Whether you’re doing guerrilla marketing or advertising on the radio or television, the more accurately you target your ideal customer, the better your success will be. There are two habits most business people tend to fall into.

1.         Grab all the sales you can get.

This is completely understandable and only natural for an aggressive sales person or business owner. But, what it does is distract your targeting efforts away from the customers who will ultimately be most profitable. In order to make your marketing efforts as efficient as possible, take the time to really identify your “platinum customer”. How much do they spend? What is their life-time value as a customer? What do they buy? What common thing causes them to buy? How easy are they to deal with?

Sure, grab all the sales you can get. But, if you concentrate on grabbing all the sales you can get FROM YOUR PLATINUM CUSTOMER, you will pick up sales from the rest. And, your marketing dollars will give you a better return over time.

2.         Target your primary demographic.

This is a good start, but not good enough. Demographic refers to age and gender. Consider the following audiences based upon age and gender: a 35-year old female.

1. She’s in a business suit with a briefcase and occupies a downtown office making 6-figures a year.
2. She’s single, on a bus with two kids and food stamps.
3. She’s married with three kids and she’s in a minivan full of little soccer players.
4. She has orange spiked hair, a nose ring and works at an art studio.

As you can see, all of these women are the same demographic. But, they are vastly different audiences. In order to target your customer in a meaningful way, you must know more about them than age and gender. You need to know their education level and income range. You need to know what their values are. Do they value function over form like an engineer, or form over function like an artist? How do they spend their discretionary income? What are their leisure time activities?

The more you know about your best customers, the more efficiently you will be able to find them. The more accurately you will be able to deliver a meaningful message to them. And, the more valuable you will become to them because you are providing exactly what they need.

Rob Charlton

When creating a marketing plan, the very first thing that should be done is to write a situation analysis. It’s easy for business owners to gloss over this step because they are so deeply involved in their business it doesn’t occur to them that there is anything to learn by writing it down. The fact is, however, this step is often the most important element of your marketing plan because it allows you to reveal and prioritize solutions to specific challenges.

Here is a starting point of  20 questions you should be answering. Some of these may seem simple and obvious. But, seeing the answers written down in context with other information provides clarity that can reveal relationships you haven’t noticed before. Likewise, as simple as these look, you’ll be surprised at how difficult it is to answer some of them.

1. How long have you been in business?   
2. What does your annual sales curve look like and how has it been trending over the past three or four years?
3. How many competitors do you have? (list them)
4. How big is your business compared to theirs?
5. What are their hours? What are yours?
6. How do your competitors attempt to differentiate themselves? What is their primary image? (quality, price, exclusive lines, service, etc.)
7. Are they fulfilling their claims?  
8. What unique benefit do you provide that competitors don’t?
9. Where is your business located in relationship to customers and competitors? 
10. What does the customer landscape look like? (growing, diminishing, why?)
11. Describe your best customer.
12. What does the broad cross-section of your customers look like? (demographic, psychographic, social, income, geographic)
13. Are there enough customers to go around? 
14. What have you been doing to market yourself? 
15. How has it been working? (quantify as much as possible)
16. What are your competitors doing to market themselves? 
17. How much are your competitors spending on advertising annually?
18. How are they presenting their strengths?
19. Does your business have a weakness or bad public perception in any area that must be overcome? (ie: poor quality or service from previous owner, old facility, etc.)
20. How has your industry changed over the past few years, and how is it expected to change in the future?

All of the 20 questions listed above may not apply to your particular business. But, for those that do, be sure to explore the answers thoroughly. Some of the questions may at first sound simple, but when you really get into it, can be quite complex. The more detailed and honest you are in defining exactly where you stand in terms of competition, market size, industry trends, past marketing results, and anything else you can learn, the better equipped you will be to determine your strategy.  

Rob Charlton

 If you own a retail business that relies upon customers coming to your store, one of the most fundamental things you need to know is where your customers are coming from. Many business collect zip codes, but that’s not detailed enough. You need to identify the neighborhoods and business districts they are coming from. Do that, and you can target your advertising and marketing with much greater efficiency.

The Dot Study is a simple and inexpensive marketing research tool you can use to gather this information.

Go to your nearest map store and buy two fairly good sized maps of the area around your store. The maps should be big enough so they include the areas around your store outside of where you think your customers are coming from.

Mount each map on a piece of foam core or some other rigid backing. Mark one AM and one PM and then switch from the AM to the PM map at the same time (of your choosing) every day. The reason for this is to distinguish your source of sales during the day from those during the evening. Often, people will shop from work or some other place during the day. But, will shop from home in the evening. This is important to know, especially if you have a business such as a restaurant where you need to target lunch versus dinner messages. 

Instruct your sales staff to ask each person they wait on where their shopping trip originated from. In the evening it is a little more important to establish that the originating point is their home. They don’t have to give you an address or anything specific. All they have to do is point to an area on the map. Your staff will then place a colored dot on the map with a felt pen where the customer has indicated.

It is important to do this consistently and long enough to get a distinct visual representation of where the dots begin forming clusters. After a week or two, you will begin to see patterns emerging that will provide a great tool for future marketing.

How would you change your marketing if you could see on a map exactly where your customers were coming from?

Rob Charlton

International advertising isn’t something we get to do very often. So, when we were given the job of placing an ad in an Israeli newspaper by Figaro’s Italian Pizza, we were anxious to do it. We had never done business in Israel before and we love doing something new. And really, how hard could this be? Well, what  looked like a simple enough task turned out to be quite a challenging experience.

It started out OK. A couple hours on the Internet was all it took to track down a short list of newspapers that looked like what we needed. And, with just a little more research we narrowed it down to the correct publication.

So far, so good.

Our next step was to contact the advertising department of the paper to get rates, deadlines, mechanical specs and payment procedures. That’s when the first little challenge became evident, and it wasn’t a language barrier as we expected. As it turns out, most speak English quite well over there. It was the time difference. Every e-mail, no matter how insignificant the subject, takes an entire day to get a response. That’s because their work day begins about 10:00 pm our time, and ends about 6:00 am. While I’m e-mailing, they’re sleeping, and vice versa. On a number of occasions I got up early to call them on the phone in order to speed things up. But, at this newspaper they don’t answer their phones. They let their phones collect messages that they listen to at their leisure. Add to that, my first three e-mails were not answered. My only hint that they were going through was that I was not getting a bounce-back notice. But, three unanswered e-mails equals three days of time.

For fear of looking totally incompetent to my client, I started sending several e-mails per day, so if there was anyone on the other end, they could not miss my messages. In fact, they would have to respond or continue to be annoyed by me forever. Thankfully, I finally received a polite e-mail along with an apology for not responding sooner.

Things were starting to look up.

After another few days of back-and-forth messaging, I was able to size the ad and identify a budget. I had asked how they wanted to handle payment and was told that the ad had to be paid three days prior to publication. Payment could be either by bank transfer or credit card. No surprises here.

I spoke to my banker and was told that the most practical way to handle this transaction was to use the credit card because it wasn’t very much money (it was a small ad). And, the bank guaranteed the transaction and safety of my account. So, I e-mailed my account information to the newspaper along with the art and insertion order, happy that it was done.

However, the Friday it was supposed to run, I received an e-mail saying that my card had been rejected and the ad could not run. I was embarrassed and shocked because our card was in good standing. I called my US Bank contact and he was also baffled. He could only advise me to call the service number on the back of the card. I called the number and was told that because it was from out of the country, their computerized fraud protection system had denied it. I then asked them to override the system because it was a legitimate transaction.

I was told that they could not do that. Once the computer decided to reject the transaction, they could not manually override it. They had to provide a manual security code which the Israeli newspaper must get verified when making the transaction. Only then could the payment go through. So, I asked for the code so I could give it to the newspaper.

Nope.

They could not give it to me. The newspaper had to call for it, then include it in the electronic transaction. So, I summarized all this as clearly as possible and sent it off to the newspaper. The next day I received an e-mail from the newspaper explaining that they could not call and get the manual security code because their billing department was completely computerized, and there was no provision for such an action. Great. Two computers who cannot or will not talk to each other and who have control over their human counterparts. 

Exasperated, I finally dug out an alternate credit card and sent the newspaper all new card information. Then, immediately called the number on the back of the new card telling them to expect a transaction from Israel. Miraculously, a couple days later I received an e-mail from the newspaper saying that the transaction had gone through and the ad could run. So, I asked that the ad run in the next Friday’s edition.

On about Thursday, I received another e-mail from the newspaper saying that the Friday edition I wanted had already been sold out to capacity, and the ad would not run. Over here they just add another page and keep selling space. That one really surprised me. They did include in their note that  it would run in the following Friday’s edition. Thank goodness this was not a time-sensitive ad.

I’m happy to report that the ad finally ran, I think. You see, I asked for five tear sheets after the ad ran. I was informed that they could only provide three. OK, so I’ll take three. That was about two weeks ago, and I still haven’t received any tear sheets.

Believe it or not, I actually expect to receive my tear sheets eventually. This whole experience has made me appreciate the efforts of international business people everywhere. And, no, I don’t consider myself an international businessman as a result of this. But, I got a very brief peek into their window and got a quick tutorial on how complicated things can get.

Would I do it again?

Oh yeah.

Rob Charlton

Truth is the most powerful marketing tool in your bag. I don’t mean truth in advertising, as in not making false claims and being ethical in your communication practices. That’s an obvious given to anyone with an ounce of common sense.

I’m talking about being transparently honest with your audience with regard to who you are and how you relate to your public. Companies are so obsessed with putting a positive spin on information, whether its about the company itself or its products, that the public has become numb to it. You, I and everyone else out there can spot a whitewashed PR statement or an exaggerated product claim in an instant. But, too many corporate executives and business owners continue to believe they are somehow camouflaged from their lack of authenticity.

One of the best examples of a radio commercial that embraced truth was for a telephone company some thirty years ago. It had a reputation for providing poor service. So they made a number of internal adjustments to improve their service and then ran a radio campaign to promote themselves. The commercial began with the predictable statement about how good their service was. But, then, the announcer was interrupted with gales of laughter. By poking fun at themselves they immediately identified with the listeners beliefs, which laid the groundwork for presenting their message. The campaign was a huge success.

There are other examples of unexpected truths being used to provide powerful advertising messages, such as:

• Orville Redenbacher:  The world’s most expensive popping corn
• Avis:   We’re number two, so we try harder
• Listerine: The taste you hate twice a day

There is something about being flat-out honest about something that not only catches people’s attention, but leaps out at them from the crowd. It’s not what we, as consumers, are used to. And, that’s only one of the benefits.

When you say something that might be considered potentially uncomplimentary, you create credibility. If you’re willing to say something negative about your product, then you are obviously truthful, so can be trusted when you say positive things.

I’m not suggesting that companies should go out and start advertising negative things about themselves. But, you should not hide behind canned language that contradicts commonly held perceptions. It actually hurts you more than it helps.

The truth is powerful. The funniest jokes are the ones that are based in truth, the most memorable quotes are the ones that strike our deepest sense of truth, and the most powerful advertisements are the ones that are truthful.

And, that’s the truth.

When you write a headline for your ad, make sure it’s so clear that someone who has never heard of you or your product will understand it. Follow this rule and your ads will perform better every time.

One of the most common mistakes made by advertisers is coming up with some clever headline that leaves the reader clueless as to what is being advertised. With business owners and copywriters alike, there is this nagging need, born of some unwritten expectation, to create something clever and glib when writing a headline. Sometimes it works, but unless you’re an experienced copywriter who understands the difference between clever and clear communication, just state your message. Sure, it might be boring. But at least the readers will know what you’re about and you’ll have a chance to engage them if your product solves a problem they have.

(more…)

I read this phrase in a marketing book a number of years ago, and unfortunately, I don’t remember the name of the book or the author. But, of all the pieces of advertising advice that I’ve accumulated over the years, this is the most direct and universally useful.

It’s about them, not you.

In my 30+ years of helping people advertise their businesses; one of the most recurring issues is the owner providing reasons for customers to buy based upon the owner’s perspective. This is both completely understandable, and completely wrong.

When an entrepreneur throws his or her life into an effort to create a product or service to sell, it’s all-consuming. Not only is your investment and income on the line, but you tend to live your business every waking hour of the day. So, when you explain what you sell to potential customers, it’s only fitting that you describe all the things you do to make your product valuable.

What you should be doing is describing the benefits of your product from your customer’s point of view. Will it make your customer feel better, look better, richer or happier? How hard you work, your experience, how much you’ve sold, your education: none of that matters in an ad. It might matter later in the sales process, but not at the point of first contact, which is your ad.

It’s about them, not you is a great phrase to measure your ad copy against. It’s easy to be distracted by clever double meanings and playful ideas. But, if they don’t pass this test, don’t use them. Be fanatic about connecting more directly with your customers’ real needs and you’ll be rewarded with more effective advertising.

You’ve got your marketing plan worked out. Your budget is more than you would like, but you’re willing to commit to it. You’ve decided what media you are going to use, and you’re pretty proud of the deal you were able to negotiate. You’ve got your offer or message worked out. All that’s left to do is write your ad and get it produced. No problem. At least, that’s what most business people think.

Good business people are highly disciplined at measuring value. And, every step of the campaign development process has some basis in being able to measure something except the creative step. That’s where almost every entrepreneur falls down. Even the good ones.

Time and time again, I have seen the manager/owner write his own copy or try to direct a writer to create copy that is full of ad clichés that neither stand out nor convince. The result is predictable. All that time, effort and money is neutralized by ad copy that is only efficient at blending into the great background hum of “white noise”.

With that in mind, I have created a list of phrases and words to avoid. If you find any of these in your ad copy, re-write it. You can find words to get the same ideas across with more personality and originality.

1. Once in a lifetime
2. Friendliest store in town
3. Why pay more
4. Lowest prices of the year
5. Dare to compare
6. Lowest prices in town
7. Save like never before
8. Make an offer
9. Highest quality, lowest price
10. Best service in town
11. The perfect gift
12. For any budget
13. Public notice
14. Buy with confidence
15. Check out our great selection
16. Nobody beats our prices
17. We’ll save you money
18. Store-wide clearance
19. We sell more (item) than anyone
20. Hurry in
21. Everything must go
22. Never lower
23. Follow the crowds
24. Now is the time to buy
25. Don’t miss this sale
26. Save today
27. You won’t find deals like this…
28. Unbelievable prices (bargains, deals, etc.)
29. Boss is away
30. Gigantic sale

If you find yourself using any of the above phrases, go back and think of a more unique way to say the same thing. These phrases have been used so many times for so many products that there is simply no credibility to them any longer.

In fact, there are probably more that I have overlooked here.

Please feel free to add any others that you would like to never hear again.

Most savvy business owners and managers know that the best marketing strategy during a recession is to advertise as aggressively as possible. But, just in case you need some reinforcement to support that truism, consider the following information.

The first study conducted to measure the effectiveness of marketing during a recession was conducted by Rolland Vaile during the recession of 1923. He later published his report in the Harvard Business Review. It showed the biggest sales increases throughout the period during and following the recession were rung up by the companies that advertised the most.

The next studies were done during the recessions of 1949 and 1954. Again, results showed that companies that advertised had the most sales. But more importantly, it showed the companies that did not advertise not only lost sales during the recession, but continued to lag behind after the recession.

More studies were done during the recessions of 1958 and 1961 with the same results. But, this time they also measured profits. In every case, companies who quit or cut back advertising lost market share and lagged behind those who maintained their budgets.

Another study was done during the recession of 1970 with the same result. Then McGraw Hill conducted a study during the recession of 1981 and 1982 with the same result. Then David Ogilvy’s agency Group Center for R&D did one during the 1990 recession. You guessed it: the same result.

That’s ten separate studies over an eighty year period and every one of them returned the same result.

This is the time to be aggressive with your marketing. This is not to say you should be foolish with your budget and spend more than you can afford. But, don’t do what so many business people do, which is to take the fastest and easiest route to cutting overhead by slashing their marketing budget while hanging onto other expenses that could be trimmed.

There have been many studies over time that have proven that advertising during a recession results in better sales during the recession and more explosive growth after it’s over. In fact, most business people whom I’ve met know and understand this principle quite well. But, many continue to advertise using the same strategies they were using when the economy was robust.

A recession is an altogether different business landscape and must be approached with strategies that take this into account. We know that people tend to nest during a recession. Home and family become more important along with things that represent more traditional values.

Other traditional recessionary behavior includes changes in business relationships. Contract and finance terms tend to get renegotiated. Customers are more cautious with their purchases, as are businesses. People are more price sensitive. Customers may even trade down to less expensive models or temporarily quit buying some products.

Studies show that this behavior is caused more due to uncertainty of the future than a lack of funds. So, knowing all this, here is a short list of strategies that work best during a recession.

1.
People are looking for reassurance. Implement strategies that make buyers feel they are minimizing risk. Maybe enhance your guarantee or return policy. Or just include it more prominently in your messages.

2.
People are more comfortable with familiar things. Capitalize on your brand equity to reduce uncertainty. Include testimonials from past customers in your ads, or use product demonstrations. This might be a good time to remind customers of your longevity in the community. Implement a loyal customer program. Sponsor local events or activities. Ramp up your guerrilla marketing efforts and increase one-on-one visibility.

3.
If your product is a discretionary purchase, you may have to work harder to identify that which motivates people to buy and how the current climate is preventing them from acting. You may be forced to stimulate sales through extra incentives such as price cuts, financing offers, extra service or added value. Many marketing experts say you should avoid discounting. The truth is that sometimes you have to include that in the mix.

4.
If your product is a low priced discretionary purchase, emphasize the “reward” incentive. People will reward themselves with small indulgences because it makes them feel good and they feel like they deserve it.

5.
Include cost saving ideas, ways to help your customer’s dollar go farther, or ways to get more use out of your product.

6.
Many people think there are too many sales until they are in the market for something. Then they look for a sale. Have short bursts of extremely attractive sales, surrounded by a solid branding campaign that emphasizes value and service.

7.
For business to business, concentrate on personal relationships, especially with current customers. Competitors will be targeting them.

8.
For business to business, concentrate on messages about products and activities that will improve your customer’s bottom line.

9.
Concentrate on your core. Identify what you sell most of and sell the heck out of it. Identify what you do best, and ramp up your efforts even more. Identify who your biggest, most likely customers are and target them well.

10.
Implement an interactive strategy that makes connections with your best customers. Keep them engaged and demonstrate to them that you value them. There are many avenues, from blogging to e-mailing to Facebook, and yes, even Twitter. There is a combination that is best for you. Figure it out and do it.

You won’t be doing everything that is listed here. But this should provide you with enough food for thought that you can take what is appropriate and run with it.