Archives for posts with tag: advertising

Just for a minute, pretend that you are getting ready for your a blind date. If your friend is to be believed, then the person you’re meeting is a perfect fit for you. Smart, attractive, funny, stable, healthy, and ready for a commitment. You’re excited and of course, you want to make the best impression.

Invariably you find yourself rethinking your wardrobe and trying to decide whether to go with your best colors, or decide which combination of shirt and pants will portray you as both fun yet dependable. You stand in front of the mirror and work to make yourself presentable. You style your hair, maybe put on a bit of cologne, shave … everything you can think of to make that good first impression.

But you know that looks aren’t everything so you rehearse your date. You stand in front of the mirror and practice your laugh, your ‘interested’ look, your serious face … heck, you probably even brainstorm topics of conversation and respond to imagined questions with very thoughtful and sincere answers. You try to think up ideas that will present you as both an eloquent and informed person, but also an effective and attentive listener. After all, this person you’re meeting could be ‘the one’ and you want to make sure that you’re presenting yourself in the best possible way.

In many ways, advertising is just like going on a date. As a company, your marketing is trying to woo a customer; it’s trying to attract people and get them to feel like your service is exactly what they need to solve their problem or make them happy. The best way to do this is to use your marketing to help potential customers get a taste of what it’d be like to do business with you. Your marketing should generate the same reaction to the viewer as they would experience when they walk through your doors for the first time.

You need to let your personality show.

In a previous blog titled ‘It’s not me, it’s you‘ I discussed the importance of designing your marketing campaign from the viewpoint of the customer. After all, it’s not enough that your marketing says what you want it to say. That won’t resonate with the customer. Your marketing needs to say what the client wants to hear. If you can address their needs and make them feel good about choosing you to satisfy their desires, your marketing stands a far greater chance of success.

But your marketing also needs to reflect the essence and the experience of doing business with you. It needs to sell the customer not only on the informational level, but also on the aesthetic level. Your advertising should represent exactly what it feels like to do business with you.

If you are a family restaurant, then your advertising should convey a fun, comforting kid-friendly environment. If your marketing reflects a classy, upscale or romantic feel, there’s a disconnect between who you are and who you’re representing yourself to be.

If you’re a lawyer your advertising needs to command a level of responsibility and trust. But if it looks as if it were created on a typewriter and has a picture of you in a wrinkled shirt that looks as if it was taken off a cell phone, it won’t matter if you are the best attorney in the state, people are going to see that you didn’t put the effort into your advertising and infer that you’re likely not the person who will give 100% toward their case.

If you are a car dealer, you’re not just selling cars and the feeling of freedom to your customers but you are also battling the stigma that car salesmen are dishonest and/or that the cars they sell aren’t always reliable. Your advertising should reflect reliability and honesty. However, if your marketing is distracting or confusing and is replete with disclaimers, confusing jargon or features images of vehicles that look well past their prime, it won’t matterthat you are honest and all your cars are reliable — your advertising is feeding into the stereotypical car dealer cliché.

The old saying that ‘you never get a second chance to make a first impression’ is very important when it comes to advertising. You cannot consider any marketing effort to be an afterthought, or something that is just ‘thrown together’ at the last minute. If your ad or flier or commercial or brochure doesn’t truly represent and convey the experience of doing business with you,  you are sending an imprecise and conflicting message to your customers.

Your marketing should be a faithful extension of your business identity. Advertising is a very deliberate and thoughtful process designed to attract, communicate and persuade complete strangers that you have a solution to their needs. Reading or viewing your advertising piece should convey the same feelings and instill the same confidence as if you personally were sitting down and having a one-on-one conversation with your client. In many ways, advertising is just like getting ready for that first date. You want to like them, and you want them to like you so it’s critically important that you put your best foot forward.

Whether it is you or your agency who designs your marketing, make sure that everything is developed in such a way as to allow the personality — not just the offerings — of you business show. Customers need to feel what its like to do business with you and your marketing is their first contact point with you. If you can’t be everywhere at once (and who can?), then your marketing is inevitably going to be that initial point of contact and it needs to precisely convey exactly what the potential customer will experience once they pick up that phone or walk through that door.

Can you say that your marketing does that for you? Maybe you need to take it out on a date … just to be sure.

I am a huge fan of marketing. I firmly believe that in the business world, effective marketing can cure most ills and boost even the most sagging of bottom lines. Advertising has the ability to directly influence consumer behavior, contribute to pop culture and even provide quality entertainment. Marketers are often the most creative and inventive group of individuals in the business world, yet the thing I find funniest is just how often we fall into the trap of repeating the same ideas over and over again.

With that in mind, here’s a look into several of the more popular advertising clichés and some background information as to why they work and how you can use them to improve your business.

PHRASE: Think outside the box
WHAT IT MEANS: Be creative. Do things different than anyone else.

This is probably the single-most overused phrase in marketing today yet the reason it is so frequently cited is that, despite the tired, worn out phrasing, it remains the single most important aspect to marketing. The very reason marketing and advertising exist is to help a company promote itself and to distance itself from the competition. It’s ironic however, that the phrase itself has become clichéd, cringe-inducing mantra for marketing professionals everywhere; a once proud creative concept discarded to the scrap heap of other tired slogans and jingles.

Despite its overuse ‘thinking outside the box’ is a rallying cry to businesses and agencies everywhere; a challenge to be inventive, to be unique, to give a reason for potential customers to remember you and forget everyone else. Being creative and on-point is the single hardest task for a marketing professional and the most critical. It is also the single most important concept for businesses to grasp with regards to advertising, and the hardest one to embrace.

I’ve been in countless meetings with small business owners who sit down and excitedly state that they’re eager to do something different; to push the limits of what has been done before in the local market;  to go head-to-head with the ‘big boys’; to be creative or funny or even controversial. But for some reason, it never seems to happen. Daring, bold or adventurous campaigns are developed only to have the same result — the business owners love the concept, tout just how well it captures the attitude and message they wish to portray, and then they get cold feet and opt for a rehash of the same boring, bland and uninspired marketing they’ve run for years.

Truth is, the only box that exists in marketing is the one we create for ourselves. You can’t be afraid to stand out and be different. Doing the same marketing that the competition employs, or advocating a safe, conservative approach only succeeds in preventing you from realizing your potential. Businesses and marketers have to believe that the only limitations they face are the ones they impose upon themselves. There is no box.

PHRASE: To make money, you have to spend money.
WHAT IT MEANS: In order to grow, you have to invest in yourself.

It’s in a company’s best interest to market itself yet many businesses, particularly small businesses, have no formalized marketing budget. If times are good and money is plentiful, then that’s when the marketing is done … at least, that’s what I’ve seen to be the common approach.

I’m not advocating extraordinary marketing budgets which have no chance of generating a return. I promote responsible, realistic spending in the range of 5-7% of the company’s annual revenue. This amount, in combination with a sound marketing strategy, should be more than sufficient to properly reach new customers. The old adage that you have to spend money to make money is very true — even in a down economy.  You can be very effective with your advertising — even on a shoestring budget — as long as you are willing to develop a sound marketing plan and stick to it.

Most companies I work with (usually small businesses) lack a predefined marketing budget and no formalized marketing strategy; they usually market only when times are good or when they have the money, which is a counter-intuitive approach to effective marketing.  Yes, you market when times are good, but you also market when times are bad.  It’s been shown that companies that market during recessions and bad times actually make MORE money than their competition and emerge from the hardship with increased market share and more business than they had before the bad times.  I’ve referenced this particular research article before, but it’s worth including again: READ: A Critical and Synthesis of Research on Advertising in a Recession by Gerald and Kethan Tellis

Look at it this way … If you don’t advertise, you are essentially paying your customers to go to your competition.

Not advertising your company is never a good idea. If your bottom line dips, make budget cuts where you can and evaluate where and how you’re spending your money. Maybe there are inefficiencies elsewhere in your company or economies to be gained by evaluating new procedures, but avoid the knee-jerk response of cutting or eliminating your marketing budget. As long as you are advertising effectively and making sound marketing decisions, your advertising is NOT the cause of your financial downturn, so why cut it? Because it’s the easiest cut? It may be, but it is also the most detrimental cut you can make toward turning around your bottom line performance.

PHRASE: Pick one media and do it well
WHAT IT MEANS: Don’t dabble in many different advertising sources, just find one thing that works and stick to it.

This particular cliché is, in my opinion, a very outdated and ill-suited approach to marketing in the modern age. You would be surprised how many business owners I come across who have adopted this approach to their advertising.

The issue I have is that unlike any previous point in our history, humankind is more mobile, more connected and has more diversionary options than ever before. More and more we find that every one of our customers has more and more companies vying for their attention. To reach those customers a business has to diversify and invest in marketing to where the customers are and how they want to be reached as opposed to putting all their eggs in one basket and hopes that it will reach everybody.

It’s one thing to find a media vehicle that works. If it works, why would you stop using it? But it’s another thing entirely to shun all other opportunities. Yes, by all means, invest in marketing that is proven to be successful for you, but a business should have a healthy media mix as part of their marketing plan to reach as many people in as many different ways as makes sense from a strategic and budgetary standpoint. Most businesses have a wide array of customers with different interests; different lifestyles. They may not all read the newspaper or listen to the radio. They may not all watch a particular program on TV or know how to use the Internet.

The trick to mastering a multi-media advertising mix is to do your research. Find out who your customers are and what they do for fun or how they spend their leisure or professional time. Select the best two, three or four vehicles and spread your message to the world. The more touch points you can make, the more ways you can reach a customer with a consistent marketing campaign. The more ways you can reach a customer consistently, the more likely it is that you will connect with them and deliver your message to them just at the right time when they are ready to make a decision.

PHRASE: Be first and be the biggest
WHAT IT MEANS: Be the first ad the customer sees and make it impossible for them not to notice your ad.

I hear this one a lot when it comes to newspaper and phone book advertising and I agree with it … with a fairly sizeable caveat. The idea behind this particular cliché is to help the customer get noticed. And I agree. The idea of any advertising is to help a business get noticed. Where I disagree is in the method.  Here’s why…

Newspapers
With newspapers, the prevailing wisdom is to put large, full or half page ads on every right-facing page. I had the opportunity to attend a Colorado Press Association (CPA) advertising seminar a couple years ago and it’s the widespread belief among their sales staff that the right-facing page approach is best. The interesting thing presented in this seminar was a result of a survey which showed that readers preferred left-facing pages for the advertising (because people read from left to right) and preferred smaller ads which didn’t compete with the news (the real reason they’re reading the paper).

My approach for advertising is in frequency. Don’t by the big one-off full page, full color ad. In general it’s a huge waste of money. After all, what if the reader doesn’t read that particular section of the paper? Yes, you can request specific placement (hopefully as a result of research which has shown you that your customers tend to prefer one section over another), but that guarantee also typically comes with a premium price — usually an additional 10-15% of the cost of the ad. My approach calls for multiple smaller ads scattered throughout the same paper. You can still spend the same amount of money by this approach (or in some cases save money), but you will hit the reader more often with your advertising message.

The number of touches is critical in marketing. It usually takes somewhere between 5-8 impressions before the customer even realizes that they’ve seen your ad before. If you can spend the same amount money, and get all those impressions in one paper as opposed to running the same ad 8 times at 8 times the cost to achieve the same results, which approach makes more sense?

Phone book
Let me just say up front that advertising in the phone book is typically a waste of your money and here’s why…

People don’t go to the phone book to choose a company to do business with. People go to the phone book (and in greatly decreasing numbers thanks to the Internet) because they already know the business they want to use – they just want to find out their phone number or address. The phone book reps will give you tons of “facts” about how often people use a particular category or that the phone book is where most customers hear about businesses. Those facts are often misleading — especially when you filter them against common sense. Put your own experience to the test when it comes to phone book advertising. How many times do you go to the phone book?

It is a giant waste of time and money to advertise in any vehicle that stays closed up and locked in a drawer or closed 362 days a year (yes, the average phone book is only used 3 times a year). You, as a business, are paying hundreds and even thousands of dollars a month to have your ad sit amid all your competition in a dark, closed space.

The competition is another good point to bring up. Why would you pay good money to be listed right alongside all your competition? Right off the bat, you’re diminishing the chances of success because A) you have no ability to deliver your message on your own terms irrespective of the other competition and B) you have no say on where or how the ad is presented within the overall layout.

Which brings us to the ‘Be first and be the biggest’ idea. The phone book reps are the biggest preachers of this approach. They know that phone books are typically best used for ‘emergency’ type services like plumbers, roof repairs, water mitigation and bail bonds. If you in a pinch and don’t know who to call, you’re going to flip to the desired section and you’re going to call the first person you come to. This is where the first and biggest approach comes in. The phone book puts all the full page, full color ads for each section up front. The smaller ads and then black and white ads are arranged in decreasing order the farther back in the section you go. So if you can’t secure the first page of the section and can’t afford to spend the thousands of dollars a month required to secure this page, the phone book is essentially telling you that they can’t deliver performance on your advertising.

Unless you fall into the above described ‘emergency’ categories, my advice is to put your money into other advertising media. Build up your company’s brand awareness in the public eye and position yourself as THE business to call. Then go with the free listing in the white pages to address those few instances where your potential customer just needs to look up your address or number.

In closing…
‘Thinking outside the box’ may have started as being a way to describe the abstract concept of originality and creativity.  If you want to achieve true enlightenment in marketing, you must first realize that there is no box to begin with. You can choose to do your research and identify the best means to address the needs of your marketing and promotion as applies to your situation. Don’t blindly follow trends. Learn from them and adapt. Be strategic in your thinking and interpretation of available information and make informed decisions. Most importantly, be consistently different. When you choose a marketing path, dedicate yourself to that path. Familiarity and awareness come from repetition and have designed marketing that addresses the needs of the customer, you’ll find that the needs of your business are met and your advertising grows in strength the longer it is consistently reinforced to the public.

The only box that exists in marketing is the one in which you place yourself.

YOUR TURN:
What do you think are the most overused cliches, slogans and ideas in advertising? Click here to sound off on it and other topics on our Facebook discussion page!

Foreword: A friend sent me this article this morning and, whether you love Apple products or hate ‘em (I fall into the latter category), the marketing principles and ideas in this column are sound, effective and serve as a good starting point for anyone who does marketing for a living. Enjoy.

The CEO of Apple employs powerful marketing ideas that any company can use to tell its brand story.

APPLE CEO STEVE JOBS is considered one of the greatest marketers in corporate history. For more than three decades, he has delivered legendary keynote presentations, raised product launches to an art form and successfully communicated the benefits of Apple products to millions of customers. No matter what type of business you’re in, Steve Jobs has something to teach you about telling your brand story.

1. Plan in analog. Steve Jobs may have made a name for himself in the digital world, but he prepares presentations in the old world of pen and paper. He brainstorms, sketches and draws on whiteboards. Before a new iPhone, iPod or MacBook is introduced, the Apple team decides on the exact messages (i.e., benefits) to communicate. Those messages are consistent across all marketing platforms: presentations, websites, advertisements, press releases and even the banners that are unfurled after Jobs’ keynotes.

2. Create Twitter-friendly headlines. Can you describe your product or service in 140 characters? Steve Jobs offers a headline, or description, for every product. Each headline can easily fit in a Twitter post. For example, when he introduced the MacBook Air in January 2008, he said that it is simply, “The world’s thinnest notebook.” You could visit the Apple website for more information, but if that’s all you knew, it would tell you a lot. If your product description cannot fit in a Twitter post, keep refining.

3. Introduce the antagonist. In every classic story, the hero fights the villain. The same holds true for a Steve Jobs’ presentation. In 1984, the villain was IBM or “Big Blue.” Before he introduced the famous 1984 ad to a group of Apple salespeople, he created a dramatic story around it. “IBM wants it all,” he said. Apple would be the only company to stand in its way. It was very dramatic and the crowd went nuts. Branding expert Martin Lindstrom has said that great brands and religions have something in common: the idea of vanquishing a shared enemy. Creating a villain allows the audience to rally around the hero — you, your ideas and your product.

4. Stick to the rule of three. The human brain can only absorb three or four “chunks” of information at any one time. Neuroscientists are finding that if you give your listeners too many pieces of information to retain, they won’t remember a thing. It’s uncanny, but every Steve Jobs’ presentation is divided into three parts. On September 9, 2009, when Jobs returned to the world stage after a medical leave of absence, he told the audience that he had three things to discuss: iPhone, iTunes and iPods. Jobs even has fun with the rule of three. In January 2007, he told the audience he had “three revolutionary” products to introduce — an iPod, a phone and an Internet communicator. After repeating the list several times he said, “Are you getting it? These are not three separate devices. They are one device and we are calling it iPhone!”

5. Strive for simplicity. Apple chief design architect Jonathan Ive said Apple’s products are easy to use because of the elimination of clutter. The same philosophy applies to Apple’s marketing and sales material. For example, there are 40 words on the average PowerPoint slide. It’s difficult to find 10 words in one dozen Apple slides. Most of Jobs’ slides are visuals — photographs or images. When there are words, they are astonishingly sparse. In January 2008, Jobs was delivering his Macworld keynote and began the presentation by thanking his customers for making 2007 a successful year for Apple. The slide behind Jobs simply read “Thank you.” Steve Jobs tells the Apple story. The slides complement the story.

6. Reveal a “Holy Smokes” moment. People will forget what you said and what you did, but they will never forget how you made them feel. There’s always one moment in a Steve Jobs’ presentation that is the watercooler moment, the one part of the presentation that everyone will be talking about. These show stoppers are completely scripted ahead of time. When Jobs unveiled the MacBook Air, what do people remember? They recall that he removed the computer from an interoffice envelope. It’s the one moment from Macworld 2008 that everyone who watched it — and those who read about — seem to recall. The image of a computer sliding out of an envelope was immediately unveiled in Apple ads and on the Apple website. The watercooler moment had run according to plan.

7. Sell dreams, not products. Great leaders cultivate a sense of mission among their employees and customers. Steve Jobs’ mission is to change the world, to put a “dent in the universe.” According to Jobs, “Your work is going to fill a large part of your life and the only way to do great work is to love what you do.” True evangelists are driven by a messianic zeal to create new experiences. When he launched the iPod in 2001, Jobs said, “In our own small way we’re going to make the world a better place.” Where most people see the iPod as a music player, Jobs sees it as tool to enrich people’s lives. It’s important to have great products, of course, but passion, enthusiasm and emotion will set you apart.

Carmine Gallo, author of The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience, is a presentation, media-training and communication-skills coach for the world’s most admired brands. He is an author and columnist for Businessweek.com and a popular keynote speaker and seminar leader. Gallo lives in the San Francisco Bay area and is a former vice president for a global, top-ten public relations firm. For more information, visit www.carminegallo.com.

Okay, big philosophical question time…

Does any business really need a marketing company to help them advertise?

I’ve tossed this question around in my own brain for close to a decade now. Now, in the spirit of full disclosure, a “YES” answer is truly in my own best interests as far as continuing my career.  But there’s also a strong case to be made for a business having marketing professionals at their disposal.

  • Yes, a company should hire a marketing company.
  • Yes, a marketing company can be critical to helping businesses reach new customers.
  • Yes, a marketing company can help businesses craft effective marketing methods.
  • Yes, a marketing company can take care of all the details – the printing, the production, the media buys, the negotiation, the public relations, the creative, etc. – so you can spend time focusing on running your business.
  • Yes, a marketing company can serve as guide toward maximizing your resources and getting you the best bang for your buck.
  • Yes, a marketing company has advanced research tools at their disposal to help identify emerging industry trends, consumer purchasing habits, customer demographics – all of which you can use to tailor and refine your business to meet the needs of the market.

Yes, but…

In my 15 years in this business, I’ve seen a lot of savvy, intelligent business owners who are just as capable of developing their own marketing. I’ve seen people with a knack for self-promotion and creative thinking. I’ve seen non-marketing people come up with brilliant and clever ways of pushing their message into the public arena. I’ve had to learn that sometimes the role of the marketing company is not to necessarily come up with the idea, but to help the people with the idea bring the concept into reality.

I’ve also seen even more savvy, intelligent business owners who have absolutely no idea of how to market their product or service. Yes, they know their widgets inside and out and if you get them going on a topic related to their business and they’ll talk for hours upon hours with limitless enthusiasm. But when it comes to marketing, they have trouble corralling all that excitement and all that enthusiasm into a simple, and easily understood message. On my personal blog, I’ve written about the 5 Biggest Do-it-Yourself Marketing Mistakes. In this list, I’ve identified the most commonly mistakes people make with regards to their advertising. These errors are not a result of willful intent, or the customer loudly stating “I do not want my advertising to work!”  Instead, the culprit is actually the very enthusiasm which spurred the idea for the business in the first place, and this is where a marketing company can truly help a business realize its marketing potential.

It’s a matter of perspective.

It’s a very hard thing to do for any person  – to distance oneself from his passion – and that’s really what work is, it is a passion. People simply don’t get into (and stay in) a line of work if they aren’t passionate about it, and they certainly do not start a business around something they hate to do.  A business for any owner is truly the extension of himself – he pours his heart and soul into the company, he dedicates countless hours of education, research and hand-on experience into development and customer service, he is intimately entwined with his venture in every facet – and that familiarity, that passion, can be the biggest roadblock to successfully marketing the product or service. Personally speaking, I can market any company; any service. It comes easy to me. It’s natural… EXCEPT when it comes to marketing my company or my employer. In this case, I am so passionate, so intimately involved and invested in its success that crafting a finely tuned campaign or project is like pulling teeth; I stress about the smallest detail. I obsess over the most inane nuance. I lose sleep. I stop eating. I sulk around and grumble and talk to myself in a seemingly fruitless effort to sort out and work through all the mental blocks I’ve imposed upon myself.

My greatest obstacle in marketing my own interests is removing my own interests from the equation. And I’m not alone.

Hiring a marketing company may seem like a big expense – to take a chunk of a limited marketing budget and give it to another company to provide a service you feel you can do yourself. But the single biggest benefit is not in the bulleted list I rattled off earlier, it’s that a good marketing company will be able to provide that much-needed 3rd party perspective; to provide an outsider’s view of the situation and provide meaningful suggestions and ideas designed to communicate that very passion and excitement in a manner that is easily understood by your target audience.

Over the years, I’ve developed a list of marketing and design “rules“. This list is a fun, tongue-in-cheek compilation of certain truths I’ve found during my time in this businesses. As I blog, I’ll occasionally reference these rules as a means of supporting my argument or position. You’ll likely see these pop up from time to time. In this case, I quote rule #3:

“The greatest obstacle to an effective campaign is usually the client.”

At first glance, this rule could be interpreted as a dig toward the client, but that’s not really the intent. The rule speaks to the proximity and personal investment a client has and his inability to step back and look at the marketing from the viewpoint of the customer. Too often, the client can assign importance to one particular area or service which interests the business owner personally, but would not have any benefit or generate interest on the part of the reader.  By marketing to the needs of the customer, a business will ultimately achieve its own success.

The question still remains as to whether a business truly needs a marketing company. So what’s the verdict?

I wish I had one. I wish I could tell you without a doubt that your investment in 3rd party marketing services was the right thing to do for every business. Truth is, it’s not. I do, in most instances I feel that a company could benefit from professional marketing guidance; someone to help keep your message fresh and on-point, identify new methods for advertising and locate key areas for targeting. A marketing company can free up your valuable time; time better spent on running the day-to-day business. A marketing company can serve as an advocate for your interests and negotiate better deals to stretch your marketing dollar a bit farther. They can be a helpful resource and help you achieve your goals faster and more efficiently than if you were to assume the entire burden.

If you do decide to consider a marketing company, here are ten considerations to keep in mind:

  1. Does the marketing company’s business philosophy mesh with your own?
    – Do you feel their ethics and morals are in line with the way you run your business? It’s important that both sides share compatible philosophies.
  2. Do they have experience in marketing your type of business?
    – A good general-service company should be able to handle any need whereas specialty agencies might focus on a particular industry and not be suited for every type of account.
  3. Does their creative product meet your criteria for quality, inventiveness and communication?
    – Take a look at their work product. Is it polished? Can you easily determine the messaging? It is engaging? Does all their creative look similar or can you distinguish one client from another?
  4. Do you feel as if they will work with you, or if you are working for them?
    – Do they engage you in healthy discussion or do they speak down to you? You will want an agency that offers suggestions and helps explain their decisions, and takes the time to address your concerns. You don’t want a firm that acts as the ultimate know-it-all on every topic and acts as if they know more about your company than you do (it does happen)!
  5. Can you afford their billing rates?
    – All agencies bill at different rates. Ask for generalized product costs and hourly rates.
  6. Do they have a good reputation among your business peers?
    – Ask around. Do people speak highly of the marketing firm’s strategies, people and product?
  7. Do they share your enthusiasm for your business?
    – If the company can’t get excited about landing your account, how can they convey excitement to your customers?
  8. Does the company do a good job of setting and meeting expectations?
    – Does the company explain timelines and costs to you before any project begins? Do they deliver on their promises (for both time and cost)?
  9. How responsive are they to your concerns?
    – Do they get back to you the same day, next day, next week? Do you have to continually ask for updates or are they proactive?
  10. What does your “gut” say about them?
    – Your instinct about a company will usually prove right. Do you believe they can do what they say or are they giving you a sales pitch?

If you are happy about your business, its position and rate of growth, then you probably do not need a marketing company to assist you with your advertising efforts. Obviously whatever you are doing is fine.  Do not get sucked into an ego-driven belief that having a marketing company handle your account is any measure of success. The only measure of success is your business’ performance by whatever criteria you deem important. But if your business isn’t performing at a level you would like; if customers aren’t flocking to your door; if you are unable or unwilling to devote the time to marketing your company then perhaps having an advertising company assist you is the best move you can make. Having an experienced, impartial and objective partner to help you develop and create a message that truly defines your company and appeals to your customers is an invaluable and powerful tool to have at your disposal.

In a sad way, it’s funny that the marketing budget is typically the first expense a business cuts when it faces a financial hardship. It’s funny that a company would choose to cut the very vehicle it needs to solve its problem, and that is to reach and solicit business from its customers.  I understand why a business would choose to cut marketing out from its expenses; it is an easy way to save a big chunk of money right away. But ultimately it’s a shortsighted maneuver that has much longer lasting repercussions.

Think about this: From 2000 to 2008, the population of Colorado increased 14.8% (2009, quickfacts.census.gov) which translates to roughly 79,680 new residents each year statewide. That figure just accounts for the overall growth, it does not count for the loss of residents who move to a different state or even a different community. If a company decides to stop advertising (just for one year) it not only loses out on reaching all those potential new clients, but it also loses all those existing customers who have moved elsewhere. Granted, this number reflects 79,680 across the state, so it’s not like any business instantly loses potential business with that many people. Overall, the amount of new arrivals will be far smaller and fluctuate based on the size of the community (urban area see a greater amount of new residents, rural areas fewer).  But for any business, especially a small business, how many customers can it afford to lose and fail to replace and still remain viable? Not many.

Without a marketing effort in place to attract new customers to replace the ones who have left, a business will find an ever-increasing challenging in making up lost revenue and returning to a position of financial stability.

So the question is: “How to you trim the bottom line AND position yourself for growth?”

The answer is surprisingly simple and the first step is to evaluate where you spend your marketing dollars and what kind of Return on Investment (ROI) do you receive from each effort?

Far too often I’ve found that companies don’t have any real strategy for reaching customers. Worse yet, they tend to target the wrong customers or use the wrong advertising vehicle to spread their message.  In many instances, it is very much a ‘throw it against the wall and see what sticks‘ approach. Businesses regularly allocate a certain amount of funds to marketing, but lack a detailed plan on how to utilize those resources.

Here is a list of 10 common questions to help get you market more effectively:

  1. How much money should a business allocate to marketing? The typical range varies depending upon who you talk to, but generally speaking 5-7% of total annual revenue seems to be what most experts recommend. So that means $5 to $7 of every $100 in earnings should be earmarked for next year’s marketing.
  2. Are there any fool-proof marketing methods out there? The honest answer is no. Even the best researched, best intentioned marketing campaign is an educated guess. Focus groups, market research and expert experience can help narrow the margin for error and increase the odds of success, but it all comes down to how the audience reacts to your service/offerings.
  3. Which is the best approach, branding or call-to-action advertising? It all comes down to what results you expect from your adverting. Branding advertising is designed to promote awareness – SuperBowl ads are typically branding ads and typically contain clever messaging or positioning statements. Branding ads are designed to keep your company in the public eye, but not designed to move specified amounts of product. Call-to-Action advertising advances a very specific action and benefit on the part of the client and is designed to get the cash register or phones ringing. A good call-to-action will do the following things 1) Sum up the value of the product with a tangible reader benefit; 2) Instruct the reader as to how to go about obtaining said product and 3) Instill a sense of urgency.
  4. Which advertising vehicles work best? That wholly depends on the intent of the marketing,  but each vehicle has strengths and weaknesses. What I have found is that businesses often get caught advertising because the got ‘a deal’ – a sales rep called them with a special rate on airtime, or print space. This is not a reliable approach to marketing, nor an effective use of limited marketing budgets. The goal is to pair the right message or product with the right medium. For example: Newspapers are really good a limited-time or price point offers (call-to-action). They are not good at delivering results on image or branding advertising as they don’t have a shelf-life long enough to garner repeat views; Magazines however are just the opposite. They excel at branding and are less effective with call-to-action (C2A) advertising because their shelf life is often far longer, and C2A ads tend to expire before the reader can act on the offer. The limited lifespan of newspapers works for C2A because they are most often read the same day as they’re received whereas magazines may sit around for weeks or months before they’re opened. Radio and television can be used relatively efficiently for both branding and call-to-action advertising, but production costs and achieving the frequency needed to reliably reach the masses can be very expensive. On average a person needs to see or hear a broadcast spot 7-10 times before they actually realize they’ve heard the commercial. Phone books, in my opinion are almost a total waste of advertising money. They sit up-opened for months on end (especially with the advent of the the Internet) and even when they are opened, in most instances, people are searching for a specific name (i.e. they already know what business they’re going to use) and will not be casually leafing through trying to make a buying choice based on a yellow pages ad. Websites are a good area to spend money in your advertising (your actual web site), but banner ads and pay-per-click advertising doesn’t yield a great ROI. Social media is growing and is a great tool for branding yourself as a subject matter expert, giving you and your company added weight in terms of reputation, but like pay-per-clicks and banner ads, don’t expect a significant ROI.
  5. How much time is there to attract the attention of the customer? Not much. In print, you have maybe one-half of one second to attract a reader’s attention. With television and radio, you have maybe a second or two before they switch to a different channel or hit the mute button (or fast-forward their PVR). This isn’t to say that you can’t be successful in reaching the audience with these mediums, but you have to do it the right way.
  6. What’s the right way? In my opinion, the best way is to be clever, be informative, but be brief. Get straight to the point and show that you value the time of the reader. This means you streamline your  message to only the single most important communication point – don’t clutter up the message with a ton of irrelevant facts. In short, ditch the irrelevant … lose the picture of your kids and your dog (unless they’re the ones selling me a product, I don’t want to see them); cut out all the ego statements, the company history retrospective and ditch any photos which don’t directly support A) the product or B) serve as bait to attract attention; bullet-point your copy, if someone has to read through paragraphs and paragraphs of content, they’re not going to invest their time. Help them get in, get out and then on with their lives.
  7. How much is too much to spend on any one project? That depends on your project and what kind of realistic ROI you expect. It’s not uncommon to see clients freak out over a production bill and get caught up on a single number. You don’t want to overspend on any project, but you also have to be realistic about what the results will be if you underspend. If you pay too much, you’ll never achieve a decent return. If you underspend, your effort will look cheap and that can have a significant and negative impact on your brand (public perception). It’s a balancing act and there will always be a certain level of give and take. But if you’re presented a bill for $1,000 for 500 sales brochures – but one single sale from that piece will not only cover, but exceed the total production amount – that’s a good return on your investment. If you spend $10,000 on a project and it would take hundreds or thousands of clients to cover the production costs, then it’s not a good ROI. Too often I’ve seen customers not proceed a project simply because of the initial cost, even though the realities of the ROI would indicate that only the smallest response rates (1%) would more than cover any of the production costs.
  8. How much money will my marketing bring in? That’s entirely the wrong question to ask of your marketing investment. I get this question a lot from prospective clients. As I mentioned in #2, marketing is a best-guess endeavor so specific dollar amounts don’t necessarily have relevance. The numbers can be extrapolated based on expected response rates, but I wouldn’t go so far as to say that achieving those numbers is an exact science. No, the right question and ultimate purpose for marketing is to bring people in the door. I’m going to write it once more for clarity. THE PURPOSE OF MARKETING IS TO BRING PEOPLE IN THE DOOR. It is not to move product. That is your job as a sales person. The advertising helps promote awareness and spread your messages to the masses, but once they step foot through your door, call you on the phone or land on your web page, that’s your turf and the success or failure to sell, promote or enable action rests squarely on your shoulders. If your customer service or your inventory quality isn’t up to snuff, no amount of marketing can make up for a shoddy product.
  9. Can’t I just use word-of-mouth advertising? Word-of-mouth advertising is a very powerful tool. There’s no question, but it can be used for both good and evil.  You can  network and glad-hand people until you’re blue in the face and that can help bring business to your doorstep. But how much time do you spend to win that business? Is the amount of time you spend soliciting business taking away from running your company or improving upon your product or service? What happens when the people you speak to find your service or product to be of inferior quality.  Impress a client and they’ll tell three people. Wrong a client and they’ll tell ten. Yes, word-of-mouth can be a very powerful tool, I just wouldn’t trust it as the only tool in my arsenal.
  10. An old adage in marketing is to focus on one medium and do it very well. Is that still true? Not in age of decreasing attention spans and multiple options (TV, Radio, Social Media, Video Games, Movies, Music, etc.) competing for our customer’s attention. The best approach is to have a strategic and multi-platform marketing plan in place. It doesn’t mean that you have to overspend or even increase your marketing budget (it may if your budget is unrealistically small), but it does mean that to reach the most qualified potential customers just at the moment they’re looking to act requires that you try and reach them in more than one area in their lives. They may hear your ad on radio, but it’s not until they see your ad in print or online do they realize that they’ve heard of you.

It is also very important to keep in mind that any advertising effort take time to gain traction; patience is very much a virtue. It takes time for repetition and awareness to fully seep in to the public consciousness. In my day I’ve seen far too many campaigns yanked after a week simply because the phones didn’t ring the very same day the marketing hit the street. If your marketing message is topical, if your distribution method is sound, if you are reaching the right customers, your marketing will be successful. It just takes time to get the word out. Marketing very much builds upon momentum and can grow stronger and stronger over time as long as your message is consistently reinforced.

Before you cut your marketing budget, take a long-term look at what’s really at stake. It’s not the short term success of your company, it’s the long-term ramifications that will really matter. The key to marketing effectively is to use your resources in the most optimal manner possible and to have realistic expectations as to the results. Examine what you’re currently doing and identify what is effective and what is not. If it isn’t working, trim it out of your budget. You can put that money to better use; either to help your bottom line, or to reinvest it into the marketing strategies that are generating results.

There’s a saying that moving to a new home is the best way to clean out the clutter in your life. If your bottom line isn’t what you want it to be, the answer isn’t to become homeless (i.e. eliminate marketing), it’s to streamline and cut out all the ineffective marketing and move to a new strategy that is more efficient and productive.

UPDATE – EXTRA READING:
An article from the Wall Street Journal discussing a similar topic.
A really great analysis by Gerard Tellis on the topic with data dating back to 1920 — good stuff.

Ironically enough, today marks my 15-year anniversary in the marketing business. And in celebration of this red-letter date, I’m offering up a tip on the single-most common problem with small business marketing:  Relevant benefit.

So what is relevant benefit? Simply put, it’s a message that speaks directly to and provides an resolution to a specific need of the customer.

When I say that relevant benefit is the most common problem with small business marketing, I mean that too often the business shapes their marketing message around how great the company, product or service is – the result is a very “me, me, me” message.

“Our product is revolutionary.”

“Our company has been around for 20 years.”

“Our president has umpteen years of industry experience.”

Great statements if you’re looking to make yourself feel good about what you do, but in most cases, it’s just excess noise to the potential customer. When I title this blog “It’s not me, it’s you.” that’s entirely the attitude a company must have in regards to its marketing. Advertising, when done right, is not an ego-centric proposition, it’s a value proposition. And far too often, especially with small businesses, it becomes a situation where a company spends more time telling people about how great it is in the hopes of building credibility, than it does telling customers about how much better their lives will be when they purchase the product or service in question.

The easiest way to accomplish this is to look at your product or service from the viewpoint of the customer.  Stop telling how good it is, and identify real and meaningful ways it can improve the lives of your customer. Every decision we make is based on an response to an emotional stimuli (‘will it make me happy’, ‘will it make my breath smell better’, ‘will it make me more attractive’, ‘will it make me more efficient’, etc.), and tapping into those needs is a great way to position your marketing message to have a tangible benefit to the customer.

As much as it may seem odd to say so, your marketing is less about you and more about the customer. Satisfy their needs and you’ll find that your needs will be met in return.

The purpose of marketing is to persuade people that you have the answers. So I ask you, what is a better way to get the response you seek? Is it to get on your soapbox and talk about your company, your staff and your reasons for being in business? Or is it to put yourself in your customer’s shoes and deliver your message in a way that directly communicates a real solution to their issues?

I’ll be the first to admit that all this seems like so much common sense. This isn’t a revolutionary breakthrough in marketing thought process; it’s been around for hundreds of years. But putting it into practice is often far harder than it seems. Over the years, I’ve seen thousands of small business (and some large business) marketing that fails to connect on a real level to the very people it means to reach.  If your advertising feels like it’s more about you than them, it’s probably time to step back and re-examine how you’re trying to communicate with your customers.

As you flip through the daily paper, watch television or sift through the contents of your mailbox, try to identify the marketing that attracts your attention. Then find the stuff that doesn’t. I’m sure you’ll easily point out a handful of advertisements that caught your attention; that spurred you to read further or open the envelope.  What’s that count look like? Five… ten… fifteen pieces? In fact, I would go so far as to say that it’s easier to identify the stuff you didn’t notice. All you have to do is look at your recycle pile.

Did you know that the average American is exposed to  5,000 advertising messages every day? Of that number they recognize only 52, and of that number they remember only 4. The point that I’m trying to make is that it’s difficult to get your message heard in a noisy world. These numbers only highlight how important it is to make sure that when you do get a customer’s attention, your message is instantly understood and has value to the reader –  it has to contain a relevant benefit. Stop posing credentials and start providing solutions. After all, it’s not about you, it’s about them.

So how do go about including relevant benefit in your marketing? Comment below, or hit our Facebook discussion board and let us know what you think!

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