your services?

Do you follow up quickly to your clients’ satisfaction?

Are your staff trained in the customer service side of dealing with clients, not just the technical issues?

Do you educate your clients with free information that will benefit them?

Do you make it easy to do business?

No          Rarely             Often  Always

 

8.         FAILURE TO GIVE REASON WHY

 

Whenever a proposition is made to your clients, you must tell them why.

If you sell at a low price, give a reason why you are able to do so.

Similarly, if it is priced higher, explain...that it is more durable, more concentrated, will last longer and by how much - than your competitors.

If it is a limited offer, say so and again - why...why...why.

The more factual, believable, credible your arguments, the more your customers will believe you.

 

Do you give a reason why?

No          Rarely             Often  Always

 

9.         NOT STICKING TO MARKETING

            CAMPAIGNS THAT ARE STILL WORKING

 

Many companies chop and change their marketing approach too fast and do not allow the market to respond to their offers.

Also, many companies do not allow the effects of testing to bear results.

Some businesses have successful advertising approaches that work and they get tired of it (not their clients) - so they change.  Remember, you will get tired of a campaign long before your customer does.

 

Just when you are getting sick and tired of a particular campaign, is usually just when it is starting to work.

 

Instead of abandoning the ‘true and tried” ideas that work, experiment with other ideas without abandoning the original idea.

Abandon and replace them only when a new and better approach has been proven to be better.

Do you maintain successful marketing campaigns?

No              Rarely                   Often                Always

10.       FORGETTING TO FOCUS ON YOUR

            INTENDED CUSTOMERS IN YOUR ADS...

            AND ON NO ONE ELSE

 

The headline of an ad, a sales letter, a T.V. ad, a radio commercial represents 80% of the attention grabbing effect of your message.

Concentrate on addressing the needs of your intended customers in the headline so as to flag them down for further reading.

Ambiguous, humorous, too clever headlines may lose you thousands of prospects because they may not understand your headline.

Headlines can be long or even very long.  The headline may be as long as is required to narrow your message to your target audience.

Make sure that the medium you are using to advertise in matches your prospective clients.

 

Do you focus your message on your intended customers?

No             Rarely            Often            Always

 

TOTAL SCORE:

 

No             Rarely               Often               Always

 

                        2.         Market Research.

 

MARKET RESEARCH

 

Market Research should answer three basic questions.

 

1.      What customer want.

2.      What they like.

3.      What they dislike.

 

Market Research must establish:

 

1.      What is important to customers.

2.      How the client performs on those important attributes.

 

Focus groups $3 to $4, minimum $2,500, 6 to 8 participants.

 

RESEARCH METHODOLOGIES

 

There are two basic research methodologies.

 

1.      Qualitative, e.g. face, telephone, mail (surveys), observation,

intercept exit surveys.

 

2.      Quantitative, e.g. focus groups, indepth interviews.

 

Each research method has a number of pro’s and con’s.

 

1.         FACE-TO-FACE

 

Pro’s

Provides understanding, sell visual prompts, ask complex questions, seek qualified answers, enables longer interviews, is personal.

 

Con’s

Costly, slow.

 

2.         INDEPTH TELEPHONE INTERVIEWS

            (8-10 Minutes)

 

Provide high involvement and dialogue with the customer.

Useful when customers cannot be brought together.

Ensure you get a good mix of customers.

Must arrange a suitable time to talk to the customer.

Often need to provide a “reward”.

 

Pro’s

Quick, low cost, two-way, able to ask qualitative open-ended questions, distance is not a problem.

 

Con’s

Disadvantages - slow, must be random.

 

3.         MAIL SURVEYS

            (Response 30-35%) - Average 20-40%

 

Can be statistically biased.

 

Pro’s

Low cost, wide sample, less interview bias, unintrusive, anonymous.

 

Con’s

Misunderstanding may arise, need to code and analyse data, need to provide incentives to respond.

 

4.         FOCUS GROUP

            (4 groups of 6-8 participants, 1-3 hours, average 1-1½ hours)

 

Objective:         Define size and structure

 

Need:               Homogenous groups

                        Recruited by phone or personally

                        Incentives - $35 to $100 per attendee, offer dinner

 

Use:                 Venues specific and suitable for their needs

                        Average cost $3,000 per session

 

Pro’s

Quick, relatively easy, instant feedback.

 

Con’s

Small sample size, costly, limited questions, bias of the group, group dynamics may be influential.

 

5.         OTHER FORMS OF MARKET RESEARCH

 

1.      Shadow shopping/mystery shopping

2.      Video surveillance

3.      Pantry checks

4.      Point of purchase surveys

5.      Syndicated research, e.g. Australian Bureau of Statistics.  Refer to the Market Research Society.

 

OTHER RESEARCH OPTIONS

 

Do It Yourself, but have another person observe the session for objectivity.

Tape and transcript the session.

 

FACTORS TO CONSIDER WHEN UNDERTAKING

MARKET RESEARCH

 

TESTING THE QUESTIONNAIRE

 

1.      Determine what are the important issues to discuss.

2.      Work out the time the interview will take.

 

SET OBJECTIVES FOR THE RESEARCH

 

·        Determine what is important.

·        Focus on the key issues.

·        Delete superfluous questions.

 

Delay survey after the experience to gain information about the value of the experience.

Publish results - Indicate how the firm will solve the problem.

 

                        3.         Trade Shows and Exhibitions.

 

TRADE SHOWS AND EXHIBITIONS

 

THE COSTS                          VS.                  THE BENEFITS

 

Your time                                                         Market Research

Your effort                                                       Assess competition

Your investment                                                Develop contacts

Minimum $20,000                                            Gain firsthand information

 

SOME DO’S AND DON’TS

 

PRELIMINARIES

 

·        Make sure the exhibition fits your budget, timeframe and markets.

·        Determine if a local, regional or international trade show is required.

·        Use international trade show directories to identify possible exhibitions.

·        Use the “umbrella” strength of Austrade, if required.

·        Choose the right trade show.  Look at the exhibitors, attendees, visitations.

·        Visit the show beforehand.

·        Book a high profile spot - Position, position, position.  Near doors, toilets, food, intersections, on major thoroughfares.

·        Appoint an Exhibition Manager - Set budgets, obtain quotes.

·        Set objectives.

 

BEFORE THE SHOW

 

·        Obtain listing in the show guide.

·        Source leads - Use Austrade.

·        Pre-promote the show, e.g. advertise, direct mail, telemarket.

·        Pre-contact leads, send out invitations, make appointments.

·        Set up the stand beforehand.

·        Produce a needs checklist, e.g. food, coffee, leads, pens.

·        Develop a prepared “spiel” - Use open questions.

·        Have sufficient brochures, cards, price lists.

·        Prepare price lists, e.g. less 10%, less 20%, FOB, FIS, e.g. currencies US$, £, ¥, DM.

·        Prepare a lead form (see attached).

 

·        Prepare information kits - In the right languages.

·        Consider language needs, e.g. interpreters, hostesses.

·        For overseas exhibitions, use specialist freight forwarders, i.e. they will handle labelling, documentation, customs, removal, payments.

 

THE EXHIBITION BRIEF

 

·        Create impact, have height and brightness (make sure you can be seen from 30 metres).

·        Create theatre, drama, entertainment, a “show”.  Use murals, props, sound effects, smell, demonstrations.

·        Provide a reason to encourage people onto the stand.

·        Communicate a key message.

·        Provide an “offer”.

·        Use signs, e.g. agent wanted, key benefits, Unique Selling Points.

·        Use uniforms and name badges.

·        Use minimal furniture.

·        Don’t use stick-on posters.

·        Handout material at hight, medium and low cost value to specific leads.

 

ITEMS TO CONSIDER

 

Construction:                                                                                                   

Flooring:                                                                                                          

Signage:                                                                                                           

Murals:                                                                                                

Lighting:                                                                                                           

Movement:                                                                                                      

Colour:                                                                                                

Sound:                                                                                                 

Smell:                                                                                                              

Give-aways/Prizes:                                                                                          

Demonstrations:                                                                                               

Computers/Web site:                                                                           

Printed Material:                                                                                              

Primary Message:                                                                                            

Secondary Message:                                                                            

Mandatories:                                                                                                   

Staffing:                                                                                                           

Uniform:                                                                                                          

Meeting Area:                                                                                      

Storage Space:                                                                                    

Other:                                                                                                  

Other:                                                                                                  


VISITOR LEAD FORM

 

(Staple business card or complete)

 

Customer

 

Sales Person

Company:

 

1

2

3

4

5

Name:

 

Day

Dep./Title:

 

1

2

3

4

5

6

7

 

Address:

 

 

Postcode/City:

 

 

Country:

 

 

Tel:                                       Fax:

 

 

E-mail:

 

 

http://

 

 

 

Type of Business:

1.

2.

3.

4.

 

Language:

English

German

French

Spanish

Chinese

 

Company Size:

Large

Medium

Small

Unknown

$

 

Product Interests:

1.

2.

3.

4.

5.

6.

7.

8.

 

Material Provided:

1.

2.

3.

4.

5.

 

Current Supplier:

 

 

 

Level of Purchases

Large

Medium

Small

 

Level of Interest:

High

Medium

Low

 

Timeframe:

Short

Medium

Long

 

Grading:

A. Awesome

B. Basic

C. Can’t/Won’t Deal With

D. Dead

 

Actions Required:

 

 

 

Notes:

 

 

 

DURING THE SHOW

 

·        Keep the stand clean.

·        Don’t eat on the stand.

·        Take rostered breaks.

·        Get people involved on the stand - Use demonstrations.

·        Use a lead form.

·        Record and qualify leads.

·        Hold daily debriefs.

·        Advise any colleagues back home about progress.

 

AFTER THE SHOW

 

·        Forget night life.

·        Relax - Exhaustion can be a problem.

·        Write a “thank you for visiting” letter to all leads.

·        Stay on and visit strong leads (if possible).

·        Follow up leads according to grading and priority.

·        Quickly provide all requested materials, e.g. samples, specifications, prices.

·        Hold a debriefing session.

·        Remember: 80-90% of contacts and leads will become “dead”.

 

            2.         Questions and Answers

 

                        (To be advised).

 

                        Insert questions - Answers will be posted.

 

            3.         Newsletters/Memos

 

                        (To be advised and posted as completed).