Naked MarketingThe Bare Essentials

Robert Grede

Marquette University Press

Library of Congress Cataloging-in-Publication Data

Grede,Robert.Nakedmarketing:thebareessentials/RobertGrede.—2nded.p.cm.Includesindex.ISBN-13:978-0-87462-019-1(pbk.:alk.paper)ISBN-10:0-87462-019-8(pbk.:alk.paper)1.Marketing.I.Title.HF5415.G6572005658.8—dc22

2005037584

©2005byRobertGredeMilwaukee,Wisconsin

www.thegredecompany.com

Milwaukee, Wisconsin 53201-3141All rights reserved.

Marquette University Press

www.marquette.edu/mupress/

The paper used in this publication meets the minimum requirements of theAmerican National Standard for Information Sciences—

Permanence of Paper for Printed Library Materials, ANSI Z39.48-1992.

Outline

Preface to the Second Edition ..9

Introduction ................................ 11Whythisbookwaswrittenandwhatitcandoforyou,thesmallbusinessoperator

1 ¿Que Es Marketing? .................. 13Thepurposeof marketingistosatisfyneedsandwants

2 Knowing Your Market .......... 17Usinginexpensiveresearchtoknowwhoyourcus-tomersareandwhattheywant •Primaryvs.SecondaryResearch~17 •AdvertisingResearch~21 •MediaResearch~21

3 Long-Term Planning ............... 23 •Alookintothefuture~23 •TheMarketShareMatrix~26 •TheFourP’sofMarketing~28

4 Defining Your Market ........... 31Whoareyourcustomersandwhyshouldtheywanttobuyyourproducts? •TheBuyingProcess~31 •Maslow’sHierarchyofNeeds~32 •FindingYourMarketNiche~33 •DemographicsandPsychographics~34

� Naked Marketing

5 How to Develop A Strategic Marketing Plan ............37Thebasicsof yourStrategicMarketingPlan •TheBenefitsofPlaning~37 •SampleMarketingPlanOutline~386 Establish an Image for Your Firm ........................................ 51Decidewhoyouareandprojectthatimagetothepublic •Q ,S&P~51 •TheMissionStatement~54 •DifferentiatingYourProduct~58 •TheTotalApproach~60 •NameAwareness~63 •CommunicatingYourImagetoCustomers~64 •ChoosinganAdAgency~65

7 Ideas—How to Get Them, How to Use Them ......................... 71Applyingyourimaginationtothemarketingplan •TheFourI’s~71 •StealGoodMarketingIdeas~73 •“AHalfBubbleOffPlumb”~74 •Testimonials~75

8 Ten Commandments of Good Copywriting ................................... 81Captivateyourcustomerswithwordsthatcapturetheirattentionandsellproduct

9 Layout and Design ................... 91Usingvisualelementstomaximizeyouradvertisingimpact •IllustratingYourAd~91 •LayingOutTheCopy~93 •Billboards~94

Contents �

10 How to Make the Most of Media .............................. 97Marketingyourcompanyusingmassmedia •NewspaperAdvertising~98 •MagazineAdvertising~99 •RadioAdvertising~99 •TelevisionAdvertising~100 •CableTelevision~102 •Out-of-HomeAdvertising~102 •Reachvs.Frequency~103 •FlightingandFrontLoading~105 •MultipleImpressions~106 •TheWorldWideWeb~107

11 Using Publicity to Stretch Your Marketing Budget.......... 111Gettingyournameinthepaperwithouthavingtopayforit •WhatShouldBePublicized~112 •ChoosingaPublicRelationsAgency~114 •BeaGoodNeighbor~115

12 Introducing a New Product ................................ 117Improvingyourchancesforsuccess •TheProductLifeCycle~117 •InnovateorPerish~119 •TheRightProduct~120 •TheRightTiming~121 •TheRightPeople~122

13 Personal Selling ................... 125Coordinatepersonalsellingasapartof yourmarketingmix •Huntingvs.Farming~125

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•ThatAll-ImportantSalesForce~130 •SalesLetterswithImpact~133 •MailingLists~138

14 Retailing .................................. 141Tipsforincreasingthenumberof customerswhovisityourstoreaswellastheamounttheyspend •ImpulsePurchasing~142 •TheShoppingExperience~145 •BuildingTraffic~146 •AddLuxury~148 •GiftCertificates~150

15 Inexpensive Marketing Tactics That Work .................................... 153Avarietyof simple,yeteffective,marketingtacticsthatreturnagreatprofit •BusinessCards~153 •CollateralMaterial~153 •DoorHangers~154 •Forms~154 •OnHoldCommercials~155 •CustomerQuestionnaire~155 •SponsoraLittleLeagueTeam~156 •Uniforms~157

16 Tricks of the Trade Show .... 161Tactics to maximize your company’s trade showexperience •BuildingYourBooth~162 •AttractingTraffictoYourBooth~163 •Some“Do’s”and“Don’ts”~163

Contents �

17 How to Establish Your Marketing Budget ..................... 167Howmuchshouldyouspendonpromotingyourbusiness? •AffordableMethod~167 •Percent-of-SalesMethod~167 •ShareofVoiceMethod~169 •ObjectiveTaskMethod~169

18 Summary .................................. 171

Glossary ......................................... 175

Preface to the Second Edition

TherearereasonswhythisSecondEditionof NakedMarketingisbetterthanthefirst.

Notbecause it explains theprinciplesof marketinganybetter.Itdoesn’t.Theprinciplesremainthesame.Andthiseditionstripsawaythemystiqueaswellasthefirst.

Notbecause thegraphics are anybetter.Theyare,butthat’snotthepoint(thoughImuchpreferthiscovertotheFirstEdition).

Thepointis,timeschange.Backin1997whenthebookwasfirstprinted,theWorldWideWebwasarelativelynewphenomenon.SimplyhavingaWebpresence(in1997,manysmallcompaniesdidnot)wasimportant.TheSecondEditionexaminesWebmarketinginmoredepth,includingthelatestandgreatestmethodsof promotingyourfirmthere.

There isalsoanewsectiononDefining Your Market tohelpyoubetterpositionyourproducts(thebuzzwordis“branding”)byunderstandingyourcustomers’buyinghabits. I’veadded informationonnewproductdevelopment.Andthere’sanewsectiononRetailing for thosewho toil in thosetrencheseveryday.

Otherwiseit’sthesamebook.

Introduction

As a marketing consultant,Ifrequentlyen-countersuccessfulbusinessmenandwomenmystifiedbytherolemarketingplaysintheir

businesses.Theyunderstandtheneedforit;theyunderstandtheresultswhenitissuccessful;buttoooftentheyareconfusedbyhowitworks.

Thetruthis,thereisnomoremystiquetomarket-ingthanthereistopublishing,banking,architecture,oranyotherprofessionrequiringimaginationandintelligent application. “Mystique” is more ap-plicable to things like acupuncture, hypnosis orromance.Marketingissimplyafunctionalspecialty,like accounting. All companies in all industriesrequireitinsomeformoranother.

Butmarketingismorethanjust“afewadsinthenewspaper.”Mediaadvertisingisbutoneformof promotion,whichisonlyasmallpartof anoverallmarketingprogram. Typically,anentrepreneurbeginshisorherbusi-nesswithagoodidea:abettermousetrap,abetterwaytoservicehisclientsthanhiscompetitorsdo.Andfrequently,thefounderisaspecialistinhisorherindustry,agoodtechnician,engineer,ordesigner.Butseldomagoodmarketerforthecompany. Asthefirmgrowsandcompetitionincreases,sogrowstheneedtofocuslessontheproductandmoreonthecustomer.Theneedforthisshiftinfocusisfarmoreevidentintoday’smarketplacethaninyesterday’s. Over the past several decades, the marketingfunctionhasundergoneevolutionarychange.Dur-ing the 1950’s and 1960’s, marketing was fairlysimple.Therewere fewerproduct categories andfewerproductsfromwhichtochooseineach.Therewerefewmediavehicles:televisionwasjustcoming

12 Naked Marketing

of age, therewereonly twodozenmajorweeklymagazines,andFMradiohadyettobeheard. In the 1970’s, alternative radio, UHF televi-sion, special interestmagazines,and thegrowingsophisticationof directmailbroughtgreaterdi-versitytothemarketingmix.Marketersbegantospecializeandfocusonnichemarkets,onnarrowpromotionalmethods,andonspecificindustries.Successful products spawned product extensionsintorelatedcategories.Newcategoriesdevelopedalmostovernightasconsumersdemandingsocialchangealsosoughtmorediversityanduniquenessintheirlives. The1980’ssawtheconglomerationof themar-ketingindustrywiththeadventof mega-agencieslikeSachi&Sachi,McCannWorldwide,andDarcyMcManusBentonandBowles.Asaresult,manyskilledmarketingexecutiveswhowere“downsized”outof theindustryformed“boutique”agenciesandbeganspecializingintheirparticularpromotionalforte.Nichemarketingbecamemorefocused. The1990’sofferedanevenmoreperplexingsetof marketingandpromotionaloptions:hundredsof cabletelevisionchannels;radiostationsfeaturingshockjocksandChristianCoalitions;magazinesforeverypursuit,profession,orperversion;directmailtechniquesthatpinpointaparticularcustomerbybothdemographicsandlifestyle. AndnowtheInternet! In response to accelerating change, guerrillamarketing,toutedasthepanaceaforsmallbusiness,fosteredtheneedtogetinandgetoutof themarketquicklywithaslittleexpenseaspossible.Anobleundertaking,but totally futile if yourstrategy isill-planned,yourunderstandingof yourcustomersfaulty,oryourproductmessageunclear.Guerrillamarketingeventuallylostfavorasthesolesolutionfor small business and is now merely one tacticamonganarsenalavailabletotheastutebusinessowner.

introduction 13

Today, a greater variety of pitfalls awaits theuninitiated.Forthisreason,beforeyouspendtwonickelsonmarketing,itisimportanttounderstandhowthosenickelsshouldbespent.Youneedtoun-derstandthesimplefundamentalsof themarketingprocess.Thisisnottosuggestyou,asasmallbusi-nessperson,shouldnowconcentrateyoureffortsonlearningawholenewfield,orabandonyourareaof expertise.Rather,withanunderstandingof thebasicsof marketing,youcanbetterplanyourstrategyandincreaseyourcompany’ssalesandprofits. NakedMarketing canhelp you arrive at that un-derstanding. It explains the marketing functioninsimpletermsandoffersreal-lifeexamplesandeffectivetechniquesusefulinalmostanybusiness.It’sahandytoolforanyonewhowantstogetmar-ket-smartquicklyandpainlessly.

1

¿Que Es Marketing?

Listen to any ad man, brand manager ormarketing executive for more than a fewminutes, you’d think they were talking a

foreign language. Forward integration. Backwardchanneling.Psychographics(conjuresupimagesof AlfredHitchcock).Grossratingpoints.Quintileanalysis.Postpurchasepreferences. Thisismarketing? Itneedssimplifying.Throwawayallthatfluff (stripthemystique,if youwill)andaskyourself Whatisthisthingcalledmarketing? Mydictionarydefinesmarketingas“theoffer-ing of something for sale.” Sounds simple.Takesomethingandsellit. Whatif youhaveagreatproduct,butnobodyknowsyou’vegotit?Goodpoint.Let’stry:“Mar-ketingistheofferingof somethingforsalethatwetoldeverybodywehad.”OK,thatworks.Butwhatif everybodyknowsaboutyourgreatproductbuttheyhaven’theardof youandthereforetheydon’ttrustyouoryourcompany.Howabout:“Marketingistheofferingof somethingforsalethatwetoldeverybodywehadwithstrengthandconviction,soeverybodytrustsus.”OK,OK,it’sstartingtogetalittlecomplicated. Now,whatif everybodyknowsaboutyourgreatproductandtrustsyou,butcan’tseemtofinditintheirstores?Add:“andwearrangedforthephysicaldistributionof theproduct ina timelymanner.”Andwhentheydofindit,itcoststoomuch.Orit’sthewrongsize.Orthewrongcolor.Nowwe’reat:“Marketingistheofferingof somethingforsalewetoldeverybodywehadwithstrengthandconvic-

1� Naked Marketing

tion,sothateverybodytrustsus,andwearrangedfor thephysicaldistributionof theproduct inatimelymanneratapriceeverybodycouldaffordinsizesandcolorstheywanted.” Whatif somebodywantstobuyyourgreatprod-uctoncredit?Whatif yourgreatproductbreaks?Cansomebodygethismoneyback?Youbegintogettheidea.“Marketing”iscomplicated,perplexing,mystifying.Ithasmanymoreaspectsthansimplytheofferingof aproductforsale.Itbeginstoresemblesomesortof uncontrollableenigmanoonefullyunderstands. Ordoesit? By letting your customers know about yourproduct andmaking sure it’s in the storeswhentheywanttobuyit,andofferingitinmultiplesizesandcolors,aren’tyoureallyjusttryingtogivethemwhattheysaytheywant?Of courseyouare.You’resatisfyingneedsandwants.That’swhatmarketingis. Marketing is the satisfaction of needs and wants through the sale of your products or services.

That definition works for all possible contin-gencies.If yourpriceisperceivedtobetoohigh,youreallyhaven’tsatisfiedsomebody’sneedforanaffordable product. Likewise, if somebody can’tfind yourproduct in stores, youhaven’t satisfiedthat need, either. If your product could breakdown,offerawarrantyorrepairservice.If enoughsomebodieswantalargersize,satisfytheirdesireforyourproductinalargersize. Marketingisnotsimplycreatingaproductandselling it. It’s satisfying needs and wants. Figureoutwhatsomebodyneedsandwants,andgiveittothembetterandcheaperthanyourcompetitors.Thebestmarketersrecognizethisandreflectitintheiradvertising:

1• ¿Que Es Marketing? 1�

“Haveityourway,rightaway”(BurgerKing),“Wheredoyouwanttogotoday?”(Microsoft),“Nodissatisfiedcustomers”(Ford).

Too often, business owners view marketing assimplythetaskof creatingaproductandsellingit.Caseinpoint.ContrastProcter&GambleCompanywithUnionCarbideCorporation. UnionCarbidemakeschemicals.Yearsago,whenIwasanadvertisingexecutiveworkingontheGladconsumerproductsbusiness,thetopbrasstoldustheyhadanexcessof polyethyleneplastic.“DevelopsomenewproductsthatwillsellmoreGladbags,Rob.Getridof someof thisexcessplasticsinven-tory.”We all sat around and thought for awhileand eventually developed Handle-Tie Bags. Notbecauseweperceivedanyconsumerdemand,butsimplybecausewehadexcessinventory.(Wegotluckyandtheysoldrelativelywell.) Procter&Gamble,ontheotherhand,listenstoitsfieldsalesrepresentatives,grocerystoremanagers,andthecustomersthemselves.Theydevelopanewproductbasedupontheirknowledgeof customerswantsandneeds.Theytestitinsmallmarkets.Thentheyspendsinfulsumsonpromotiontocreateaware-nessandcommunicatethebenefit(thesatisfactionof theneedsandwants)toconsumers.Procter&Gambleisenormouslysuccessful.UnionCarbidenolongerhasaconsumerproductsdivision. Donotconfuseneedsandwants.Theyarenotthe same.Humanneeds are few: food, clothing,shelter,safety,belonging,esteem(andmaybeagoodmutualfund).Wants,ontheotherhand,aredesiresforspecificgoodsthatsatisfyaneed.Apersonneedsfoodandwantsacheeseburger,needsclothingandwantsanArmani suit,needs shelterandwantsahomeontheocean. Nowyoumaybegettingaglimmerof the“al-chemy” of marketing.Whoever can turn needsintowants reigns supreme. It’s as simpleas that.

18 Naked Marketing

Nevertheless, it presents an intriguing challenge.Critics love to attackmarketerswho rise to thischallenge.Theyclaimmarketerscreateneeds.Orthattheygetpeopletobuythingstheydon’tneed.Thisisamisperception. Marketersdonotcreateneeds.Theyareinher-ent in our society (food, clothing, shelter, etc.).Goodmarketerscreatewants.Theypointouthowaproductsatisfiesabasichumanneed.Theytrytoinfluencedesiresbymakingtheirproductsattrac-tive,affordable,andreadilyavailable.Theysuggesttoconsumers that theirdesire foresteemcanbesatisfiedbyaBMW.OrtheirdesireforsafetycanbesatisfiedbyaVolvo.(Ortheirdesireforbelongingcanbesatisfiedbyusingpublictransportation.) Needs exist.Wants can be created. Marketingis simply the act of satisfying those needs andwants. Notyoureverydaydictionarydefinition.Butitworks.

2

Know Your Market

So, how do you find outwhatyourcustom-erswant?Youdoyourhomework.Andinmarketing,

homework means research. Ask yourself, Whobuys my products now?What similarities existbetweenmycustomers?Dotheyallcomefromthesamegeographicarea?Aretheyallof thesameagegroup,incomebracketorotherdemographic?Whoelsemightbuymyproduct?HowdoIreachthosebuyers? Asyoucometoknowwhoyourcustomersare,you must also understand their buying motives,whattheyreallywant.Thenyoucantellthemwhythey should buy your products instead of yourcompetitors’.

Marketing Researchistheprocessof collecting, analyzing, and interpretingdata about customers, competitors, andthe business environment. The processincludesidentifyingyourtarget(Whodoyouwanttofindoutabout?),specifyingobjectives(Whatisityouwanttoknow?),anddeterminingmethodology(Howdoyougetthedata?)

Primary vs. Secondary Research

Okay,let’sbegin.Therearetwotypesof research:primaryandsecondary.What’sthedifference?Let’susesomeexamples.WhenyouwereinhighschoolandyouhadtowriteatermpaperonChina,orthematinghabitsof theBorneolizard,youprob-

20 Naked Marketing

ablydidn’tflytoChina,orpurchaseandobserveathousandlizards.Thatwouldbeprimaryresearch.Instead,youlookeduptheinformationinabook.That’ssecondaryresearch.Lot’scheaper.Secondaryresearchmeansgatheringinformationfromexistingsources,stuff thatothershavealreadycompiled. Industrytradegroupsandtrademagazinesofferheapsof secondaryresearchonyourindustry.Andit’sfreefortheasking.Everyindustryhasoneormoretradeorganizations.Evenif you’renotamember,becauseyoumightbesomeday,theyareoftenmorethanwillingtofillyour“In”basketwithamountainof information(alongwithamembershipapplica-tion), likestatisticsonbuyingandsellinghabits,peaksellingmonths,orageographicalbreakdownof thehighestconsumptionareasforvariousproductcategories.Trademagazinesoftenpublishlistsof thesalespeople,manufacturer’srepresentatives,andwholesaledistributorsforyourindustry.Justask. Whilesecondaryresearchischeaperandeasier,theremaynotbeanyinformationthatsomebodyelsehasalreadycompiledaboutwhoyourspecificcustomersare,orwhattheywant.Inthatcase,youneedtoconsideralittleprimaryresearch.Primaryresearchismoredifficultbecauseitmeansdoingityourself, compiling information through testing,interviewsorquestionnaires.Don’tworry.Itneednotbeexpensive.Notif youasktherightquestionsof therightpeople.Whatkindof questions?Hereareafewthought-starters:

1.Whatisthenameof ourproductorservice? 2.Whatdoesthisnamemeantoyou? 3.Howoftendoyoupurchasethistypeof product? 4.Whatistheprimaryreasonyoupur-chasethebrandyoudo? 5.What are the strengths/advantagesof ourproduct?

2• Know Your Market 21

6.Whatareourcompetitors’strengths/advantagesoverourproduct? 7.If youbelievetheadagethatacompanycanofferanytwooutof three—quality, serviceorprice—whichtwowouldyousaybestcharacterizeourproduct?

Whodoyouask?

Startinyourowncompany.Askthemostsenioremployee (after yourself). He has stored severalmegabytesof industryknowledgeinhiscraniumovertheyears.Butbecareful.Thatknowledgemaybebasedupondatathat’stenyearsold,whenhewaslastoutinthefield.Andcustomersdon’tcarewhat your company contributed to the industrytenyearsago,oreventendaysago.Customersdealwithnow,andsomustwe.Solistenforthefacts,andignoretheageoldopinions.

Other sources in your company include salesrepresentatives,thefolksclosesttoyourcustomers;yourreceptionist,whotalkstocustomerseveryday;your customer service department for the samereason;andevenshippingclerks,theonesreadingtheshippinglabelsonadailybasis.SALES PEOPLESalesrepresentativesareloadedwithinformation.The good ones know why your customers buyyourproducts,whatmotivatesthemtobuyfromyouoverthecompetition.Thesalesrepcanalsobeasourcefornewproductopportunities.Justbecarefulnevertoaska“yes”or“no”question.Forexample,don’taskyourrep,“Uncoveranynewusesforourproductlately?”It’stooeasytosayno.He’lljustscratchhischinforamomentandthenslowlyshakehishead. Bettertoappealtotheego.Ionceaskedasalesrepwhyshesoldsofewof aparticularproduct.Stungbymyimpliedcriticism,shecounteredthatittook

22 Naked Marketing

toolongtosellthosepenny-antelittleproducts.Bythetimecustomersdecidedwhattobuy,shehadspenttenminutessellingafivedollaritem.Shewentontocriticizethecompanyfornotpre-packinganassortmentof thebest-sellingproducts.Thenshecouldsell$50worthinhalf thetime.Itwas,of course,abrilliant ideaandweallwonderedwhynobodyhadthoughtof itbeforeandthecompanydidjustasshesuggestedandeverybodywashappy,including the customers but especially the saleswoman.SHIPPING CLERKSShippingclerksareawareof theultimatedestinationof yourproductsandcanalertyoutoentirelynewmarkets.Oneof ourshippingclerksoncepointedout that hewas shippingdozensof aparticulartypeof watchtoahospital.Investigationrevealedthehospital’sschoolof nursingusedthembecausetheirlargefaceandsweepsecondhandwereperfectforreadingapatient’spulse.Bingo!Awholenewmarketforourwatches:schoolsof nursing.

CUSTOMERSTheverybestwaytoknowwhatyourcustomerswantistosimplyaskthem.Periodically,allyourexistingcustomersshouldreceivea “Howarewedoing?” letter.Give themachance to soundoff,registeranycomplaintsorconcerns,offersugges-tionsforimprovement.Youwillbeamazedatthebenefits: head off problems before they becomeproblems; learn how you stack up against yourcompetitors.Andthesuggestionsyourcustomersoffermay lead toadditional salesor evenanewproductopportunity.Bestof all,yourcustomerswillfeelbetterbecausetheyhavethesensethatyoucareabouttheirneeds.

2• Know Your Market 23

Advertising ResearchAnothergoodwaytofindoutwhatyourcustomerswantisbytestingyouradvertising.Forexample,if you’resendingoutadirectmailpieceandyouareundecidedaboutwhethertouseHeadlineAtout-ingthedependabilityof yourproduct,orHeadlineBboastingthelowestprice,tryboth.Sendonetohalf yourmailinglist,half totheother,andwatchtheresults.Yourcustomerswilltellyouwhichismoreimportant. Retailstoremanagersunderstandthisconceptalltoowell.Theirreward(orpunishment)isimmedi-ate.If theyhaveapowerfulad,they’llseethenosesof eager customerspressedupagainst thedoorsbeforethestoreopensinthemorning.If not,theyhadbetterwriteagoodonefastorbeacccountabletotheirbuyers,merchandisemanagers,andmaybeeventhepresidentof thestore.

Media ResearchTestyourmediathesameway.Runthesameadintwoormorepublicationsusingadifferentcodeoneachreturncardoradifferenttollfreenumberineachad(orsomemeansof differentiatingbetweenresponses).Thenwatchtheresults.Whicheveronepullsthemostresponsesperdollarinvestedbecomesyourmediaof choiceforthefuture. Weranacouponadvertisementforachainof drycleaningstoresinthreedifferentpublications.Eachcouponfeaturedthesameoffer,buteachhadadifferentcodesowecouldcounttheredemptions.Afterafewweeks,werealizedonenewspaper,theonewiththebiggestcirculation,pulledbetterthantheothers.However,itsadvertisingspacecosttwiceasmuchasthenewspaperthatpulledsecondbest.Afterwedividedthecostbythetotalredemptions,the second-bestnewspaperproved themostcosteffective. Don’t testyouradmessageandyourmediaatthesametime.Itwillonlyleadtoconfusion.If we

2� Naked Marketing

hadvariedthecoupoonoffer,wewouldneverhaveknowwhetherthecouponthatredeemedthemostwasbecauseof theofferorthenewspaperwehadused. Marketresearchcanrevealuntoldopportunitiesfornewproducts,provideawealthof knowledgeaboutyourcompetitors,andhelpyoubetterunder-standyourcustomers’needsandwants.Researchforsomecanseemtediousorevenintimidating.Nottoworry.Theremainderof thisbookisdevotedtoprovidingyouwiththetoolsandaptitudeneededtobecomeaneffectivemarketerforyourbusiness.Amajorpartof yourunderstandingwillcomefromgraspingtheideaof marketingasalong-termpro-cess.Asamatterof fact,thatisournextsubject.

3

Long-Term Planning

Strategic planning is the long-term pro-cessthatmatchesanorganization’sresourcesagainstlong-termgrowthopportunities.The

planfocusesuponthefirm’sabilitytorespondtotheenvironmentinwhichitoperates:

• ChangesinTechnology• ChangesinIndustry Trends • ChangesinGovernment Regulations• ChangesintheEconomy• Changesintheavailabilityof Raw Materials

and Labor

Top Management gathers and discusses pastevents—what worked, what didn’t—and tries toimagineorpredictwhatmightoccurinthefuture.Thisrequiresalittlebitof forwardthinking.

The Future is OverratedHowcanyouplanforthefuturewhenyoudon’tknowwhatwillhappentomorrow? Factis,youcan’t.Noonecan.Thereisnomagiccrystalball.Yetunderstandingthefutureiscriticaltosuccessinbusiness—knowingwhatinnovationyourcompetitionmightbehatching,whatnewproductmightdoomyourline,howeconomicchangescouldaffectyourfirm.

Predicting the future is NOT the critical factor. Un-derstanding the future IS.

To understand the future, we simply connectthings—ideas,people, technologies—toarriveat‘possibilities,’waysinwhichthefuturemightaffect

2� Naked Marketing

ourbusiness,influencebuyinghabits,orchangeourlives.Goodmarketersconstantlyscanthehorizonfor technological changes that may affect theirbusiness. Trytoimaginegrocerystoresbeforeelectronicscanners,shoppingbeforecreditcards,orlifebeforeemail.Nowconnectthosetechnologies.Imagineavendingmachineatwhichyou swipeyourcreditcardtoreceiveaready-to-cookmealandwherethatpurchaseinformationisthensentviatheInternettothevendingcompanysotheycantrackinventoryinstantaneously.

The technology exists. The vending industry is currently experimenting with machines that do exactly that.

Today’sconsumersuffersfromAttentionDeficitEconomics. Inundatedwith advertisingmessages(upwardsof 10,000daily),ourattentioniscon-stantly in demand. Marketers use posters, shelf talkers,doorhangers,jingles,contests,andpop-upadsoncomputers.Anythingtograbafewmomentsof yourtime. Teenagersareprobablybestatmulti-tasking,andeventhoughwethinkit’sanabilitythatneedstobetreatedwithRitalin,it’sreallytheexactresponsefortheworldwe’vegiventhem:10,000thingshappen-ingallatonce,eachonedemandingthattheypayattention.

The most valuable commodity of all is not time, but attention. Increasingly, our attention can be bought, sold, or traded.

Imaginehowyoumightapplythatthinkingtoyourrelationshipswithyourclients.Howcanyoumanage,orevencontroltheirattention?Creatingawarenessforyourproductorserviceisonlythefirst step.Getting themtopayattention toyour

3• Long-Term Planning 2�

messageacknowledgesthattheyareprovidingyouwith that most valuable resource, their precioustimeandattention.

Unlimited Information Thisageof informationmakesexpertsof every-one.Wecanallbeanauthorityonsomething.Andlearnatleastsomethingabouteverything.Thiscanbedangerous,becausefacts,manipulatedtoourowndevices,canmisrepresentanything. Forexample,didyouknowthatdihydrogenmon-oxideisadangerouschemicalthatcausesthousandsof deathseachyear?It’shighlycorrosive,foundinmost everyhome, and is especiallyhazardous tosmallchildren! Soundsdangerous,huh?Oops,it’sonlywater. Thefactsareaccurate,butthemessageisbiased.Theproblemagainistime.Despitetheavailabilityof information,wedon’talwayshavethetimetocheckthefacts. Perhapsmost frighteningof all, technology ismaking location unimportant. We have instantaccesstoanybody,anywhere,throughcellphonesandcyberspace.Wearenolongerdefinedbyourlocation. Inthisneworderof thefuture,everythingisforsale(thinkeBay).Anythingcanbebought,sold,orexchangedanywhereintheworld.Theoldcornerstoreisjustaroundtheplanet. Bordersbecomemuddled(thinkEuroorNAF-TA).Wearenolongeracultureof many.Wearefastbecomingacultureof one.Aglobalculture. Privacyisbeingredefined,too.Withinstantaccesscomesinstantaccessibility.Toourpersonalidentifi-cation,ourpurchasehistory,ourcreditrating,ourpersonallives.Youcannotevenprotectthebordersthatdefinewhoyouare.AnyonewithanInternetconnectioncanpenetratethefaçade. Ultimately,thefuturewillnotcomeunexpectedly.Itisafterallanevolutionaryprocess.Youwillstill

28 Naked Marketing

needfood,clothing,andshelter.Youwillstillseekemployment,advancement,enlightenment.Youwillforeverfacethesamemundane,everydayproblemsyoufacetoday. Theanswerswillnotcomefromwheretheymightbeexpected.Weseldomlearnfromthethingswealreadyknow.Andnotallchangeisprogress.If youcan learntocombinetechnologyand innovationwiththebesttraditionsof thepast,changebecomeseasiertoaccept. Thefuturemaybeoverrated,butit’stheonlyoneyou’vegot.

The Market Share MatrixMostsmartexecutivesrecognizethatdependencyupononlyoneproductisrisky.Sotheydevelopamultitudeof productsorservicesandorganizetheircompaniesaroundtheseproductsorbrands.

TheseseparateproductgroupsarecalledStrate-gicBusinessUnits,orSBU’sforshort.Theyoftenhave separatemissions,objectives,managers, andcompetitors.

WaltDisneyCompany,forexample,makesmovies,operatesthemeparks,runsacruiseline,publishesbooksandmagazines,producestheDisneyChan-nel,runsretailstores,DisneyOnIce,andBroadwayMusicals.EachisaseparateSBU. TopManagementmustanalyzeeachofitsbusinessunitsconstantlytoassesstheirgrowthpotentialandallocatethefirm’slimitedresources.Oneof themostcommontoolsusedtoanalyzetheseSBU’sistheBostonConsultingGroup’sMarketShareMatrix.Thishelpsmanagersmakesmartdecisionsabouthowafirmshouldgrow.wCash CowsThesehaveadominantmarketshare

inaslow-growthmarket(think:CrestToothpaste).Productsarewellestablishedandcanbesustainedwithminimalfunding.Withnotmuchopportunityforgrowth,fewnewproductsareintroduced.Instead,

3• Long-Term Planning 29

aproductwillbe“extended”orimproved,somebellorwhistle added toenhance theproduct (think:CrestwithWhiteningPower).Firmsusuallymilkthesecashcowsandusetheirprofitstofundotherproductswithmoregrowthpotential.wDogsThesearemongrels,theproductsnobody

wants.Dogshave a small shareof a low-growthmarket.Sometimescalled“specialtyproducts,”theirpotentialislimited.Managementhasthreechoices:1.Pumpmoneyintothemtogainmarketshare,2.sellthemtoasmallerfirmthatcannurturethem,or3.discontinuetheproduct.wStarsThesehavedominantmarket share in

high-growthindustries.JustasinHollywood,starscommand management’s attention.They get themajorityof funding.Theindustryisgrowingquicklyanddemandisstrong.Theserequirealotof moneytokeepup.Eventually,thathighgrowthwillslow,andif thefirmdoesNOThavealeadingshareof themarket,thefirmwillendupwithadog.wQuestion MarksTheseareproductswithlow

marketshareinfast-growingmarkets.Theyoftenrequirethemostmanagementattentiontotryandanswerthequestion:“Whyhastheproductfailedtocompetesuccessfully?”Managementmustinvest

Boston Consulting Group’s Market Share Matrix

CowCowDogDogLow

GROWTH

RATE

High

M A R K E T S H A R ELow High

Each SBU may have separate objectives and strategies

?

30 Naked Marketing

heavilytogainmarketsharebeforethegrowthslows.Otherwise,they’restuckwithanotherdog. Use theMarket ShareMatrix to analyze yourSBU’sandhelpyoudecidewherebesttoinvestyourcompany’slimitedresources.

The Four P’sMarketingisaprocess.Givenourobsessionwithresults,weareoftenmisledintoseeingourbusinessasaproduct.Butexaminethephrase“businesswedo”or “doingbusiness.” “Do”isanactionverb.Itsignifiesthatsomethingprogressesovertime.Itisaprocess. Thinkof thisprocessasabigrecipe.Intoitgoalltheingredientsthatcausecustomerstobuyyourproductorserviceoversomebodyelse’s.Thename,thepackage,whereyousell it,howyouadvertiseit,yourwarranty—allarepartof yourrecipeforsuccess. Expertsput these ingredients, thesemarketingvariables,infourcategoriescalledtheFourP’s:

PRODUCT PLACE PROMOTION PRICEName Inventory Advertising DiscountsPackaging Channels Publicity CreditTermsSizes Locations SalesPromotion WarrantiesFeatures Transport PersonalSelling Returns DirectMarketing

Asamarketer,youmustchoosewhichingredientsbestfityourneeds.Youandyourcompetitorsshareacommonproblem:a limitedmarketingbudget.Whenyoushopforyourmarketingvariables,youcanonlyspendsomuchoneachingredient. Goodmarketingdecisionsarebaseduponesti-matesof thenetrevenueproducedbyinvestmentintheseingredients.Putallyourbudgetinpackaging,you’llhaveaproductthatreallystandsoutonstoreshelves,butnomoneytopromoteit.

3• Long-Term Planning 31

Meanwhile,yourcompetitormayhaveusedhisbudgettooffermorefeaturesormoresizes.Orhemayhavedevotedsomeof hisbudgettoadvertising,sometopromotions,sometodiscounts.Ultimately,heattractsmorecustomers. Thesecret,then,istobalancethemarketingvari-ablesandemphasizethosethataremostimportanttoyourcustomers.Thisstartsbyknowingwhoyourcustomersareandwhattheywant.

4

Defining Your Market

The marketing process cannotbeginuntilyouanswertwofundamentalquestions:

1. Who are your customers? 2. What do they want?

Let’sstartwiththesecondquestionfirst.

The Buying Process Everycustomergoesthroughafive-stepthoughtprocessbeforepurchasinganyproduct,consumersandorganizationsalike:

1. Problem Recognition2. Information Search3. Alternative Evaluation4. Purchase5. Post-Purchase Evaluation

Afellowwalksintoabaranddecidesheisthirsty(ProblemRecognition).Helooksoverthebar,try-ingtodecidewhathewantstodrink(InformationSearch).Henoticesthebartenderhasthreedifferentbeertaps(AlternativeEvaluation)andheordersaMillerLite(Purchase).Thebartenderserveshimandhe takes a long swallow, satisfyinghis thirst(Post-PurchaseEvaluation). Everybuyergoesthroughthissameprocess.Ide-ally,weasmarketersmakeeveryefforttofacilitatethisprocess,makeitgosmootherforourcustom-ers.Forexample,wepromoteourproductsothat,

3� Naked Marketing

whenaprospectivecustomerrecognizeshehasaproblem,hewillbeawareof ourproductasapos-siblesolution. Some promotions point out that we have aproblemwemightnothavenoticed.Forinstance,Coca-Colarunsadvertisingthroughouttheworld.Nottomakeusawareof theirproduct—we’veallheardof Coca-Cola,haven’twe?—buttopromptourthirst.WeseeanadforCoke,hearthateffer-vescenceasthetopispoppedopen,andwerunfortherefrigerator.TheiradvertisingsimplyservesasaremindertodrinkCoke. Anotherexample:Mytoothbrushactuallychangescolorwhenthebristlesbegintowearout.Ineedtoreplaceit.Bingo,ProblemRecognition. Theultimategoalof everymarketeristoeliminatetheInformationSearchandAlternativeEvaluation.You feel thirsty, you order a Miller Lite.That’scalledbrandloyalty.Youdon’tevenconsideranyalternatives.Beerandcigarettesenjoyhighlevelsof brandloyalty.Otherproducts,likegarbagebagsandbreakfastcereal,havelowbrandloyalty.

Maslow’s Hierarchy of Needs

Yearsago,aguynamedAbrahamMaslowcametotherealizationthatmantendedtosatisfycertainbasicneedsbeforeexperiencinghigherlevelneeds.Amanmaroonedonadesertedislandwillfirstseekto satisfy the basic physiological needs of sleep,waterandfood.Hewill thenbegintoconstructshelterforprotectionfromtheweatherorpreda-tors.Afterhehascompletedhisgrasshut,hewillseekcompanionship.Andsoontomorecomplexneeds—self-esteemorprestige.Ultimately,wearemotivatedtoattainspiritualfulfillment,somethingthatgivesmeaningtoourlives.

�• Defining Your Market 3�

Finding Your Market Niche

Every company has a niche, the place they fitintothegrandschemeof things.McDonald’shasits niche: burgers servedhot and fast.Procter&Gamblehasmanyniches.Inthedishwashingliquidcategory,forexample,theyhaveaproducttotakeawaygrease(Dawn),onethatissoftonhands(Ivory),andanothertomakeyourdishesshine(Joy).Eachhasitsbenefitstotheconsumer.

Maslow’s Hierarchy of Needs

• Self-Actualization Spiritual fulfillmentEnriching experiences

• Status and Ego PrestigeAccomplishment

• Love and Belonging FriendshipAcceptance by others

• Safety and Security ShelterProtection

• Physiological Needs Water and foodSleep

Mass Market(All Motor Vehicles)Market Segment(All Small Trucks)Target Market(Panel Trucks)Niche Market(Ambulances)

3� Naked Marketing

Companies typically divide the mass marketinto segments.These segments aredelineatedbydemographics (physical traits), psychographics(personality traits), or benefits (as in the P&Gexample)

Demographics and Psychographics

Marketers identify consumers by their demo-graphic similarities. Grouping people of similarage,forinstance,suggeststhat,becausetheyhavesharedsimilarlifeexperiences,theyhavemuchincommonandare likely towant similarproductsandrespondtosimilarpromotionalmessages. Andtheydo,toacertaindegree.BabyboomersdonLevi’sDockerspantsthatGen-Xer’swouldn’tbecaughtdeadwearing.Marketersof productsfromcookiestocarsusenostalgiatoremindusof pastexperiences.Thinkof alltheproductsthatuse‘60’sand‘70’sRock‘NRollsongsintheiradvertising.Baby Boomers relate to this music and pay raptattentiontotheadvertisementasaresult. Peopleof acertaineconomicbackgroundhavesimilartraitsaswell.Theyhavethedisposableincometopayforluxurygoodsandservices.Forinstance,youwouldn’tadvertiseRolexwatchestopipeweld-ersorofficeclerks.Thisisaprestigeproductthatisaffordableonlytohigh-incomeconsumers. Marketers also distinguish consumers basedupon similar personality attributes, their habits,theirhobbies,theirattitudesandbeliefs.Thesearecalledpsychographiccharacteristics.

Demographics Psychographics(PhysicalAttributes) (PersonalityAttributes)

♦Age •Interests♦Income •Opinions♦Location •Lifestyle♦Gender •Hobbies

�• Defining Your Market 3�

♦Ethnicity •Beliefs♦AnnualSales •Attitudes♦Numberof Employees •CorporateCulture Examine your current customers. Identify keycharacteristics they have in common. Some maybe demographic characteristics; others may bepsychographiccharacteristics. Youmaybesurprisedtolearnthatamajorityof your customers have similar characteristics.Yourproductmayappealprimarilytowomen,18to34,wholiveinruralareasandhavehouseholdincomeinexcessof $75,000annually.Oryourcompanymaysellamajorityof itsproductstoothercompaniesthathaveannualssalesinexcessof $100millionandarelocatedinthePacificNorthwest. Nowusetheold80/20Rule.Thissaysthat80%of yoursalescomesfrom20%of yourcustom-ers.Onceyouhavedeterminedthedemographicandpsychographiccharacteristicsof yourcurrentcustomers,youcantargetotherswithsimilarchar-acteristics.

5

How to Develop A Strategic Marketing

Plan

Planning is essential to the long-term health of your company.Yet often, theformalprocessof planningisshuntedaside.

Thebossknowswhathewants(thoughhedoesn’talwaystellanyoneelse),sojustimplementwhathesays.Orthebossistoobusywrestlingwithalliga-torstoworryaboutdrainingtheswamp. Evenif thebossrecognizesthatplanningises-sential,hemayfinditoftenmeetswithresistance.Thisoppositionisbasedupon:(1)thesensethatthereare “moreimportant”thingstodo;(2)theperceptionthatplanningissimply“busywork”andnotuseful;and(3)areluctancetocommittogoalsinarapidlychangingenvironment.

The Benefits of PlanningThere are three ways to develop a plan in yourcompany. One is the top down approach (oftencalledTheoryXmanagementwhereitisassumedemployeesdislikeworkandneedtobedirected)wherethebosssetsgoalsandallocatesthebudgetaccordingly.Thebottomupapproach(TheoryY,employeesliketheirworkandaremorecommittedif theyparticipateintherunningof thecompany)hasemployeessettingtheirowngoalsbaseduponthebesttheythinktheycando.Thebestapproachis often a combination (Theory Z, goals down,plansup)whereTopManagementsetsgoalsandtheemployeesareresponsiblefordevelopingplansdesignedtoachievethosegoals.

�0 Naked Marketing

Planningisessential,yetoftenmeetswithresis-tance.Thisoppositionisbasedupon:

♦Thesensethatthereare“moreimportant” thingstodo

♦Theperceptionthatplanningissimply “busywork”andnotuseful♦Reluctancetocommittogoalsina rapidlychangingenvironment.

Tobegin,TopManagementmust emphasize theimportanceof planning.If thebossisn’tsoldonplanning,nobodyelsewillbeeither.Togeteverybodyelsebehindtheidea,you,inasense,needaplanforsellingemployeesonthebenefitsof planning. Herearesomeof thebenefitsof planning:

♦Encouragesthinkingaheadina systematicmanner♦Sharpensthecompany’sfocus♦Preparesforunforeseendevelopments♦Leadstobettercoordinationof companyefforts♦Helpsdevelopperformancestandards♦Inspiresasenseof commitmenttothe planningprocess

The Marketing Plan

Whatdoesamarketingplanlooklike?Despitemyriadvariations,everygoodplanhascertainbasicelements:

♦SituationAnalysis♦Objectives♦Strategies♦Tactics♦Budget

Situation Analysis TheSituationAnalysisisthefundamentalbuild-ingblockuponwhichallplanningisconstructed.

�• Develop A Marketing Plan �1

Howcanyoudecidewhereyouwanttogounlessyouknowwhereyoustarted?It’sliketryingtomaketravelarrangementstoPoughkeepsiewithoutknow-ingwhatcityyou’reinrightnow. ManypeopleuseSWOT(StrengthsWeaknessesOpportunitiesThreats)toanalyzetheirbusiness.Thisoftenleavesanincompletepicture.Togetamorecompleteappraisal,thinkintermsof thethreethingsyouneedtoknow:

♦Us♦Them♦TheEnvironmentinwhichwealloperate

UsAnalyzepastsales,includinganexplanationof

recenttrendseitherupordown.Examineyourcompany’sstrengths,weaknesses,andopportu-nitiesforgrowth,aswellassaleshistory.Whyweresalesflatforthreeyears,thenjumpedtenpercentlastyear?

ThemNext,identifykeycompetitors.Whataretheirstrengthsandweaknesses?Andmoreimportantly,howcanyourcompanyavoidthestrengthsandexploit the weaknesses?What threats do theyposeforthefuture?

The EnvironmentExaminefivekeycomponentsof theenvironment inwhichyouoperateandimaginehowthosefivefactorscouldaffectyouroperationsandthatof yourcompetition.♦Technology—Whatchangesareoccurringthat

mightaffectyourproducts?♦IndustryTrends—Howhastheculture

changed?♦GovernmentRegulation—What regulationshave

changedourwillchangethatmightchangethemannerinwhichyoudobusiness?♦ The Economy—Is a recession imminent? Are

interestratesstable?

�2 Naked Marketing

♦RawMaterialsandLaborAvailability—Willshortagesaffectyoursales?Yourcompetitors?

ObjectivesNowthatyouknowwhereyouhavebegun,wheredoyouwanttogo?Everycompanyhasobjectives.Theyaresimplyamatterof decidingwhereyouwanttobeandwhenyouwanttogetthere.

wDoyouwanttolaunchanewproductorlineof products? If so,yourobjectivemightread:“Achieve10%market share within the first twelve months of productlaunch.” wAreyoutryingtoboostrevenuefromexistingproducts?

Yourobjectivethenmightread:“Increaserevenue12%fromexistinglineof productsoverthenextsixmonthswhilemaintainingcurrentprofitmar-gins.” Notice that each objective is quantifiable andfeaturesalimitedtimeframe.Itmakesyourobjec-tivesquantifiableandmeasurable.Italsoservesasabenchmark,toleteverybodyknowhowhe’sdoingalongtheway.StrategiesStrategiesarethethingsyouneedtodotoaccomplishyourobjectives.If yourobjectiveiswhereyouwantyourcompanytobe,thestrategyistherouteyouneedtotaketogetthere.Thereare,however,onlyfivestrategiesforgrowingyourbusiness,onlyfivewaystoincreaseyoursales.

1. Buy Market Share Tosellmoreof thesameproductsorservicestoyour

currenttargetmarket,youneedtotakecustomersfromyourcompetition.Thiscanbecostly.Itmayrequireyoutodropyourprice.Oryoumayneed

�• Develop A Marketing Plan �3

todevoteresourcestoadvertisingorpromotionsthatinducemorepeopletoabandontheircurrentloyaltiesandtryyourbrand.

2. Hunt Sellingmoreof yourproductsorservicestodifferent

marketscanalsobeexpensive.Anytimeyouhuntnewcustomers,youneedtocreateawarenessandcredibilityforyourcompanyandyourproductsinthatnewmarket.If youarecurrentlyofferingyourservicesinFloridabutwanttostartsellingin Georgia too, you will need to let all thoseGeorgiansknowwhoyouare,whatyoustandfor, the features andbenefitsof yourproductline.Youwill need to educate themas to themyriadreasonswhyallyourFloridacustomersaresosmartthattheyhavemadeyoutheleadingbrandinthestate.

3. Farm Thisistheeasiestandmostcost-effectivestrategy.

Whilehuntingnewcustomersisimportanttomaintaining a healthy sales picture long-term,farmingyourexistingcustomersismoreefficient.Statisticsshowthatthecostof sellingtonewcustomers ismore than12 timesas expensiveas selling to current customers.Your currentcustomersalreadyknowyou.Youdon’tneedtocreateawarenessandcredibilitywiththem.Theyalreadytrustyou.

Therearemanywaystoharvestsales:

♦RotationFarming♦SuggestiveSelling♦SellingAccessories♦IncentiveSelling♦TradingUp

Rotation farmingissellingtothecustomerwhobuysperiodically,atregularintervals.Forexample,afloristmightcontacthiscustomersand

�� Naked Marketing

requesttheirweddinganniversariesandspouses’birthdays.Hekeepsthedatesinhisdatabaseandreviewsthemperiodically.Thenshortlybeforeeachdate,hecallsandsuggestsafloralarrange-mentappropriatefortheoccasion.

Suggestive sellingPerhapstheeasiestsale,IcallthistheYou-Want-Fries-With-That-Orderstrategy.Yourcustomersarealreadyinabuyingmood.You’resimplysuggestingtheyspendalittleextratoenhancethequalityof theirpurchase.

Sell accessoriesIf youselladesk,suggestamatchingchairorfloor lamp.If acustomerbuysagizmomachine,suggesthepurchasethespecialgizmomachinelubricanttomakeitworkbetter.

Incentive sellingFreegifts,premiums,anddiscountsarealleffectivewaystobuildmoresalesfromyourexistingcustomerbase.Forinstance,buythesenewcosmeticsandgetafreetotebag.Orbuyonehamburgerandgetthesecondoneforhalf price.

Trade upLastyear,yourcustomerboughtthestandardmodelfromyou.Thisyear,sellhimthedeluxemodel.Andsellhimanextendedservicewarranty,too.

I repeat, this is the easiest and most cost-effective strategy. You should make it a big part of your marketing planning.4. New products Newproducts are absolutelynecessary for thehealthof yourcompany.Theyreplaceyourprod-uctsthatareindecline;theyprovidefreshrevenuefromnewmarkets;andtheypositionyourfirmasaninnovatorintheindustry. Buttheycanberisky.Statisticsindicatemorethan10,000newproductsareintroducedeveryyear.Amajorityfailinthefirstyear,morethan80%inthefirstthree.

�• Develop A Marketing Plan ��

Nevertheless,theyareanessentialmeansof build-ingyourbusiness.Imagineyournexttradeshowandyourboothhasnonewproductstodisplay. Newproductsandservicesgiveyoursalesteamsomethingnewtotalkabout,theyallowthemto“tradeup”customerstothenewmodel,andtheymayopenwholenewmarketsforyou.5. Merge or acquire Amergeroracquisitionmayofferamultitudeof opportunitiestoincreaseyourrevenue.Bymergingoracquiringanothercompany,youactuallymaycarryoutallof theotherstrategiesincombination. Acquiring or merging with a competitor mayindeed gain you market share, allow you to ex-pandyourmarkets,oritcouldbeanopportunityto sell different products (those of your formercompetitor’s)toyourcurrentcustomerbase.[MoreonNewProductsinChapter12]TacticsEntrepreneursoftenconfusestrategiesandtactics.“Developabrochuretosendtonewprospects”isnotastrategy.“Increaseawarenessamongpotentialcustomers” is a strategy.Thebrochure is simplya tactic for implementing that strategy.Whereasstrategies establish a theoretical outline of howyou want to achieve your objectives, tactics arespecificactions. Abrochureisatactic;anadinthenewspaperisatactic;promotionalpensort-shirtswithyournameandlogoonthemaretactics.Inotherwords,whileobjectivesandstrategiesareconceptualvisions,tac-ticsarethetangiblefulfillmentof thosevisions. Followingareexamplesof tactics:q Brochures(DesignandPrinting)q BusinessCardsandStationeryq Newslettersq DirectMailPiecesq PostageExpenses

�� Naked Marketing

q Telemarketingq PrintandBroadcastAdvertisingq AdvertisingProductionExpensesq SellingExpenses(IncludingTraining)q TradeShowAttendanceq SalesPromotions(Coupons,Sampling,etc.)q YellowPagesListingq AdSpecialtiesq PublicityandPublicRelationsq WebSiteDevelopmentandOperatingCostsq MembershipDues(TradeAssoc,Chamberof

Commerce,etc.)q Subscriptions(TradeJournals,AdvisoryRe-

ports,etc.)q Customer Questionnaires and Response

Cardsq CharitableDonationsq SportsTeamSponsorshipsq Golf Outingsq Uniformsq MarketResearch

BudgetOfcourse,eachtactichasaprice.Addupallthatyouplantouseandyouknowwhatyourbudgetmust be to achieve your goals.This method of calculatingyourMarketingBudgetiscalled“Objec-tive/Task”(sometimesreferredtoas“Zero-BasedBudgeting”). Othermethodsof determiningyourMarketingBudgetinclude:

wAffordableMethodwPercentof SalesMethodwShareof VoiceMethod

[Formoreaboutbudget,seeChapter17.]

�• Develop A Marketing Plan ��

Executive Summary After you complete yourplan,write abrief (nomorethanonepage)summary.Thisallowsevery-onetograspquicklythemainthrustof theplan.Itshouldincludeasummaryof keyfindingsfromyourSituationAnalysis,primaryobjectives,unusualstrategiesortactics,andthetotalbudget. Following is an abbreviated sampleMarketingPlanforyoutousetohelpdevelopyours(ortouseasacomparisonwhenpresentedonebyyouradvertisingagency).

Sample Marketing Plan

Okey Doke, Inc.Marketing Plan

Executive SummaryOkeyDoke,Inc.isaplasticinjectionmoldingfirmwith annual sales of $2 million.This plan wasdevelopedtoprovideopportunitiesforincreasingsales40%ormoreoverthenextthreeyears.Thecompanywillexpanditssalesterritoryandattractnew customers through direct mailing, publicityand the personal selling efforts of independentmanufacturers’representatives.Thetotalmarketingbudgetis$22,000.Situation AnalysisOkey Doke, Inc. uses technologically advancedplasticmoldingequipmentcapableof unattendedoperationtoprovidejust-in-timeservicetoclientsinMinnesota,Wisconsin, andMichigan’sUpperPeninsula.Saleshavebeenflatover thepast twoyearsduetoahighlyprice-competitivemarket,butexperiencedsteadygrowththefourpreviousyears.Thecompanyhasanexcellentreputationandtypi-callyturns15%of quoterequestsintocustomers.Opportunities exist for expansion to Iowa and

�8 Naked Marketing

NorthernIllinoisduetohigherpricepointsandfewercompetitorsinthisregion.

Objectives1.Increasesales10%inthenext12months,40%

overthenextthreeyears,whilemaintaining20%profitmargins

2.Retaincurrentmixof customerssonocustomerrepresentsmorethan20%of sales

3.Establishsalesof $200,000within12monthsfornewproductlineintroducedlastyearStrategies

1.Inallpromotionmaterials,presentclear,con-sistent imageof quality and service to all targetmarket

2.HireNewIndependentManufacturersSalesOrganization(s)inRockford,IllinoistosellNorth-ernIllinoisandIowamarkets

3.Emphasizenewproductlineinallpromotionalmaterials

4.Provideamplesalessupportforsalesrepresen-tatives

5.Developtrainingprogramsforsalesrepresen-tativesdesignedtoencourageloyaltyandenhanceserviceimageof firmTactics

1.SalestrainingHirenewindependentsalesgrouptocovernew

NorthernIllinoisandIowaterritory.Allcompanysalesrepresentativeswillundergothree-weeksalestrainingcourse.

2.NewCAD/CAMsoftwareCurrent average turn-around time of 10 days

canbecutto5daysbypurchasingaCAD/CAMdesign systemandusing computer-dedicated faxlinestoreturnquoterequestspromptly.

�• Develop A Marketing Plan �9

3.HoldAnnualSalesMeeting.An annual meeting helps generate a sense of

“teamspirit.”Itwillhaveelementsof bothwork(presentationof salessupportmaterials,shopfloortours, supplier tours, motivational speaker, etc.)and play (golf outing, baseball game, barbecuepicnic,etc.).

4.DevelopNewBrochure.Feedbackfromsalesforceindicatesaneedfora

moredetailedbrochurethatincludesnewproductlinelaunchedlastyear.Thebrochurecanbeusedasadirectmailpiece,a“leavebehind”atthesalescall,orasfollow-uptoacustomercontact.

5.DirectMailDistributionPurchase target prospect mailing lists by zip

code(NorthernIllinois,Iowa),StandardIndustryClassification(SIC)code,andsales(over$10mil-lionbutlessthan$1billion).Assumepostageatbulkrate.

6.PrintAdvertisingProductionDesignandproduceprintadvertisementempha-

sizingnewproductlineforuseintradeadvertise-ments.

7.TradeAdvertisingMediaAdvertiseinIndustryTradeJournalsatleastsix

timeseachtoachievemaximumimpact.8.MagazineReprints.Use high-quality reprints of company’s trade

journal advertisements for distribution by salesrepresentatives,inmailings,andattradeshows.

9.PublicityThecompanywilluseitspublicrelationsagency

todeveloparticlesof interesttotheindustrywhileportrayingthefirminapositivelight.EmphasiswillbeplacedonpublicationsintheMidwest,particu-larlyinIllinois,Iowa,Minnesota,andWisconsin.

10.ContingencyAcontingencyof tenpercentof thetotalbudget

shouldbesetasidetotakeadvantageof opportuni-tiesthatariseduringtheyear.

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Budget 1.Salestrainingforallsalesrepresentatives

Anewindependentsalesorganizationwillbehiredtoexpandtheareaservedbythefirmthusincreasingsales.Itmayalsoservetorelievetheownerof theburdenof salesinthenewterritories.Tenpercentcommissions to the new sales representatives ispartof thesalesexpenseof thecompany,adirectdeductionfromgrossprofit.Costof salestrainingfor5independentsalesrepresentatives(@$1,000each)is$5,000. 2.RespondtoQuoteRequestsFasterNew CAD/CAM software will shorten turn-around timeonquote requests, eliminating saleslost (estimatedat5%)due toslowservice.Thistacticsupportsthefieldsalesforceintheireffortstoprovidethebestserviceanditisconsistentwiththefirm’seffortstoenhanceitsserviceimage.Thecostof CAD/CAMsoftwareandtrainingis$5,600 3.HoldAnnualSalesMeetingThisprovidessupportforthesalesforce.Costis$5,000. 4.DevelopNewBrochureAnewbrochureprovidessupportforthesalesforce.It will be mailed to new prospects in NorthernIllinoisandIowaanddistributedat tradeshows.Costtodesignandprint2,0004-colorbrochuresis$6,000. 5.DirectMailDistributionApproximately1,000brochureswillbemailedtoprospectsinNorthernIllinoisandIowa.Thecostof themailinglistis$800;postageandhandlingis$1.00each.Totalcostis$1,800. 6.PrintAdvertisingProductionCosttodesignfour-colorfull-pageandquarter-pageadvertisementsshouldnotexceed$3,000. 7.Full-andquarter-pageadvertisingspaceintwoleadingtradepublications,onefocusedexclusivelyonNorthernIllinoisandIowamarkets,willcost$33,000.

�• Develop A Marketing Plan �1

8.ObtainMagazineReprintsReprintsfurthersupportthesalesforceandserveaspromotionalpiecesforavarietyof uses.Trademagazineprovideoriginalatnocost,butcolorcopiescost$1.00each.Totalcostis$200. 9.PublicityPublicity provides a credible forum for creatingawarenessandenhancingthefirm’sreputationforquality and service.All press releases andmediacontactswillbemadebyin-housestaff.Thereisnoadditionalcost:$0. 10.ContingencyAcontingencybudgetof tenpercent:$4,400

Total Budget: $66,000 Thisis3%of projectedsalesof $2,200,000,consistentwithindustryaveragespending.

6

Establish an Image For Your Firm

With some of the mechanics of plan-ning behind us,wecanbegintofocusonsubjects relatedtothe long-term

prosperityof yourcompany.Imageisoneof themostcrucial.Theclothesyourcompanywearsareimportant.Theyprojectasenseof whoyouareandwhereyou’regoing. Here’sanoldsayingI justmadeup: “Quality,ServiceorPrice—pickanytwooutof three.”Q ,S&P Ithappensallthetime.Yourcustomerwantsityesterday;hewantsitperfect;andhewantstopaynexttonothingforit.“Oh,andcanyoudeliverit?”Relax,he’ssupposedtomakedemands.Afterall,he’syourcustomer.Hewantsexceptionalquality,fastserviceandlowpriceandit’syourjobtoseethathegetsallthree.Orisit?Dothatforverylong,you’llbeoutof business. Choosingwhichtwooutof threebestsuitsyourcompanyiscriticaltoestablishingyourimageinthemarketplace.Thinkof itasabigequation:

Q + S = P If yourqualityishighandyourserviceisexcel-lent,yourpricemustbehigh,too.

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If yourqualityishigh,butyourserviceisslow,yourpriceshouldbelower:

Q+s=P Andif yousellsecond-qualitygoods,nomatterhowgoodyourservice,yourpricemustreflectthequalityof themerchandise:

q+S=P Forexample,Chef Pierre’sCafeFrançaisfeaturesescargotandfiletmignonandimpeccableservice.ButChef Pierremaycostyouyourcreditlimit. AMcDonald’srestaurantontheotherhandof-fersquickserviceandalowprice.Buttheirfoodcan’tcomparewithChef Pierre’s. If Chef Pierretriedtooffergreatquality,impeccableserviceandmatchMcDonald’spricestoo,he’dsoonbeoutof business. Chef Pierredoesn’tadvertiselowprices.NordoesMcDonald’spretendtohavethebestfoodintown.Neithertriestobesomethingtheyarenotinthemindsof theircustomers.Neithertriestoprojectanimageinconsistentwiththeirchoiceof Q ,S&P.Yetbothdoverywellsimplybybeingthebestattheirtwooutof three. Don’tgetmewrong.Sometimesyouhavetoofferallthreetokeepalong-standingcustomerhappy.If yourbestcustomersuddenlyhasanemergencyandneedsyourbestproductatalow-ballpriceandheneedsitimmediately,youcan’ttakethechanceof losinghim to a competitor. So yougivehimallthree,evenif itmeansyoulosemoneyonthetransaction. However, if you do offer all three—quality,serviceandprice—youhadbetterhaveconfidenceyoucanmakeupforanylossonthatcustomer’snextorders.

�• Establish an Image for Your Firm ��

By being flexible, some companies are able tocreatetheimpressionthattheircustomersreceiveallthree.Theycanadapttheirpricing,orservice,oreventhequalityof theirproductaccordingtotheircustomers’needs.Ineffect,theysimplechoosethetwowhichbestsuitthesituation. Aclientintheprintingbusinessusesthismethodeffectively.Hisfirmoffersallthree,butonlytwoatatime.“If thecustomerwantsanewbrochurefastandperfect,”saysDaleWilson,Presidentof WilsonPrintinginGoleta,CA, “Wemaychargeextra for the rush service. Likewise, if he wantsperfectqualitybutcanaffordtowaitforawhile,Icanbeatanybody’sprice.” Wilsonaddsthatheseldomofferstheothertwo,lowpriceandfastservice,together.“Qualitywillsuffer,andwe’renotwillingtocompromiseonthat.Itputsourcompany’sreputationinjeopardy.” Anyfirmwhooffersonlyoneof thethreewillsoonbediscoveredbyhiscustomers.Theyprob-ablywon’tbecustomersforverylong.Alowpricewillnotmakeupforbothpoorqualityandlousyservice.Norwillthebestproductbesoldatahighpriceif theserviceistooslow. Likewise,therearedangersintryingtoprovideallthree.Tryingtobetoomuchtotoomanycanstretchyourfirm’sabilitiesandresources. Anacquaintancewhorepairedboatenginesof-feredthesamequalitypartsashiscompetitorsandmatchedhiscompetitor’spricesdollarfordollar.Buthealsoprovidedfarsuperiorservice,paintingthe insideof themotorhousings, degreasing allthepartsbeforeassembly,andgenerallytidyinguphiscustomers’enginesforaestheticreasonsaswellaspeakperformance.Unfortunately,allthisaddi-tionallabortooktimeforwhichhehadtopayhisemployees.Hiscostswerehigher;hisqualitywasthesameashiscompetition.Andhispriceswerethesameorlower.Hiscustomerslovedhim,andhe

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lostmoneyoneveryone.Lastseasonwashislastseasoninbusiness. Whenyouchooseyourtwo,besureyourcustomersknowwhichtwo.If youchoosequalityandservice,tellthemthat,whileyoucan’talwaysguaranteethelowest price, you sell only the best merchandiseandwillbendoverbackwardtoservetheirneeds.Solongasyoufulfillyourpromiseof qualityandservice,yourcustomerscanappreciateyourneedtochargealittlemore.Orif acustomerknowshe’sgettingthelowestpricein town on a top-of-the-line washer and dryer,hewon’tbesodisappointedwhenhecan’tfindasalespersonimmediately. Quality,service,orprice.Pickanytwooutof three.Thencommunicatethatimagetoyourcustomersandprospects.AfterchoosingyourQ,S&Pposition,whichamountstoknowingyourcompany’smissioninthemarketplace,youarenowreadytoengageintheliterarytaskof writingaMissionStatement.

The Mission StatementItissaid,“If youdon’tknowwhereyou’regoing,anyroadwillgetyouthere.”That’swhyeverycom-pany,includingyours,needsaMissionStatement.Itdefineswhoyouareasacompany,setsthemood,articulatesthecorporateculture,helpsperpetuatefavorableworkmethods.Inshort,itservesasaguideonthelongroadtosuccess. Externally, theMission Statement is a beaconinthefog.Itprovidesmanagementafocuswhentheyarefacedwithuncertaintiesduetocorporateexpansion, competitive harassment, or industryderegulation.Internally,itdemonstratesleadershipandhelpstoinspireemployees. Foryourorganizationtohaveamissionstatement,itmusthaveamission,onebywhichyouprobablyoperateyourbusinessintuitively,onethatyourem-ployeesmayormaynotshare,onethatnowneedsarticulating.Writing a formal statement doesn’t

�• Establish an Image for Your Firm ��

justvoicethisunspokenmission,itendorsesitascompanypolicy. There are many benefits to having a writtenstatement.If youremployeeslivebyyourguidingprinciples,theydon’thavetoruntotherulebookeverytimetheymakeadecision.Theycansimplylookatthemissionstatementtoremindthemwhattheirbosswouldhavethemdo.Thiscanavoidalotof annoyingmeetings. Avoidingannoyingmeetings is justonereasonmissionstatementsarepopularamonglargecompa-nies.Boston-basedconsultantsBain&Co.recentlysurveyedtheuseof missionstatements.Morethannineoutof every10Fortune500firmsusethem.Theyaremorewidelyusedthananyothermanage-menttool.Why?Becausethecostisverysmall,andtheywork. Bigcompaniesusemissionstatementsindifferentways.Somearefanaticaboutspreadingthemission-aryzeal.TheRitz-CarltonHoteldisplaysitsCredoatmeetingsandexpectsitsemployeestobeabletoreciteituponrequest.BobGalvin,formerchairmanandCEOof MotorolaInc.,requiredemployeestocarryawallet-sizedcardof thecompany’smissionstatement, and occasionally asked them to showit. AtLeoBurnettAdvertisingAgency,wehadtoknowbothLeo’smissionstatement(“Ourprimaryfunctioninlifeistoproducethebestadvertisingintheworld,barnone.”)andmotto(“Reachforthestars.Youmaynotalwaysgetone,butyouwon’tcomeupwithahandfulof mudeither.”). Manymanagersusemissionstatementsintraining.ArthurD.LittleInc.usesitsMissionandGuidingPrinciplesasanorientationguidefornewemployees.McDonald’sQualityServiceCleanlinessandValue(QSCV)isanintegralpartof thetrainingof newhires. That is not to say any mission statement isbetterthannomissionstatementatall.Somemis-

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sionstatementsareunrealistic.BoeingCompany’sfundamentalgoalof achieving20%averageannualreturnonstockholder’sequity,orEarthCarePaper’smissionto “improve theworld”bothseemabitwishful. Someareunclear.GeneralElectric’s“Boundary-less...Speed...Stretch”orBallCorporation’spledgetomaintainhighlevelsof socialresponsibilitysoundgood, but leave the reader asking “what does itmean?” DexterCorporationusesjustonelong,run-onsentence:

Toberecognizedasanimportantandenvi-ronmentallyresponsivespecialtymaterialscompanythatderivessuperiorgrowthandreturnsfromqualityproductsandrespon-siveservicesbasedonproprietarytechnol-ogyandoperatingexcellencethatprovidesgenuinebenefittocustomersworldwide,rewardstalentedanddedicatedemployees,andsatisfiesshareholderexpectations.

Huh? Someareasfolksyasthefounder.In1926,I.J.CooperexpressedhisCooperTire&RubberCo.creedas“Goodmerchandise,fairplay,andasquaredeal.”BancOneCorp.usesthewordsof itschair-man,JohnB.McCoy:“We’lldealwithyoustraight,nofluff andnoexcuses...” TheU.S.AirForceusesamissionstatementassimpleanddirectasaB-52:“TodefendtheUnitedStatesthroughcontrolandexploitationof airandspace.” Your companymaynotbe entrustedwith thecontrolof airandspace,butamissionstatementisnolessessential.Itforcesmanagementtothinkstrategically, toooftenoverlookedamid theday-to-daycrisesfacingmostsmallbusinessowners.Amissionstatementalsoinspiresemployeestofollow

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theguidingprinciplesendorsedbytheirleader.Itcanevenserveasasalestoolwhenusedtoreinforceakeyproductbenefit. Developingamissionstatementforyourcompanyneednottakealotof timeandenergy.Usually,youas founderorpresident simplyneed tositdownafteralongdayof arduousalligatorwrestlingandmeaninglessmeetingsandsketchafewwordsonpapertoremindyourself whyyoudecidedtogointobusinessinthefirstplace. Duringarelaxedmoment,if youcanfindone,reflectonwhyyoudecidedtorunasmallbusiness.If you can recapture that inspiration, your mis-sionstatementwillmostlikelyturnoutinspiring.Becauseexpertsagree, themosteffectivemissionstatement inspires.To inspire, it must galvanizeemployees.Itmustgrabtheirattention,motivatethemtoworkharder,smarter,inwordsthatringtruefortoday,andfortomorrow.Eloquenceisnotessential.Anydivorcedpersonwilltellyouthereisnomissionstatementmoremovinglyphrasedthanthetraditionalweddingvows,ormoredifficulttoliveupto. Also, avoid corporatese. A credo like Dexter’s(above) won’t galvanize anyone outside the legaldepartment.Keep it simple anddirect.Phrase itjustasif youweretalkingtoafriend. Here’sagoodwaytostart.Answerin50wordsorless:Whyareyouinbusiness?Whythisproduct?Whythesecustomers?Picktheprinciplesyouliveby.Writethemdown.Thenbuildyourcredofromtheprinciplesyouwantyouremployeestoemulate.The Big Company examples above make goodthought-starters. Nowfollowthrough.Onceyou’vewrittenit,useyourmissionstatement.Shareitwithyouremployees.Post itaroundtheoffice.Display itatmeetings.Distributeittocustomersandsuppliers.Printitonyour letterhead,purchaseordersandinvoices.Useitasadirectmailingtoallyourcustomersand

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potential customers.Enclose a copy and a coverletterexplaininghowitwaswrittenandhowyouintendtoliveuptoittoday,andinthefuture.Itsomnipresencewill imprint itself onthemindof yourcompany.Itshouldbecomeyourcompany’scharacter,itsIMAGE.Itshouldinfluenceeveryfacetof yourbusiness.Thisincludesyourmarketingandadvertising,whichcommunicatesyourmissionandimagetoyourcustomers.Differentiating Your Product Whetherit’sthebiggerthis,thefasterthat,orthelongest-lastingotherthing,findingthatkeypointof difference,theuniquecharacteristicthatmakespeople want to buy your product over someoneelse’s, means the difference in winning or losingthesale. Even if there is littleornodifference inyourproductorserviceandyourcompetitors’,youstillneedtofindsomethingdistinctive. Famousadman,DavidOgilvy,firstrealizedtheimportanceof productdifferentiationbackinthe1960’s. He took a commodity product—gaso-line—andmanagedtosethisclient,ShellPetroleum,apartfromthecompetitionbysimplyidentifyinganingredientfoundinallgasoline,andclaimingitashisown.HisadcampaignforShell,withPlatformate,islegend. Now,allgasolinebackthencontainedPlatformate.ButOgilvyrecognizedtheimportanceof gettingtherefirst.Hisclaimpreemptedthecompetition.AndShellbecamethebest-sellinggasolineintheU.S.IttookyearsfortheotherstodispeltheideathatPlatformatewasuniquetoShell. Today,gasolinecompaniestrytocreateproductdifferences through serviceofferings.Manyhavecombined with convenience stores selling milk,bread,andotherhouseholdnecessities.SomeofferSpeedPassconvenienceatthepump.Anythingtosetthemselvesapartinacommoditymarketplace.

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Fortunately,notallof ussellcommodityproducts.Mostof ussellproductsthatcanbeeasilydiffer-entiated.Thesecretisfindingthatuniqueproductdifference.BecauseitMUSTbethethingthatyouadvertise. Here’s how to identify your product’suniquedifference. Everyproducthasthreeparts:

1. Actual Product2. Core Product3. Augmented Product

TheActual Productisthespecificthingcustom-ersreceiveinexchangeformoney(orbarter). If theybuyshampoo,it’stheliquiditself.If theybuyadrillbit,it’sthetwistingpieceof hardenedsteel. If theybuy an airplane ticket onMidwestAirlines, it’s simply the ticket itself, thepieceof paperthatpromisesaseatonboardtheairplane.

TheCore Productistheprimaryproductbenefitthecustomerreceives. Forshampoo,it’sthecleanhair.Forthedrillbit,it’sthehole.Andfortheairlineticket,it’stheseatfromheretowherever.

TheAugmented Productistheuniqueproductdifference,thecharacteristicthatmakesyourproductdifferent,betterthananyoneelse’sproduct. Fortheshampoo,it’stheshinyhair,thetangle-freehair,orthedandruff control.Forthedrillbit,it’s thehardenedcarbonsteel,orthecarbidetip.ForMidwestAirlines,it’sthefirst-classseating,theinflightchampagne,andaboveall,thechocolate-chipcookies. Good marketers promote more than simpleproductbenefits.Anyshampoowillgetyourhairclean.It’stheextrashine,body,ordandruff controlthatmakesitunique.Thatdistinctivecharacteristiciswhatmustbepromoted.

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MidwestAirlinesdoesn’tpromotethelowestfares,nordotheyemphasizetheirvastroutesystem.Theirsis“TheBestCareInTheAir”exemplifiedbytheirfirst-classserviceanddeliciouscookiesservedwarmduringyourflight. Often,theproductdifferencecanbefoundwithinoneof threecategories:Quality,Service,orPrice.Yourproductmayhaveexceptionaldurability,orspecialfeatures,colors,sizes,ormodels.Theseareallquality-relatedissues. Yourproductmayhavetheindustry’sbestwar-ranty,thefastestdeliverytime,oranoutstandingservicerecordif anythingevergoeswrong.Theseareservice-relatedissues. Price-related differences include low price,multiple price points, credit terms, or quantitydiscounts. Examineyourproductorserviceforthoseuniquecharacteristicsthatyou,andonlyyou,offer.Disregardthecorebenefits;yourcompetitorsofferthose,too.Findwhatmakesyourproductunique,andfocussolelyonthat.

The Total ApproachTounderstandtheconnectionbetweenimageandadvertising,wefirstneedtolookattwotypesof advertising.Onepromotesacompany’sproduct(orservice);theotherpromotesthecorporateimage.

Productadvertisingisdesignedtosellaparticularproductforalimitedtime.Examplesinclude:low3.9%financingonyournewcarthroughtheendof themonth;getafreetoasterwithyourdepositof $1,000ormore,whilesupplieslast.TheBuy-a-Kiddy-Meal-get-a-free-toyadyouseeonTVisapromotiondesignedtosellaspecificproductforalimitedperiodof time.That’sproductadvertis-ing.

Advertisers who use only product advertisingexpecteachadtoresultinanimmediateincreaseinsalesof theproductorserviceadvertised.But

�• Establish an Image for Your Firm �3

product advertising alone is less effective if thecustomerisunfamiliarwiththecompanyofferingtheproduct,or if the customerdoesnothave aclearlydefinedsenseof theproductimage.Mostlargeadvertisersincreasetheeffectivenessof theirproductadvertisingbysupplementingitwithcor-porateimageadvertising.

This typeof advertisinggoesbymanynames:image, identity, the “big idea.” It is intended toportraythecompanyinafavorablelight.Orbuildpositive feelings for your company’s products. Itencompassesthesetof beliefsyourcustomersas-sociatewithyourcompany.Thebettertheimage,thegreaterthetrustinyourproducts.

Thatwarm,fuzzyLittle-boy-about-to-meet-his-baby-brother-enjoys-an-order-of-fries-with-DadTVspot sells image:McDonald’s fries are greatwhenyouhavetodiscusslife’slittleproblems.Theadvertisement’sobjectiveistohaveyou,theviewer,associatetraditionalfamilyvalueswithMcDonald’s.It isn’t necessarily intended to sell French friesspecifically.

Those popular TV spots for IBM featuringsubtitledscenesof actorsinexoticlocalesdiscuss-ingtheglobalproblem-solvingcapabilitiesof IBMcomputersarenotdesignedtosellaspecificcom-puter.Rather,theycreateanimage.Theyportraythecompanyashero.

That’s allwell andgood for thebigboys,butunfortunately,asmallbusinessdoesn’talwayshavethebudgettoexecuteseparateproductandcorporateimageadvertising.Soitisallthemoreimportanttoensureyouradvertisingdoesboth.

IcallthistheTotalApproach.Itbeginswithcon-sistencyfromonemarketingefforttothenext.Forinstance,auniformdesignrelationship.Samecolorscheme,samelogoart,sametagline.Samegenerallookand“feel”toallyourmarketingefforts.Evenif apotentialcustomerskimsoveryourmagazineornewspaperadwithoutreadingitcarefully,the

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taglineorcorporatesymbolmayregister.Themoreconsistentyourmarketingeffortshavebeen,themorelikelythissubliminalassociationwillbe.

ThemostimportantfactorintheTotalApproach:makeiteasyforyourcustomerstorecognizeyourproductataglance.Unitedhasthefriendlyskies;McDonald’shasthegoldenarches;Keeblerhaselves.Eachidentifiestheproductorservicequicklyandef-ficiently.Eachjarsthememoryandalertsapotentialcustomertotheproductbeingadvertised.

The first step to achieving this power of as-sociationistodefineyourpositioninthemarket.Differentiateyourfirmoryourproductorservicefromyourcompetitors’.Areyourfirm’sproductsthemostreliable, the leastexpensive, thehighestquality,backedbythefriendliestservice?Yourposi-tionshouldhelpcustomersknowtherealdifferencebetweenyouandyourcompetitorssothattheycanmatchtheirneedstotheonethatcanbeof mostvaluetothem.

Then,pickavisual imagethatrepresentsyourmarketposition.Forexample,theHarrisBankinChicago uses a Lion to represent strength.Thatcorporatesymbolappearsontheirbuildings,theirsignage,theirbrochures,andalltheiradvertising.DawnDishwashingLiquidispositionedasagreasecutter. Each DawnTV commercial ends with adropof liquiddispellinggreaseinapanandthetagline,“Dawntakesawaygrease.”Simple,memo-rable,effective.

Unfortunately, some companies adopt an am-biguousimage.Likeapoliticianwhoisrunningforoffice,theyseektobedifferentthingstodifferentmarketsegments.Badmove.Theyonlysucceedinconfusingtheircustomers.Whetherit’sanewspaperad,brochure,orthesignonyourfrontdoor,usetheTotalApproachtoestablishinstantrecognitionandaconsistentimageforyourfirmanditsproducts.Consistentimagewillleadtoconsistentprofits.

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Name AwarenessOnceyouhaveclearlydefinedyourimage,promoteittocustomers.Fixitintheirminds.Itiscriticalthatyourcustomersandprospectsknowwhoyouareandwhatyoustandforsothatyouareamongtheirchoiceswhenitcomestimetomakeapurchase.Askpeoplewhytheyboughtaproduct,andinvari-ablytheyrespond “BecauseIheardof it.”That’snameawareness.

Customersof alltypes—whethersellingbusiness-to-businessortoconsumers—oftenbuyproductssimply because they are familiar with the name.Howdoyouacquirenameawareness?Startwithagoodname.Makeiteasytopronounceandspell.HenryBlochandhisbrotherspelltheircompany:H&RBlock.

Then, repeat the name of your company orproductwhereverandwheneveryoucan.Putitonyourpurchaseorders,invoices,andothermailingstosuppliersandcustomers.OutfityouremployeesinT-shirts and jacketswithyour companynameandlogoonthem.Getasignforthesideof yourcar.Sponsorasoftballteamandbesuretheteamwearsuniformswithyournameonthem.Frequentadvertising,conspicuoussignage,regularmailings,andpositivepublicity in thenewspaperorothermediawilltranslateinto“BecauseIheardof it.” Oneof thebestwaystoassurenameawareness:useamultitudeof tacticsacrossavarietyof mediasimultaneously.Forinstance,everymajorautomobilecompanysimultaneouslyrunsTVandradiospots,mailsbrochuresandproductannouncements,andgetswidecoveragefortheirnewcarsintrademaga-zinesandlocalnewspapers.Theydon’texpectyoutorunrightoutandbuyanewcartoday.Theyjustwantyoutoincludethemonyourshortlistwhenyou’rereadytotradeinthatoldDeSotoforanewsetof wheels. Makeeachadworkharderforyoubysupplement-ingitwithothermarketingtactics.Newspaperads,

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radiospots,publicity,brochures,newsletters,anddirectmailings,alltimedtoyourindustry’sbiggesttrade show. Suddenly deluged by your companymessage,yourcustomersandprospectswillbeginto sense a leader in the marketplace.They hearyournameontheradio,readastoryaboutyourcompanyinthenewspaper,thenseeyouradinatrademagazine.Youcanbetthey’llbemorepronetoreadyourbrochurewhenitlandsontheirdesk.They’llalsobemoreapttocallonyouratherthanacompetitorwhenit’stimetobuy,andyourprofitswillbeginspeakingforthemselves.Communicating Your Image

to CustomersSo,you’vedefinedwhoyouarewithyourMissionStatement,usedthattodefineyourcompany’simage,andnowyouhavedecidedtocreateawarenessforyourcompanythroughavarietyof media.Whichmediaarebest?Whodesignsyouradcampaign?Whowrites thewords?Whoproduces it?Who?Theansweriseitheryou,oranoutsideagency. Let’s consider you first. Anyone can open anadvertisingagency.Youdon’thavetopassawrittentestorapplyforanyspecial license.So,whynotyou?Yourunasmallbusinessnow.Whynotaddadvertisingtoyourlistof responsibilities?Lotsof smallbusinesspeopledo.Withno“entrybarrier”tobecomingtheirownadvertisingagency,theyseesomeof theadvertisingontelevisionorinmaga-zinesandthink,“Hey,Icanwritebettermindlessdrivelthanthat.”Ontopof that,adagenciesmarkupeverythingtheyproduceasmuchas20%,theycharge15%commissiononmedia,andtheydon’tknownearlyasmuchaboutyourproductorindustryasyoudo.Whoneedsthem? Youdo.Herearethreereasonswhy:

1.Anagencytakestheburdenof theproductionprocessoff yourhandsandmakessureeverything

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isdoneright.Agenciesmarkupproductionbe-causetheyearnit.Youmayknowhowtowritecompelling, persuasive ads; or you may knowwheretocontactagoodillustrator;youmayevenknowhowtospectype,judgeagoodchromolin,orreadaprinter’sblueprint(orVandyke).Butit’snotlikelyyouknowhowtodoallof thesethings.

2.Yougenerallypaythesamepriceformediawhetheryouuseanagencyornot.Bettertoletaprofes-sionaldotheplanningandbuyingforyou.

3.The pros at ad agencies are masters of theirspecific craft.Your lawyer or your accountantwillneverknowyourindustryaswellasyoudo.Theyknowlawandaccounting.Likewise,youradagencyknowsadvertising,andhowtoapplyittoyourbusiness.

Choosing An Ad Agency

Youhavethreechoiceswhendelegatingtheadvertis-ingresponsibility:

wAfullserviceagencywAnadvertisingboutiquewAconsultingservice.

Thefullserviceagencyisidealif youneedfullservice. Full service includes marketing research,mediaplanningandbuyingservices,ideaconcept-ing,copywriting,layoutanddesignwork,websitedesign,salespromotion,andproductionservices. BigFullServiceAgenciesgeneratesomeof thebestcreativeideasintheworld.Theiradviceandcounselmaybewortheverypennyyoupayforit. Unfortunately,BigAgenciesliketoworkforBigClients.Theirbestpeopleworkonaccountsthatgeneratelotsof income.Theymaydogreatworkonfull-pageadsinSportsIllustrated.ButaquarterpageinControlEngineeringisjustnottheircupof gin.Soyouraccountgetssloughedoff tothenew

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kidintheagency.Youmaylikethesoundof sayingyou’rewithJ.WalterThompson,butthebenefitcanoftenendthere. If you need a full service agency, go for onethatsuitsyoursize.Lookforasmall,personalizedoperationheadedbyoneortwopros,experiencedadvertisingprofessionalswhoworkoneachaccountthemselves.Theywillworkcloselywithyouandgettoknowyourmanufacturing,marketing,andsalesneeds.Theycanserveasasourceof experienceandadvertisingwisdom.Ineffect,youpayfortheirtal-ent,notagencyoverhead. Thenagain,if youdon’tneedalltheservicesof aFullServiceAgency,youdon’tneedtopayforthem.UseaBoutiqueAgency.It’sanalaCarteapproachthat often works well for smaller businesses. ABoutiqueAgencyisusuallyfoundedbyoneortwoprofessionalswithspecificskills.Theyspecializeinoneortwofunctions.Thatway,youdon’tpaytheoverheadforservicesyoudon’tuse.Youpayonlyfortheservicesyouneed. Forexample,youhaveadynamiteadthatraninyourlocalpaperandgeneratedlotsof sales.Nowyouwanttoexpandtoothermarkets.Youmayonlyneedamediabuyingservicetoplanandbuythemostefficientnewspapersinyourchosenmarkets.Or, your industry has only one trade magazinethatisreadbyeveryone.Andyouwanttocontinueadvertisinginitexclusively.Youmayonlyneedacreativeboutiquetodesignandexecuteafewin-novativeadsthatwillpullincustomers. ThethirdoptionistheIndependentConsultant.Theseareusuallysingle-personoperations.Theiroverheadislow,andyoucancountontheircloseattention.TheIndependentConsultantfrequentlyworkswithalooseaffiliationof similarone-man(orone-woman)operationstoprovideacompleterangeof services. Sometimes, theycan lackdepthof knowledgeinmorethanoneortwofunctions.Andtheymay

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trytodotoomuch,ratherthancallinguponotherswithmoreexpertise.Butif youfindonewiththerightcombinationof skills,onewho’sdemeanorandtemperamentarecompatiblewithyours, theIndependentConsultantmaybethemostefficientuseof yourmarketingdollar. Toooften, clients chooseagenciesbaseduponwho they know: an old friend from school, anacquaintance from church, or his regular tennispartner.Someagenciesexpecttheirpeopletospendacertainamountof timeonthegolf courseorthetenniscourtwooingnewbusiness.Theyevenpayfor theclubmembership.Butwhileyourgolfingbuddymaybeagreatguy,hisagency’sideasaboutadvertisingmaynotmeshwithyours. Friendshipandtrustareimportantinyouragencyrelationship.Butdon’tchooseyouragencysolelyuponthatbasis.Youmayenduppayingforitintheend.Andfriendsshouldn’tmakefriendspayfortherelationship. Before selectingyour advertisingfirmor inde-pendentconsultant,asktoseesomeof theirbestwork.Lookforexperienceinyourindustry.Whileyoucannotexpectthemtobefamiliarwithyourspecificproductorservice,lookforfamiliaritywithyourindustrycategory.Forexample,youcan’tneces-sarilyexpectthemtounderstandthemanufacturinganddistributionof semi-circularwidgetsmadeof vacuum-moldedhigh-impacttitaniumplastic.Butyouwouldcertainlywantthemtounderstandtheneedsof thesmallmanufacturingbusiness. Whenshoppingaroundforanagency,don’tbefooled by glamour. Some operations are run byhot,ambitioustypeswhoareonthemakeforthebigtime.Theyregardyoursmallaccountreallyasnoaccount,merelyamealticketuntilsomethingbettercomesalong.Theworktheyproduceforyouissmart-looking,flashy,andgenerallysellsthem,butrarelyyou.Itlendsitself welltofull-page,four-colorformats,whenwhatyouneedmayonlybea

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quarter-pageof black-and-white.Theirdemeanoriscaptivating,enthusiastic,andwinning.Theywillgofarinthisworld.Justmakesureit’snotatyourexpense. BettertolookforaTotalApproachagency.Notone-shotflashyads.Anagencyorconsultantthatdevelops a series of ads, brochures or collateralpiecesaroundacommonthemewilllikelybuildaconsistentimageforyou,too.Ultimately,theywillhelpyouestablishawarenessandrecognitioninyourindustry,andcreateastrongassociationfromonemarketingefforttothenext. Agenciesoffer immediateexperienceandskillsyoulikelydon’thave.Youcouldprobablylearntobeagoodadvertiserthroughtrialanderror,butit’sveryeasytowastealotof moneyif youdon’tknowwhatyou’redoing.Anagencyassumestheburdenof establishingawarenessandbuildingyourimageforyou. Whetheryoudodecidetobeyourownagency,orwhetheryousimplyneedtoevaluateyouragency’swork, for better advertising, focuson these fourfundamentalareas:Research,Media,Copywriting,andProduction.

ResearchThekindof marketinformationthatislyingaroundlargecompaniesjustwaitingtobetappedisoftentotallyabsentinsmallorganizations,whereexecu-tivesarelongongutreactionsandshortonfacts.Butlisteningonlytoyourself canbedangerous.Itis important to reviewyour companyobjectivelyandimpartially.Beginbyasking:

wWhobuysmyproduct?Thenask, wWhoelsecouldbuymyproduct?Coulditbeusedinanotherwaybyothercustomers? wHowisitbeingdistributed? wWhatdomycustomersthinkaboutmyprod-uct?

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If youfindyourcustomersdon’tthinkaboutyourproductoftenenough,youmayhaveanawarenessproblem.[formoreonResearch,seeChapter2]Media Onceyouknowwhoyourcustomersare,picktheappropriatemethodof reachingthem.Thisoftenmeanschoosingandbuyingmedia.Mediaadvertis-ingisthatartillerybarragebeforeyoustormthebeaches.Itcreatesawarenessandcredibilityforyourfirmandbuildsyourimageinthemindsof yourcustomers.Directmailworkswithyouradvertis-ing.Butitoftencomesoutof nowhere,droppedonadeskbyafaceless lettercarrier.Advertisingin theappropriatemediacanhelpestablishyourposition in the market and make your companynamerecognizablewhenyoursalespeoplecall,orwhenyoumailoutliterature.[formoreonMedia,seeChapter10]

Copywriting Copywritingisthebasisof alladvertising.Itcon-veysyourmessagetoyourcustomers,presentsyourcompany’simagetothemarket,andestablishescred-ibilityandawarenessforyourfirmandproducts.Itmustbedignified,informative,andnoticed.

The key to goodmedia buyi ng is

repetiti on

If you’re buying space in a newspaperor magazine, buy smaller ads and runthem more often. Generally, six is theminimum number of times an adshould run in order to create any typeof memorable image in the mind of acustomer. More is better.

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Themainobjectiveof anyadorpromotionalpieceistosell—andsubliminally,toconveyamessageof solidityandreliability.Butfirst,itmustcaptureattention.If itdoesn’tbreaktheboredombarrier,it’swasted.[formoreonCopywriting,seeChapter8]

ProductionProductionvalueisimportant.Eventhebest-writtenadwillmakeyourcompanylookbadif itisn’tpro-ducedwell.Rulenumberone:don’tscrimp.Artiststakeprideintheirworkasif theircreationsweretheirownchildren.Theyaimtopleasethemselves.They’llworkandreworktoachievea result thatmeets their personal set of standards. Hagglingwiththemoverpricewillresultinoff-the-top-of-the-headefforts.Youradswillsuffer.

AIDAAttention, Interest, Desire, Action

Grab their attention with a strong headline that includes the mainproduct benefit and, if possible, your company name. Next,create interest in that single product benefit. Describe it in detail.Create a desire for it in the mind of your prospect. Use examples.Finally, close with a call to action. Ask for the order. Tell thereader how and where to buy your product.

7

Ideas—How to Get Them, How to Use Them

Good marketing calls for Ideas(withacapitalI).Butwheredotheycomefrom?Howdoyouimproveyourskillsindevel-

oping them?Howcanyou increaseyourcreativeabilities and powers of invention to move yourbusinesstoahigher(richer)levelof success?HowdoyoucomebygreatIdeas? Try a little applied imagination. Contrary topopular opinion, necessity is not the mother of invention.Imaginationis.Imaginationcompelsustonewideas,inourbusiness,andinourpersonallives.Goodmarketingideasbeginwithimagination,too.Andyoudon’tneedtobeacreativegeniustocomeupwithcompellingideas.Itdoestakehardworkhowever,justlikeanyothertaskworthdoingwell.

The Four I’sYousayyoucan’tcomeupwithcreativeideas?You’repurelyaleft-brainanalyticaltype?Not necessarily. Good creative ideas begin withgoodanalysis. Icalltheprocessthe“FourI’s”:

INFORMATION, INCUBATION, INSPIRATION,and IMPLEMENTATION.

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INFORMATIONmeans thegatheringof re-sources.Tocomeupwithagoodcreativemarketingidea,immerseyourself ininformation.Allkinds.Trade journals, competitive reports, magazinearticles on business trends, even your company’sweeklyinventorylevels. Asanentrepreneur,youlikelyhavemostof thenecessaryinformationinyourhead.Toprimethepump,reviewsomedatathatmayseemunrelatedtoyourmarketingproblem.Analyze it.Examinetheconnectionsbetweenseeminglyunrelatedbitsof information.Writedownafewkeypoints.(Ourmindsretainthewrittenwordtentimesbetterthanthatwhichisreadorspoken.) Thenputitaway.Don’tthinkaboutitforawhile.AllowtheinformationtoINCUBATE.Allowyourbraintorest.Thinkaboutsomethingelseentirely.Gotoamovie,ortendtoyourgarden.Yourbrainischewingontheinformationyouhavefedit,analyzingtheproblemwhileyoudootherthings.Whenitisready,itwillprovideyourconsciousmindwithaninspiringidea. Suddenly,themusestrikes:INSPIRATION.Itmaycomewhileyou’redrivingtowork.Orwhileyou’re taking a shower. Sometimes it happens inthemiddleof thenight.(It’salwaysagoodideatokeepapadandpencilbyyourbedforjustsuchinspirations.Orbetter,amicrotaperecorder.)Yourbestideaswillfrequentlycomewithoutwarning,whenyou least expect them. If youdon’t recordthemimmediately,theoddsarestrongyou’llforgetthem.Gettheideasdownonpaper,nomatterhowcrazytheyseematthetime. Sometimes,theideamayonlybeintheembryostage.Saveitforlater.Youmaycomeupwiththerestof theconceptinthefuture.Oneclientdecidedtoopenadiscountcarpetingoutlet,butdidn’twanttoputtheword“discount”inhisnewname.So,wesatandthoughtandthoughtandwrotedowndozensof ways to visualize “discount.”The last

�• Ideas—Get Them, Use Them ��

onewecameupwithwasadollarbilltorninhalf.Today, it’s become a well-known symbol amongconsumerslookingfordiscountcarpeting. The last step then is IMPLEMENTATION.Anideaisnogoodwithoutit.Manyisthebrilliantmarketingideathatliesdormantanduselesssimplybecauseitwasneverimplemented.Writingdownyourinspirationisafirststeptoimplementation.Then,followthrough.Justlikeyourgolf swing,yourmarketingideawon’tgoasfarorendupwhereyouwantitwithoutfollowthrough. Often,thismayseemthemostdauntingof allthestepstocreatingimpactfulpromotionalideas.Butafteryouhaveyourideawrittendown,it’seasiertobreakitintobite-sizedchunks,andtoexecuteeachchunk.

Steal Good Marketing Ideas

Whathappensif youneedanidearightnow?Youdon’t have time to gather information. No timeevenfortheincubationprocess.Nottoworry.Tryresortingtothievery,thatis,stealsomebodyelse’sgoodidea.Notintheliteralsense,of course.Borrowmightbeabetterterm.It’strue:therearenonewideas,justnewinterpretationsof oldones.

Forstarters,stealanideafromthisbook.That’swhatit’sfor.Usetheconceptswithinthesepagesandadaptthemtoyourproductorservice.Considercreativeideasthathaveimpressedyouinthepast.AcleverTVcommercial,acompellingmagazinead.Thinkaboutwhatyoulikedaboutthem.Canthoseideasbeadaptedtoyourproductorservice?

Next, try thinking about how a big companymightsolveyourmarketingproblem.HowwouldProcter&Gambleadvertiseyourproductorservice?OrMcDonald’s?Astheideatakesshape,adjustittofityoursmallerbudget.

Sometimes,thinkingaboutanunrelatedbusinesscanfosternewideasforyours.Youhaveafriend

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inanotherlineof work.If youwantedtohelphersellmoreof herproductorservice,howwouldyouadviseher?Howcanyouusethatadvice inyourownbusiness?

“A Half Bubble Off Plumb”Sometimes, “creative” is simplyamatterof per-spective. Moveyourimagination“ahalf bubbleoff plumb”tofindthatcrazyideathatjustmightwork.Whenyou’restuckforanidea,trylookingatyourmarketingproblemfromanotherangle.Ignoreconventionallogicanduseyourimagination. Here’salittleexerciseyoucantry:

1.Setaproblemforyourself2.Writedownthreesolutions,totallyunrelated3.Mixupthesolutionstillonestrikesyouas workable

For instance, let’s say your ad won’t fit in thespaceallowedbyyourtrademagazine.Yourdesignisvertical;theirspaceishorizontal.Youcanredesignthead,orshortenthecopy,orsimplyeliminatetheillustration.Nowmixupthesolutions:redesigntheillustration,eliminatethecopy,orshortenthead. Ortrysomethingcompletelydifferent.Tipthesame ad on its side and change the headline tosomethinglike“We’llbendoverbackwardtoserveyou”or“Ourpriceswillknockyouover.” WhenAvondevelopeditslineof cosmeticsandrelatedproducts,theycouldhavesoldthemthroughdepartmentstoresandcompetedwithMaybellineandMaxFactorandahostof others.Didthey?No.Theyignoredtraditionalchannelsof distributionandtookadvantageof theneedforself-actualizationamongthescoresof home-boundwomen.Door-to-doorbecametheirmeansfordistribution,andtheirtickettosuccess.

�• Ideas—Get Them, Use Them ��

Two disparate ideas: the need for part-timeemploymentamongwomenreadytoblossomintotheirprofessionalpotential,andthedauntingtaskof supplantinggiantcompetitorsinthetraditionaldistributionchannel.Together,theyformedthebasisforAvon’ssuccess. Here’sanotherexample:Ioncewascompilingalistof waystosellcars.Onalark,Iwrotedownanoldretailgimmick:“Buyone,getonefree.”Takenatfacevalue,theconceptcouldberathercostlyforthedealer.Buttheclientlovedtheideaoncewedecidedsimplytoofferamodelreplicaof theautomobile,paintedinthecolorof theowner’scar,witheachpurchase. “BuyOne,GetOneFree”made for acompelling advertising headline, and the payoff wasanattractiveoffer.Itsoldalotof cars.

TestimonialsIt’samistaketobelievethatyouandyourimagina-tionareinalittleboatallbyyourselves.Youaren’t.Yourcustomerscanhaveideasandopinionsof theirown.Infact,thebestideasoftencomefromyourcustomers.They’recalledtestimonialsandtheyarethefoundationof alladvertising.Thinkaboutit:thesatisfiedhousewifeextollingthebenefitsof Tidelaundrydetergent,ArnoldPalmerandhislineof golf equipment,MichaelJordan’sshoes,EdMcMahonpeddling just about everything.All are examplesof testimonials.Thecustomerthinks,“If it’sgoodenoughforMichael,it’sgoodenoughforme.” Buthowcanyougetyourcustomerstotalkupyour firm? Simple, ask them. If they believe inyourproduct,theymaybeflatteredtoendorseit.Theeasiest(andmostcredible)testimonialscomefromyourcustomers.Aleadinghomeimprovementcompanyranacontestamongitsprojectmanagers.The manager with the most satisfied customers,evidencedbyactualletters,wonatripfortwotoHawaii.Youcanbeteveryprojectmanageraskedhiscustomersforaletter.Andtheownerwasno

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dummy. All those letters were framed and hungaroundtheshowroom.Imaginetheimpactwhenbrowserscamethrough.

Testimonialsfromsatisfiedcustomershavemanyusesinyourmarketingefforts.Theyaddcredibilitytoyourcompanybrochure.Enlargedandmounted,theymakeaneffectivedisplayattradeshows.Trysendinganotetoacustomeryou’vebeenwooing.Inyournote,mentionsomethinganothersatisfiedcustomer,withwhomhe’sfamiliar,saidaboutyourfirm.Theusesareasendlessasyourimagination. Whatbetterwaytogeneratecreativeideasthantosimplyaskyourcustomers?Let themtellyouwhattheylikebestaboutyourproducts.Thenletthemdoyourworkforyou;letthemtellyourothercustomersandprospects. Sortof soundslikesomethingTomSawyerwouldthinkuptosavehimself alittlework.He’dletHuckFinndoit. Verycreative.

Designing Your Copy Strategy

Advertisingisanon-personalcommunicationpaidforbyanidentifiedsponsor.That’stheAmericanAdvertisingFederation(AAF)definition,anyway.Buthowdotheadsgetwritten? Everyadvertisement—broadcastorprint—beginswithacopystrategy.Thisisthememowrittenbytheaccountservicepeopletothecreativepeopletellingthemthepurposeof theadvertisement.Differentadvertisingagenciesuseslightlydifferentmethods,buttheyallboildowntothreeessentialparts:

1.PrimaryBenefit2.Appeal3.Tone

ThePrimary Benefitisusuallyexpressedintermsof Q ,S&P.Whatistheprimarybenefityouwish

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tocommunicatetoyourreaders/listeners?Isitthequality(strength,durability,convenience)of yourproduct?Isittheservice(personalattention,fastservice)?Orisitprice(discounts,freeoffers,creditterms)? Goodadsconveyoneandonlyoneprimarybenefit.TheonlyadsthateversuccessfullycommunicatedmorethanoneprimarybenefitweretheoldMillerLitebeercommercials(“Greattaste,lessfilling”). TheAppealisthemannerinwhichyouconveytheprimarybenefit.Therearefivemajorappeals:

1.UniqueSellingProposition2.Testimonial3.Demonstration4.Comparison5.Sliceof Life

TheUniqueSellingPropositiondefinesthebrand,it’s image, and it’s primary benefit. It frequentlydoesthisusingeitheracritteroraslogan.TheLeoBurnettadagencyisfamousfortheirslogansandcritters.Backinthe1930’s,whenLeofirstfoundedtheagency,hedevelopedacritterfortheMinnesotaCanningCompanythatembodiedthebrandimage.ItbecamesofamousthatthecompanychangeditsnametoJollyGreenGiant.BurnettalsodevelopedTonytheTiger,CharlietheTuna,theKeeblerElves,andtheMarlboroMan.Theirslogansinclude“Flythefriendlyskiesof United”and“You’vecomealongway,baby”forVirginiaSlimscigarettes. Testimonialsarethenextbestthingtoword-of-mouthadvertising(seeabove)andcomeinthreetypes:celebrityendorsement,typicaluser,andactualuser.Celebritiesgarnerattentionbutoftencostmorethantheirvalue.Atypicaluserisonewhofitsthedemographic profile of the product’s users.Theactualuseris,well,anactualuser,onewithwhomtheprospectcanidentify.

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Demonstrationsworkwellontelevision,occa-sionallyinprint,andnotatallonradio.Idealforwhen your product does something unique (“Itslices,itdices,itcutsthroughtincansandtomatoeswithease”),demonstrationsshowtheproductinaction. Comparison,likedemonstration,worksinvisualmedia,butnotradio.Becarefulwhennamingthecompetitor.Youoffernameawarenesstoyourcom-petition,andsomeconsumersfeelproductbashingiswrongandwillbuythebashedproductjustforspite. UseSliceof Lifeif youwantyourproducttobecomeapartof people’severydayhabits.Showtheproduct in use inhome, car, boat, office, orwherever. Severalappealsareoftenusedtogether.Sliceof LifeisoftenusedwithDemonstration.AcelebritymaydemonstrateaproductinaSlice-of-Lifesitu-ation,followedbytheUSPsign-off.Forinstance,imagine Michael Jordan demonstrating the ma-neuverabilityof hisnewlawntractorasheputtersneatlyaroundawell-trimmedyardwiththetagline,“NothingrunslikeaDeere.” TheToneisthemannerinwhichtheAppealisdelivered.Mostoften,thetonedealswithemotions:sex,fear,humor.

Sex:“Usethisproductandhavebetterluckattract-ingamate.”

Fear:“Failuretousethisproductcouldcauseyouunduehardship”(oftenusedwhensellinginsur-anceorsecuritysystems).

Humor:Exaggerationof theprimarybenefittothepointof absurdity.

IrecentlywatchedaDunkin’Donutscommercialtoutingtheirspeedyservice.Duringapolicechase,thecrookstoppedoff foradonutandcoffee(so did the police officer chasing him), then

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continuedthechase.Speedyserviceexaggeratedtothepointof humor.

By using humor to sell, we create a bond, asense of belonging together, a sense that, “Hey,thisguy’sfunny.IthinkI’dliketoworkwithhim.”Herearefivereasonstoputhumortoworkinyouradvertisements:

1.Humorcausesintimacy.Itbreaksdownbarriersandbringspeopletogether.Thepeopleyoulikebestaretheoneswhogetyourjokes.

2. Humor attracts attention. It can make youradvertisingstandoutamidtheclutter.

3. Humor is more memorable. Most everyoneremembersagoodjoke,andenjoystellingittosomeoneelse.

4.Subtlehumorflattersyourintelligence.Thebestjoke is the one that makes you laugh for fiveseconds,andthinkfortenminutes.

5. Humor is endearing. After all, we would allrather buy something from someone we like,fromsomeonewhomakesuslaugh.

In some advertisements, a more staid approachispreferred.This is sometimescalled the “Talk-ing Head,” where a spokesperson, shown fromtheshouldersup,simplydeliversamessage.Thisspokespersonmaybedressedinalabcoattolendadegreeof authority. Onceyouhavedeterminedthebestcopystrategy(PrimaryBenefit,Appeal,andTone),younowhavetocreatethead.Thatbeginswithgoodcopywriting,thesubjectof ournextchapter.

8

10 Commandments of Good Copywriting

orHurry! Learn the

Truth About How to Write Miracle Ads!

You’re on a roll.You’vejustcomeupwithagreatcopystrategyandseveralbrilliantcreativeideas.Nowyouneedthemtrans-

latedintoaction.You’vedecidedtorunaseriesof newspaperads(orafewadsinyourindustrytradejournal,or a few radio spotsor television spots,or whatever) based upon your dazzling originalconcepts. Whetheryouuseaprofessionalwriterordothewritingyourself,youwantanadthatwillstandoutamongtheclutter.Astop-’em-deadadthatyourcustomerswillread,rememberandactupon. Howdoyoubegin? Follow the rules. Over time, certain edicts of advertisinghaveevolved.Theyarethemethodsof copywritingthatgarnerthegreatestresponse,cre-atethehighestawarenesslevels,andarethemostmemorable.Yes,thereareexceptionstotherules.And some very effective advertisements will oc-casionallybreaktherules.Butnotmany.

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The First Commandment: Start with a good headline

Fivetimesasmanypeoplereadaheadlineasreadthebodycopy.Agoodheadlineisthereforeworth80centsof youradvertisingdollar.Forthat80cents,packinyourbrandname,productbenefit,andacatchyappealtoyourtargetaudience. Don’t be afraid of a long headline. Researchhasshownthatheadlinesof tenwordsorlonger,containingnewsandinformation,consistentlyoutperformshorterheadlines.FamousadmanDavidOgilvy’sbestheadlinewas“AtSixtyMilesPerHourtheLoudestNoiseintheNewRolls-RoyceComesfromtheElectricClock,”(whichpromptedthechief engineeratRolls-Roycetocomment,“Itistimewedidsomethingaboutthatdamnedclock.”) Certain words or phrases work wonders in aheadline: how to, suddenly, announcing,miracle,wanted,adviceto,thetruthabout,hurry,compare,etc.Theymayseemlikeclichés.Buttheywork.

The Second Commandment: Make your copy interesting

Thepurposeof thebodycopyistoconveyyoursalesmessageinsuchawayastomakethereaderwanttoreadit.Theobjectof youropeningstatementistocompelthereadertoreadlinetwo;thepurposeof linetwoistocompelthereadertoreadlinethree,andsoon.Myadvice:writeyourcopyasif youaretalkingtothepersonnexttoyou.Shehasjustsaid,“Iwanttobuyanewgimcrack.Whichwouldyourecommend?”Thentellher.Usethelanguageyourcustomers use in everyday conversation. If yourcustomers are electrical engineers, speak in theirlanguage.If you’resellingtothemasses,bewareof abstractwordsorcomplexsentencestructures.Not“eschewobfuscation.”Rather,“avoidconfusion.” Sometimes,whenyouneedtohavealongsentencetoexplainsomecomplicatedthingoranother,fol-lowitwithashortsentence.Likethis.Forgetabout

8• Write Miracle Ads! 8�

completesentences.RememberthewayyourhighschoolEnglishteachertaughtyou?Withasubjectand apredicate?People don’t talk thatway.Youdon’tneedtowriteyouradcopythatwayeither.

The Third Commandment: Sell the primary benefit

Lookatyourproductorservice.Whatsetsitapartfromyourcompetitors’?WhyshouldIwanttobuyit?HowdoIbenefitbyusingit?Asaconsumer,Iwanttoknowwhat’sinitforme?Idon’tcareif you’vebeeninbusinesssince1919.Orthatyourspanking new building has the latest high-tech“state-of-the-art”(oh,please)equipment.What’sinitforme? So tell me, and tell me fast. Research showsreadershipdropsrapidlyinthefirst50wordsof copy,butverylittleafterthat.Deliveryourprimarymessagefirstanddo itquickly.Youmaynotgetanotherchance.

The Fourth Commandment: Sell only one thing

Withrareexception(“Lessfilling,tastesgreat,”forinstance)goodadspresentonemainsellingidea,the primary benefit to the consumer. Joy makesyourdishesshine.Dawntakesawaygrease.Ivoryismildtoyourhands.AllthreeareProcter&Gambleproducts,yeteachoffersadifferentprimarybenefit.P&Gknowsthattryingtoconveymorethanoneideainanadconfusescustomers.Sotheyofferthreeproductswiththreedistinctbenefits.

The Fifth Commandment: Use plenty of facts

Themorefactsyoutell,themoreyousell.Researchshowsanadvertisement’s success increases as theamountof informationincreases.Thereasoningissimple.Yourcustomerisnotamoron;sheisyour

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friend.Youinsultherintelligenceif youassumeafewadjectivesandsomesimplesloganwillconvinceher to buy your product. Shewants tomake aninformeddecision;shewantsalltheinformationyoucangiveher.OK,if you’resellingchewinggum,Iagreetherearenotawholelotof factsthataregoingtosellmoregum.Butif you’resellinghear-ingaids,ceramictiles,drycleaningservicesordrillpresses,fillyouradswithfacts.Themoreyoutell,themoreyousell. You may face a situation where you and yourcompetitors have similar products with similarcharacteristics.Ratherthanpromoteanyminisculedifferencesasuniqueproductbenefits,tryusingfactstopre-emptyourcompetition.Forexample,if yourmachineperformssimilarlytoothersmadebyyourcompetitors,advertisethesafetyfeatureswhichyou(andyourcompetitors)employinitsconstruction.Ortheingredientswhichyou(andyourcompetitors)usewhichbenefityourcustomers.Yourcustomerswillbelievethosefeaturesuniquetoyourproduct.Whenadvertisingmaster,DavidOgilvy,wroteadcopyforShellgasoline(acommodityproductif evertherewasone),hetoutedthefactthatShellcontains“Platformate,”aningredientcommontoallgasoline.Butbecausetheyadvertisedit,PlatformatecametobeidentifiedasuniquetoShell. Facts are truth.They can be trusted. And so,therefore,canyourproduct.Factsincreasereaderidentificationandproductcredibility.Usethem.

The Sixth Commandment: Use testimonials

They’rethenextbestthingtoword-of-mouthadver-tising.Theendorsementof afellowconsumerismorecrediblethanthewittybromideof ananonymouscopywriter.Awell-knownconsumerisevenbetter.Andnotnecessarilyexpensive. Sayyouhearof acelebritywhousesyourproduct.Makeanofferof freemerchandiseinexchangefor

8• Write Miracle Ads! 8�

permission tophotographhimorherwithyourproduct.Theideaof somethingfornothingappealstoeveryone,evencelebrities. ThelateBurlIveswasadepositorataCaliforniabankthatwasofferingfreefishinggearwithnewaccountopenings.MyclientofferedMr.Ivessomegearheadmiredfortherighttousehisphotographinourads.Itwasagooddealforbothof us.Wegot a highly respected, recognizable personalityendorsingourservices.Hegotsomenicefishinggear.Cost:about$100.The Seventh Commandment:

Thou Shalt not lieAlways tell the truth in your advertising andpromotion.If youdon’t,youwillbepunished.If foundout,thegovernmentwillprosecuteyou.Andconsumerswillpenalize youbynotbuyingyourproductasecondtime. Avoid superlatives.Shunbombast.Truthmustbethenumberoneethicof youradvertising.Youcan’t sayyourproduct is thebestunless it’sbeen tested against all major competitors andprovedreliablysuperior.Unsubstantiatedboastinghurtsyourcredibility.Noinflatedclaims,nolavishpromises, no implausible statements.The wholeadfallsapartonceashredof disbelief entersthereader’smind. Tosayyours is thebest,youneedtoprove it.Somecompaniesgotogreatlengthstoprovetheirproducts superior to competitors’. As a brandmanageratProcter&Gamble,RogerSmalespentyearstestinganobscuretoothpastecalledCrestuntilhewasabletoobtainadefactoendorsementfromtheAmericanDentalAssociation.He slapped itonthebackof everytube(“Cresthasbeenshowntobeaneffectivedecaypreventivedentifricewhenused...etc.”).ItpropelledCresttoitsnumberoneposition,andSmaletothePresidencyof P&G.

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Years ago,when Iwas an executive at theLeoBurnettAdvertisingAgency,wefilmedatelevisioncommercialforGladGarbageandTrashBags.IntheTVspot,anelephantsteppedontwobagsof garbage,aGladbagandagenericbag.(Thegenericbagbroke;theGladbagdidnot.)Beforewecouldairthisspot,wehadtoprovetothenetworksthatwehadusedrelativelythesamegarbageineachbag,andthatthegarbagewasrepresentativeof garbagefoundintrashcansonthestreet. Wedid.Itbecameknownasthe“SanFranciscoMix.”We enlisted the services of aWest Coastresearch firm to determine the size, weight, andcontentsof theaveragetrash.SomebodyactuallylookedinseveralhundredSanFranciscotrashcans;countedthenumberof bottles,cans,pizzacartons,andbananapeels;andconcludedthatthe“average”bagof garbageconsistedof:

—8.3%metalproducts(cansandlids) —12.5%glass

—3.8%wood—12.5%yardwaste—25.0%foodwaste—36.3%paperproducts(includingatleast onepizzabox)—1.6%plastic

(Forthetest,wereplacedtheglasswithequalweightof plasticsoasnottoinjuretheelephant.) Youprobablywon’thavetogotosuchlengthstoassuagetheskepticismof yourcustomers.Thatdoesn’tmeanyoucan’tbeenthusiasticaboutyourproductorservice.Justdon’tletyourenthusiasmleadyoudownthepathof “hyperbole.”Or“hyper”anything. Whileit’saninherenttendencytobelieveyourproductistrulythebest,yourcustomerswon’tun-lessyoucanbackitup.There’sanaturaltendency

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tolooksidewaysattheguywhosimplysays,“Trustme.”

The Eighth Commandment: Ignore awards

ThereoncewasanoratornamedAeschines.Whenhe spoke, people said, “My, what a wonderfulspeech.”TherewasanotheroratornamedDemos-thenes,ungraceful,withaspeechimpediment.Yet,whenhespoke,peoplesaid,“LetusmarchagainstPhilip!” Aeschines got admiration. Demosthenesgotaction. Thepurposeof advertisingistocreateaction.Nottocreatenoticefortheaditself.Nottowinawards. Action. Advertising must create a desirefortheproductorservice.Thedesiremustbesostrongastocompelapersontogooutandbuyit.Goodadvertisingsellstheproductwithoutdrawingattentiontoitself. Some of the biggest and best agencies ignoreawards completely. They decline to enter theiragency’sworkinanyawardscontests.Theybelieveawardscreateafalseemphasisontheaditself ratherthan the product.They also believe awards taketimeawayfromtheworktheirbestcreativepeopleshouldbedoingfortheirclients.

The Ninth Commandment: Tell them where & when to buyYour advertisement has grabbed their attention;they’vereadyourbrilliantcopy;they’repoisedtobuy.Nowwhat? Create action. If you want them to buy yourproduct,tellthemwheretofindit.If youwanttogenerateleadsforyoursalesforce,tellthemtocallforafreebrochure.If youwantthemtoorderyourproductoverthetelephone,besuretoincludeyourtelephonenumber. Createurgency: “Calltoday,beforewerunoutof gimcracksatthis low, introductoryprice.”Or

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“Stopinourstoretoday.Thesaleendsatmidnighttonight.”Makethemactnow,beforetheymoveontootherthingsandforgetaboutyourgreatoffer.

The Tenth Commandment: Review your ad for three key elements

First,doesithaveIMPACT?Doesitgrabthereader’sattention?Doesitbreaktheboredombarrier?Mostnewspapersareabout60%advertising;tradejour-nalsoftencontainevenmore.Willyouradstandoutandstopthereaderfromturningthepage? Second,isitonSTRATEGY?Doestheadcom-municatetheprimarybenefit,andonlythatprimarybenefit,of theproductorservicebeingsold?Nottwenty-sevenotherthingsyouwantedtosay,like,“We’ve been at this location for 32 years.” (Sowhat.)Or,“Andtryourgizmoproductwhenyoubuyourgimcrack,orournewdoodadsif youdon’tlikegimcracksorgizmos.”Whatareyoutryingtosell?Remember,onlyonebenefitperad. Andthird,isitHONEST?Wouldyoubewillingtoshowittoyourmother? Youmightthinkfollowingtheseruleswouldmakeforprettydulladvertising—thatitwouldcausealladstolookthesame,andthatremainingwithintheboundariesoutlinedabovewouldlimitcreativity. Notso.Consider:Shakespearemanagedtocreatemanyinterestingstorieswhileconsistentlyremainingwithinthelimitsof iambicpentameter.

9

Layout and Design

There are three basic elements to a good ad:

1.Theillustration —adrawingorphotographinaprintad —thevideoportionof atelevisionad2.Thecopy —inaprintad,thetype,includingheadline, subheads,tagline,logoetc. —theaudioportionof abroadcastad3.Theflow —inaprintad,thelayout —therhythminabroadcastad

ILLUSTRATING YOUR ADApictureisindeedworthathousandwords.That’sbecausewelearnavastmajorityof whatweknowwithoureyes.Factspresentedtotheeyeandearare68%betterrememberedthanfactspresentedto the ear alone. Using photos or drawings inyouradvertisingwillmakethembetterread,betterremembered.Hereareafewhintsformakingyouradsstandoutamidtheclutterinnewspapersandmagazines.

Keep it simple.Focusononething,oneperson,oroneevent.Crowdsbewilderyourreaders.Show your product.If yousellaproductratherthanaservice,showitinthemainillustration.Orshowitattheend.But

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showitsomewhereinyourad.Letyourreaderknowwhattolookforwhenshegoesshopping.

Make your visual match your headline.Yourphotoordrawingshouldtelegraphthesameproductbenefityouuseinyourheadline.

Use photos.Photossellbetterthandrawings.Andthey’rebet-terremembered.They’reeasierforyourreadertoidentifywithbecausetheyrepresentrealityratherthanfantasy.(Exceptions:drawingsworkbetterforhumororwhenfantasyisthedesiredeffect.)

Use visuals that arouse curiosity.YearsagoHathawaycreatedmysterybyusingamodelwearingablackeyepatch.Theirshirtsbecamethenumberonebrandusinganeyepatch.Morerecently,Microsoftusestheintensecuriosityof computerusers(“Wheredoyouwanttogotoday?”)tosuc-cessfullybuildtheirbrandimage.Use visuals that demonstrate your product.Master Lock uses a vivid demonstration with ariflebulletsmashingintotheproduct,butthelockdoesn’topen.Use visuals that show comparisons.Procter & Gamble’s Cheer Detergent shows thedramatic difference in the color retention on acolorful shirt after50washings inBrandXandafter50washingsinCheer.

Use visuals to evoke humor.Cartoonsworkespeciallywell.Theyhaveuniversalappealandoftengarnerbetterreadershipthanpho-

9• Layout and Design 93

tographs.ForNautilusConditioningCenters,weusedacartoontopokesomelightheartedfunattheintimidatingnatureof exerciseequipment. One more thought: Research shows men andwomen identifywith their own sex in advertise-ments.Mostwomenwillignoreanadfeaturingaman.Likewise,whenyouuseaphotoof awomaninanad,youexcludemen.Useababy.Babieshaveuniversalappeal,especiallytowomenover25yearsold.Michelintiresmakeespeciallygooduseof thistechniquewiththeiruseof babiesand“Somuchridingonyourtires”advertisingslogan.

Laying Out The CopyThecopyinyourprintadvertisementisanimportantpartof itsvisualappeal.Gooddesignandlayoutkeepthereader’seyeflowingfromoneelementtothenext.Noclutter.Noconfusion.Nodistractions.Agoodadlayoutcombinesartwithmotivationalpsychology.Anadthatjustlooksgoodisabadad.Itmustalsosell. Hereareafewtipsforlayingoutyourcopysothatyourreaders’eyesfollowyoursalespitchfrombeginningtoend.

wPuttheheadlinewhereyourreaderwillfinditfirst, usually at the top of the page (or rightunderneathyourillustration).wYourfirstparagraphshouldbeshort,notmore

than15words.Anymoreandyoumayscareoff yourreader.wIf youuselongcopy(see “TheSecondCom-

mandment,”Chapter6),uselotsof bulletpointstobreakuptheparagraphsandincreasereaderinterest.w For really long copy, insert illustrations now

andthen.wEveryfourorfiveparagraphs,useasubheadto

buildinterest.Sometimes,alazyreaderwillread

9� Naked Marketing

onlyyoursubheads,sousethemtodeliverthesubstanceof yourentiresalespitch.wKeepcolumnsnarrow,thewaynewspapersand

magazinesdo.wNever setyourcopy in reverse (white typeon

blackbackground).Itmakesitharderto read,anditwillthereforebeignored.wUselowercase,likenewspapersandmagazines.ALL

CAPITALLETTERSAREMUCHHARDERTOREAD.

wIf youareusingacoupon,putitsmackinthemiddleof youradtomaximizereturns.

Mostof usgrewupreadingtextbooks,newspa-persandmagazines.Webecameaccustomedtothestyleusedbythemandfindthatstyleeasiertoread.Emulatethem.Useserif type,narrowcolumns,andupperandlowercaseletters.Makeyouradseasyforyourcustomerstoread.

BillboardsAfewbrief wordsaboutbillboards:Ihate‘em. Billboardsclutterupthehighwaysandruinwhatmightotherwisebeabeautifulbucolicsettingalongruralroutes.Nevertheless,theyareubiquitous,andyoumayhaveoccasiontousethem.Soheregoes. Alloutdooradvertisinghasonethingincom-mon:yourreadersaremoving.Theycan’tstopforasecondlook.Apassingdriverhasjustfivesecondstoreadyourad.Fiveseconds.Youhavetimeforjustonesimpleidea.Boththewordsandpicturesmustconveyyourproductbenefitsimply,directly,andfast.

—Bebrief—Usesans-serif type,aslargeaspossible(the

exceptiontothe“emulate-newspapers-and-maga-zines” rule; here, you want to emulate highwaysignage)

—Usebrightcolors—Useawhitebackground

9• Layout and Design 9�

Followthesefewguidelinesandyoumaynotwinanyclassicartawards,butyouwillproduceeffectivebillboards.

10 How to Make the

Most of Media

Now that you’ve honed your copywrit-ing skillsandmasteredtheartof layoutanddesign,you’rereadytodelveintothe

mysteriouspowerof media,thebuyingandsellingof timeandspace.Actually,it’snotallthatmysteri-ous.Butitispowerful. Considerforamomentwhatanembarrassmentitwouldbeforyoursalesmantowalkintotheofficeof anewprospectandsay,“Hi,I’mJoeDokes,”onlytohavethebuyersay,“Joewho?”Butconsiderhowmuchworseitwouldbetohaveyoursalesmantrytorecoverbysaying,“Youknow,JoeDokesfromtheTimeTestedTombstoneCompany,”onlytobemetwith,“TimeTestedwhat?”

Yoursalesman is in trouble.Butyou’re inbig-ger trouble.Your prospect didn’t recognize yourcompany’snamebecauseyoudon’tadvertise.Sure,youmayhavesenthimamailingortwo.Orevenintroducedhimtoyourfirmatatradeshow.Butthatwaslastyear,orlastmonth,orevenlastweek.If youdon’tkeepyournamearoundconstantly,it’sforgottenasquicklyaslastyear’sMissAmerica.

Media advertising makes your company namerecognizableandremembered.Itgivescredibilitytoyourproducts,andpavesthewayforyoursalesforce,oryourdirectmailings.

Mediaadvertisingconsistsof print(newspapersandmagazines),broadcast(radioandtelevision),out-of-home(billboards,buses,stadiums)andthenewestformof media:theWorldWideWeb.

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Newspaper AdvertisingNewspapersarethemostfrequentlyusedmediaforsmallbusinesses.Theyofferawidevarietyof costoptions,dependingonthesizeof yourad.Andtheyofferahighdegreeof flexibility,allowingchangesuptoafewdaysbeforetheadistorun.Thisisadefinite advantage when you want quick results.Whilemagazine adsmay seemmore glamorous,magazinesrequirelongleadtimes.Whenyoucommittothepublication,itmaybemonthsbeforeyouradappearsinprint. So,let’ssayyouhaveoptedtoplaceanadinanewspaper.Nowyouneedtoaskyourself whetheryou’ve found themost suitable setting. In short,will the paper you have selected reach the mostprospectivecustomersfortheleastcost. Agoodwaytofindoutwhichpaperworksbestistorunalittletest.Putthesameadwithacouponinseveralnewspapers.Putadifferentnumberonthecoupons ineachnewspaper’sadsowhenthecouponsareredeemed,youcancountthenumberof redemptionsfromeachpaperanddividebythecostof thead.Youwillsoonseewhichnewspapersworkbestforyourbusiness. Whentesting,don’tlimityourchoiceof newspa-perstothosewhichyoureadoryourspousereadsortheonewhosesupersalesrepissittingatyourdesk. Thechoicesaremany:

—nationalnewspapers,—metropolitannewspapers,—weeklysuburbannewspapers,—shoppersclassifieds,—campusnewspapers,—ethnicnewspapers,—alternative/undergroundnewspapers,—dailies,weeklies,monthlies,etc.

10• Make the Most of Media 99

Thepaperyoueventuallyselectwillbetheoneinwhichyoushouldadvertiseconsistently.Itistheonetowhichyouwillcommitthebulkof yourads,yourmoney,andyourhopes.Sochoosewisely.Makesureitprovesitself inthecoupontest.

Magazine AdvertisingMagazinescanbeanefficientmeansof targetingyouraudience.Therearemagazinescoveringvirtu-allyeverymarketyouorIcanthinkof.Magazinesfor gourmets, chess players, and doll house col-lectors. Magazines for short people, tall people,eventwins. Thebeautyof magazinesisthattheyarebettersuited to lengthy copy than any other medium.That’sbecausepeoplebuymagazinesinordertospendtimewiththem,unlikenewspapers,whicharereadforthenewsanddiscarded.Magazinesengagetheirreaders.Andyourmagazineadsmaydothesame. Printadvertisementsmaybebestforexplaininga lengthyproductmessage.Charts anddiagramscanbeusedtodemonstrateproductperformanceover time.Or tomake competitive comparisons.Butnewspapersandmagazinesarepassivemedia.Advertising in them assumes the reader has aninherentinterestinyourproduct.Thereaderswillfrequentlypassbyanadif hedoesn’tknowheneedsyourproduct.

Forthat,youneedmoreintrusivemedia:radioortelevision.

Radio AdvertisingRadiooffersaricharenaforthecreativemind.

Theearcanbetrickedintobelievingtherereallyisaship(SFX:foghorn)fullof people(SFX:crowdnoise)abouttocrashontotherocks(SFX:crashingwaves)andsinkintheshark-infestedwaters(Music:“Jaws”theme).UnlesslittleJohnny(Boy:“Seeyalater,Mom”)cansignaltheship’scaptain(SFX:fog

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horn)usinghistrustyflashlight(music:buildtocrescendo)withtheZappumlong-lifebatteries,andsavetheday(Man:“Thanks,Johnny.Yousavedus.”Boy:“Don’tthankme.ThankmyZappumlong-lifebatteries.”Music:out).

Radiocanbetargetedataspecificaudience.Eachradiostationappealstoaveryselectgroupof listen-ers.Andratingscompaniesmonitorexactlywhoislisteningwhen.Soyoucanpickyourstationbasedonhowcloselyitmatchesyourtargetcustomers.

Butradiohasitslimitations,too.Mostpeopledon’t “listen” to radio; they simply “hear” it. Itservesasbackgroundnoisewhiletheywork,orwhiletheydrive.Sounlessyourradiospotisextremelyunique,andcangrabthe“hearers”andmakethem“listeners,”useradiocautiously.

Television AdvertisingThemostintrusivemediumistelevision.Youwatchaprogram,andsuddenlytheprogramisinterruptedbyacommercial.So,youwatchit,too.Oh,sure.Thereare“zappers”outtherewhohavediscoveredthepowerof theremotecontrol,whohavelearnedto“zap”pastcommercials,switchingchannels,hold-ingtheplotsof threeAmericanMovieClassicsintheirheadsatthesametime.Ortryingnottomissonepreciousmomentof thedwarf whoisjugglingdaschundsonchannel61.Ortheexcitinglive-actiondaffodil-growingcontestonchannel82. Butthefactremains,TVintrudesonourliveseverymoment it is turnedon. It offers the bestopportunitytocreateawarenessforyourproductorserviceinthemindsof yourcustomers. Thecostof televisionadvertisingisnotfortheweak hearted. For example, the average cost of producing a 30-second television spot today is$370,000.Gulp.Takeadeepbreath.You’reprobablythinking,“Ican’tafforda1-secondspot,letalonea30-secondspot.”Butthatpricetagisdeceiving.That $370,000 average includes all those high-

10• Make the Most of Media 101

pricedbeerandsoftdrinkcommercialsfeaturingmultiplescenes(eachonemustbedirectedandshotindividually),shotonlocation(travelandlodgingareextra),withacastof many(eachmodelmustbepaid;celebritiesoftenreceivehugeamounts). YourTVspotcanbemuchmorebasic,andlesscostly.Asimplemessagewithnoon-cameraactorscanoftenbeproducedforafewthousanddollars.Effectivelywritten,yourTVadcanbeverybeneficialtoyourmarketingefforts. If youdecide touse thispowerfulmediumtocarryyourmessage,herearethreesimpleguidelinestohelpyoumaximizeyoureffectivenessandavoidwastingalotof money.1. What you show is more important than what

you say. Television is a visualmedium.Research

has shown that if you say something whichyoudon’talsoillustrate,theviewerimmediatelyforgetsit.Makeyourpicturestellthestory;theonlypurposeof thewordsistoreinforcewhatisshown.Inshort,if youaren’tgoingtoshowit,don’tsayit.Here’sausefultest:tryturningoff thesoundonyourTVspot.If itdoesn’tsellwithoutthesound,you’reintrouble.

2. Don’t try to do too much with your 30 sec-onds.

Use only 75 words or less. More thanthatmakesithardtocomprehendyourmessage.Makeonlyone(oratmost,two)sellingpoints:(“Schmoozeisgentletoyourhands.Andnowit’savailableatDokesDepartmentstores.”)Toomanysellingpointsinoneadconfusetheviewer.

3. Use your product’s name at least three times in the 30 seconds.

Theaverageconsumerseesover1,000com-mercialsamonth.If youwanthertoremember

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yourproduct,showherboththeproduct(inthepackageyouwanthertolookfor)andtheproductbenefit.Repeatyourmajorsellingpromiseatleasttwice;illustrateitvisually;showitasasuperorsub-titleonthescreen.Remember,yourprimaryobjectiveisnottoentertain.Itistomakesureyourviewerremembersyourproductnexttimeshedecidestomakeapurchase.

Oneotherpoint:if youplanonusingtelevisionasapartof yourmarketingmix,retainamediabuyingservice.Theyusuallychargeabout6%of thecostof yourmediapurchase,butthey’llsaveyoualotmorethan6%.YoumaythinkyoucannegotiateagooddealwiththelocalTVstation,butmediabuying servicesbuymillionsof dollars inmediaeverymonthandhavefarmorebuyingpowerthanyoursmallbusiness.

Cable TelevisionCableTVisusuallymoreaffordablethannetworktelevision.Thenumerousshowsoncabletoday,likemagazines,makecableanefficientmeansof targetingyouraudience.Youcanpinpointyourtargetmarketbybuyingadsononlythoseshowswhichappealtothem.Cableeliminatesalotof waste. Forinstance,let’ssayyouselllumberandbuildingsupplies.YoucouldbuyexpensivespotsonnetworkTVshows,likesportsandmovies,whichappealtoyourtarget.OryoucouldbuyfarlessexpensivecablespotsHGTV,theHome&GardeningNetwork.If youneedtelevisiontotellyourproduct’sstory,cableisoftenthemostefficientuseof yourlimitedmarketingbudget.

Out-Of-Home AdvertisingThesearealternative,non-measured,non-traditionalmedia. Everything from signs on park benchestoposters inpublic lavatories.Youcanevenfindadvertisementsat thebottomof the18cupson

10• Make the Most of Media 103

agolf course.Smackina30-footputt.Reachforyourball.“EnjoyPepsi.” Billboards, transit advertising, sports stadiumsignage,andairplanetrailersrepresentalittleovertwopercentof allmediaspending,andgrowing.Out-of-Homemedia can target yourmarketde-mographically(e.g.transitadsareseenmostlyinurbanareas,stadiumadsareseenmostlyby18-to49-year-oldmales)orpsychographically(e.g.golfersrelishingthat30-footputt).Theyhaverelativelylowcostandcanbehighlycreative. Onthedownside,youcan’tusealotof copyonabillboard,airplanetrailer,oratthebottomof agolf cup.Therecanbeagreatdealof wastedcoverage.Themessagetendstowearthin(commuterspassyourbillboardfivetimesaweek).Andimagecanbeaproblemwhenyouradappearsonparkbenchesorlavatorywalls.

Reach vs. FrequencyAllmediaworksonthebasisof “reach”and“fre-quency.”Reachisthepercentageof peoplethatsee(orhear)youradvertisement.Frequencyistheaver-agenumberof timestheyseeit.ReachismeasuredinGrossRatingPoints(GRP’s).Onegrossratingpointisonepercentof theviewing(orlistening,inthecaseof radio)public.If thereare100,000TVsetsinyourcity,oneGRPis1,000TV’s. Agoodruleof thumb:tocreateanimpressionamongTVviewers,youneedtodeliveraminimumof 150GRP’spermonthforatleastthreemonths.Tointroduceanewproduct,figure500GRP’samonthforatleastthefirstthreemonthsand150GRP’spermonthforthethreemonthsafterthat. Reach creates awareness. Frequency sells.Thesubliminaleffectof seeinganadvertisementrepeatedlycreatescredibility,connectingthatcom-panytothatclassof productinthecustomer’smind.So,justbecauseyou’retiredof seeingthesameadsforyourproductsdoesn’tmeanyourcustomersare.

10� Naked Marketing

Theyhaven’tseenthemasoftenasyouhave.Don’tbeafraidtorunyouradsoverandoveragain.Andthen,whenyou’resotiredof themyoucouldscream,runthemagain.

Ittookmillionstodeveloptheassociationbe-tween“Kleenex”andtissues,“Xerox”andcopies.But that sort of status can be achieved by yourbusinessthroughconstantrepetition.Repetitionisimportantthroughoutallyourmarketingefforts.Usethesametheme,tagline,eventhesamewordsif possible in yourTV advertising, your printsads,mailings,attradeshows,perhapsevenonyourcompanyletterhead. Repetition helps your prospects remember. If you place a big ad in a newspaper or magazine,getreprints.Mailthemtoallyourcustomersandpotentialcustomers.Enlargethemanddisplaytheminyourboothat trade shows.Hang themup inyourplaceof business.Featuretheminyourdirectmailings.

Repeatyourmessageinyourdirectmailings.Byitself, your brochure or company literature maylack the impact of media advertising. But whentheyfeatureanadthatyourcustomershaveseeninthemedia,itfurtherenhancesyourcompany’scredibilityandaddstothatall-importantfrequency.Themoreoftenyourcustomersseeyourads,thebettertheadssell.

Target Rating Points

While Gross Rating Points (GRP’s) are apercent of the total viewing audience, TargetRating Points (TRP’s) are a percent of yourtarget audience. If your product is only boughtby women, your TRP’s are measured as apercent of women watching your commercial.Always use TRP’s when judging the efficiencyof your media.

10• Make the Most of Media 10�

Themediaadvertisingcreatesawareness,buildsyourimageinthemindsof yourcustomers.Ites-tablishesyourpositioninthemarket.Sowhenyourdirectmailinghitstheirdesk,theyrecognizeyourname,readyourmailing,andrespond.Andwhenyoursalesmancallsonanewprospect,theprospectmaynotknowhisname,buthe’llknowyours.Flighting and Front LoadingYoucanstretchyourmediabudgetbyFlighting.Flightingmeansstaggeringyouruseof media.Forexample,let’ssayyoucanafford50GRP’saweekfortwelveweeks(atotalof 600GRP’s).Ratherthan run50GRP’seachweek, consider running100everyotherweek.You’llachievemoreimpactbycreatingtheillusionyou’rearoundallthetime.Viewerswon’tknowyou’renotontheairduringtheoff week.They’llassumetheysimplyweren’twatchingwhenyouradswererunning.Hereishowflightinglooksingraphform. AnothereffectivemediabuyingmaneuveriscalledFrontLoading,thatis,heavilysaturatingyouraudi-encewithyourmessageinthefirstfewweeksof yourcampaignandthentaperingoff. For example, using that same 600 GRP’s, tryrunning100GRP’sduringthefirstfewweeksand25duringeachof thenexteightweeks.

Flighting

150125100755025

week # 1 2 3 4 5 6 7 8 9 10 11 12 13

50 GRPs per week or 100 GRPs every other week

10� Naked Marketing

Hereishowfrontloadinglooksonagraph.

Acombinationof flightingandfrontloadingisshowninthefollowingexample:

Multiple ImpressionsBycombiningavarietyof media—newspaperads,radio spots, direct mailings—you can increaseawareness of all your advertising and maximizeyour efforts. If a prospect hears your adon theradio,readsyouradvertisementinthenewspaper,andseesyouradinatrademagazine,he’llbemoreapttoreadyourbrochurewhenitlandsonhisdesk.He’llalsobemoreapttocallyouoveracompetitorwhenit’stimetobuy. Themoreoftenyourcustomersseeyourads,andthemorediversifiedtheirexposuretoyournameandproductbenefit,themoreapttheyaretopurchase.Large companies simultaneously runsTV spots,newspaper ads, and radio spots, mail brochures,dealerletters,andproductannouncements,andgetwidecoveragefortheirproductsintrademagazinesandlocalnewspapers.

Front Loading150125100755025

week # 1 2 3 4 5 6 7 8 9 10 11 12

Flighting and Front Loading

150125100755025

week # 1 2 3 4 5 6 7 8 9 10 11 12 13

10• Make the Most of Media 10�

Soif you’recontemplatinganadcampaign,makeitworkharderforyoubyspreadingitacrossseveralmedia.

The World Wide WebBusinessWeekcallsit“ThemostimportantinventionsinceVelcro.”Butit’sbiggerthanthat.It’sbiggerthan SaranWrap. Bigger than Band-Aids. MoreimportanteventhanMadonna.It’stheWorldWideWeb.Andit’sthewaytheworldcommunicatesinthe21stCentury. Thinkof it.YourcomputerisyourCommunica-tionsCenter.Yourtelephone,yourCDplayer,yourmailbox(email),filingcabinet,library,evenyourTV.Everythingisavailableonyourcomputerscreen.Allcomingtoyouthroughcyberspace. TheInternetallowseveryformof Promotion:Advertising,Publicity,DirectMarketing,PersonalSellingandSalesPromotion.Allatthepushof afewbuttons.BusinesseshavebeenquicktorecognizetheWeb’spotential.It’stheabilityto“talk”ontheInternetwithfriends,family,and,mostimportantly,customersthathasgiventheWorldWideWebitsexplosive growth.The sheer excitement of real-timeinteractionwithprospectsandcustomershascausedarushtotheWebunseensincethedaysof theKlondike. TheWebisawholenewcommunicationsmedium.Anewwaytoreachyourcustomers.Imagineforamomentthatyourfirm’sproductorserviceiswater.Televisionthenislikeahosesprayingacrowd,andyouhopesomewillenjoygettingwet.Directmailislikeasquirtgunaimedonlyatthosewhoyouthinkwanttogetwet.MarketingontheWebislikeapond.Prospectscanvisit,diveinasdeepastheywant,swimaslongastheylike.YourWebsiteisn’tsomethingpeopleread,itissomethingtheydo. It’s no wonder companies like Miller Brewing(http://www.millerbrewing.com), McDonald’s(http://www.mcdonalds.com),Motorola(http://

108 Naked Marketing

www.motorola.com),evenBob’sBed&Breakfast(http://www.bobsbedandbreakfast.com) are ontheWeb. Worldwide,thereareover60millionorganizationswithWebsites;mosthavemultipleusers.Currently,thereareoverabillionpeopleusingtheWeb,anincreaseof nearly8%permonth(that’s“month”)since1995. Likeatradeshow,theWebmaynotbringyouaslewof sales,butyouareconspicuousbyyourabsence. Herearetenreasonstogetyourcompany“WebLiterate.”

1. Increaseyourvisibility2. Givealeading-edgecorporateimage3. Distributeinformationaroundtheglobe4. Decreaseyourcommunicationscosts5. Expandyourmarket6. Developonlinecustomers7. Improveserviceforyourcurrentcustomers8. Updateproductinformationinstantly9. Real-timecommunications10. Yourcompetitorhasabettersite thanyours

Somewhereinyourfirmthereisinformationthatisvaluable topeople tryingtobuyproductsyousell.TheWeb lets youoffer that information totheworldwithunprecedentedspeedandflexibility.Updatepricechangesdaily.Updateproductdatasheetsinstantly.Sendblueprintsandproductspecsheets.Addnewproductstoyourcatalog.Deleteoldones. If that isn’tenoughto lureyou inforacloserlook,theWebalsohasmultimediacapabilities.Text,graphics,videoandsound.Userscanreadaboutyour product, see a photograph of it in variouscolors,andhearyoutalkaboutit.Theycanevenwatchvideoclipsof yourproductinaction.

10• Make the Most of Media 109

CyberspaceistheNewAgemarketingmediumthat offersmore thanOldWorld options. So itrequiresnewthinking,newstrategies,andanewapproach.Whenyouhaveonly30secondstodeliveryourmessageonTVorradio,orcanonlyaffordtoruna1/4-pageadinthenewspaperormagazine,someinformationmustbesacrificed.Brochuresandcatalogscanpresentlongermessages,butthesetoohavelimitationsof spaceandcost.What’smore,noneof thesemarketingtacticsofferyourprospectachancetointeractwithyourcompany. YourWebsitedoes.Prospectivecustomerstapintoyourorganizationandtaketheinformationtheywant,whentheywantit.Theyeducatethemselves.YourWebsiteprovidesinstantdeliveryof promo-tionalmaterialstoaworldwidelistof self-selectedprospectsatafractionof thecostof asalescall. WhileyourWebsitecanneverreplacetheface-to-face benefits of personal selling, it can serveasasupplementtoyoursalesforce,reachingnewcustomers, expanding your sales potential, mak-ingyourcompany’sproductsavailablearoundtheworld.Think of the man-hours you can save insalestraining,traveltime,andsupervision.Neversitinyourprospect’swaitingroomagain.Neverbecaughtwithoutthelatestcatalogorpricelist.It’sallonyourWebsite. YourWeb site may have multiple uses, whichtypicallyfallintothreecategories:

INFORMATION ENTERTAINMENT REVENUE

CompanyProfile Games Gifts&Gear

EmploymentOpportunities Contests/Sweepstakes EventSponsorships

Products Trivia ProductCatalog

CharitableWorks VirtualTour

Feedback

INFORMATION is why people come to yoursite.ENTERTAINMENTiswhytheycomeback.REVENUEisrevenue.

110 Naked Marketing

ThebestWebsiteissimpleandstraightforward.Designiscrucial.Justasyoursalesstaff isthefaceyourclientsknowof yourcompany,yourWebsitehasonlyonechancetomakeafirstimpression.YourWebsiteistheprospect’selectronicvisittoyourcompany.Think: IMAGE.What does the placelooklike?Isituserfriendly?Arebrowserstreatedasthoughtheyarewelcome?YourWebsiterequiresthesamecareincopywriting,graphicdesign,andattentiontodetailasyourbestadvertisingpiece,productcatalog,ortradeshowexhibit. Yourhomepage is thefirstpageof yourWebsite,thefirstoneauserwillsee.Makeiteasytoview,evenfortheslowestconnectors.Allyoureallyneedisyourcorporatelogo,yourmissionstatement,andafewsmallgraphiciconsthatlinktheusertovarious sites. One link could send a prospectivecustomertoyourproductcatalog;anothermightofferserviceandsupport;stillanothermightallowuserstosendemailbacktoyourcompany. Once a user has found your catalog, he candownload information on specific products, orpurchaserightthen.Visitorscanrequestliterature,orderproduct, enteryour trivia contest,orfile acomplaint. If literature is requested, you have acontactname,addressandphonenumber.Youcanaddthesetoyourmailinglist. KeepyourwholeWebsitefriendly,functional,andfun.Friendly,becauseithastobeeasytouse,evenforcomputernoviceswiththeslowestequip-ment.Functional,sothereisaclearbenefittouserswhentheygetthere.Andfun,becausethat’swhattheWorldWideWebisallabout.

11

Using Publicity to Stretch Your

Marketing Budget

Here’s how to use publicity when youneed your name in the paper but youdon’twanttopayforit.

Aswe saw in the prior chapter,media can beexpensive.Publicityontheotherhandcanbecostfree. It also has another advantage. Because it ispresentedinthepressasastory,ithasmorecred-ibilitywithreadersthanpaidadvertising.

RemembertheoldHollywoodadage:Itdoesn’tmatter what they say about you so long as theyspell your name right?Well, that may be greatformoviestars,butyourcompanyneedspositivepublicity.Hereareafewhintstohelpyourfirmmaximizeitsmarketingdollarandbuildapositivepublicimage.

Editors andcolumnistsdependupon industryto keep them informed of changing technologyandthelatestinnovations.Youcanprovideavitalservicebysubmittingthatinformationintheformof a press release. Don’t be afraid to attempt ityourself,buttrytomakelifeeasyforyoureditor.Summarizetheimportantpointswithaheadline.Putallthesalientpoints(who,what,where,why,when)upfront,inthefirstparagraph.Thelesstheeditorhas toedit, thegreater thechancehewilluseyourmaterial.

Always put “For Immediate Release” or “ForRelease(andthedatethestorywillbecurrent)”atthetopof thefirstpage.Besuretoincludeyournameandtelephonenumberatthebeginningof

112 Naked Marketing

therelease.Theeditormaywanttocheckcertaindetails foraccuracy.Orshemaywant toexpandonyourstory.

Accordingtoresearch,astorywithapictureisreadabouteighttimesmoreoftenthanonewithout.So,sendalongablackandwhitephotograph(5”x7”isbest)withthepressrelease.Hint:whenquotingapersonmentionedbyname,always include theperson’sage. Because theeditor “depends”uponthatnews,it must be accurate. And it must not smack of advertising.Leaveoutyourcompany’sadvertisingadjectivesorendorsements.Skipthesuperlatives;theywon’tprintthemanywayandtheycanprejudiceaneditoragainstyou.Theeditorknowsyourpressreleasehasbeenpreparedtobenefityourcompany,butitalsomustbenefithisreaders.WHAT SHOULD BE PUBLICIZED?If you have something of interest happening atyourcompany,sendyour industrytrade journalsapressrelease.

The new productMosttradejournalshaveanewproducts/servicessection.Itprovides informationthatmaybe im-portanttothereaders.If youhaveanewmachinethatvastlyimprovesthequalityordeliverytimeof yourproducts,youactuallyprovideavitalserviceby submitting that information to your tradejournaleditorssotheyinturncanpublishitfortheirreaders.The grand openingThenewadditionorremodelingalsomakesforgoodpublicity.Anytimeyouexpandquarters,sendoutapressrelease.Mentionthegreaterconvenience,ad-ditionalelbowroom,howitwillbenefitthereadersof thearticle,yourpotentialcustomers.

11• Publicity TO Stretch Budget 113

The new employeeAddinganewpersonwarrantsapressrelease.Anewexecutive’sfirstresponsibilityshouldbetosubmitabrief autobiographyandpicture(gooditemstohaveintheemployeefilesanyway).Theycanserveasthebasisforapressrelease.Thereleaseshouldincludewhosheis,whatshewillbedoing,whatsheisexpectedtoaccomplish(here’swhereyouslipinthecommercialaboutspecificareasof expertise),anddetailsabouthereducation,experience,associations,andfamily.Somepublicationshavespecialsectionsfornewfaces.Theyareusuallywidelyread.The new customerWhenyou sign abignewaccount, send apressrelease(withtheaccount’spermission,of course).Leteveryoneknow.It’sonemoreopportunitytoputyournamebeforethepublic.Italsogivesyoucredibilityinyourindustry.Peopleinrelatedbusi-nesseswillthinkthatyoumustbeexpertsinthatfield,orelseHarryatXYZCompanywouldn’tbebuyingfromyou.When nothing else is happening, make news The industry “prediction” is always good. Forexample, “Joe Dokes, President of Okey DokeComputerSupplies,predictsthefaxmachinewillgothewayof thedodobirdbytheyear2000.‘Theworldwillcommunicateviaemail,’saidDokes.‘TheInternetisthewaveof thefuture.It’sfaster,cheaper,andmoreaccurate...’etc.etc.”

Thesecretof thistechniqueistomakeastate-mentthatisintriguing,maybeevenfantastic,butneverunbelievable.Youendowthequotedpersonwithinstantexpertise.Hehasmadeapublicizedprediction; he must therefore be a revered seer.Everyonewantstoworkwithacompanyheadedbysucharenownedandrespectedsage.

11� Naked Marketing

Anotherdeviceyoucanusetobreakintothemediaisastatementabouttheconditionof theeconomy:it’sgood,butitcouldgetworse;it’sbad,butitwillgetbetter.Backitupwithafewaccuratestatisticsandtheimplicationstoyourindustry,andyouhaveyourself aninterestingnewsrelease.

Choosing A Public Relations Agency

There isagreatdealof publicityyourcompanycangenerateon itsown.However, the timemaycomewhenyouneedexpertadvice.Youmayhavea problem at your company that needs delicatehandlinginthepress.Oryoumayhaveaneedforamajorarticleorseriesof articlesonyourcompanytobolsteryourprestigeintheindustry.

Apublicistorpublicrelationsspecialistmaybenecessary.If so,chooseonesmallenoughtopayyourcompanytheattentionitrequires.Avoidtherevolving-dooragencies,longonpromisesbutshortondelivery,whereaccountscomeandgo.Usually,theysendintheirbiggunstosecuretheaccount,thenturnyouovertoanitinerantjuniorlookingtobuildhisresume,orworse,arankneophyte.

Foryoursmallbusiness,yourbestbetisasmallshopwheretheprincipalswillgiveyoutheirexpertisebecauseyouraccountisimportant.Yourpublicistshouldhavewell-developedrelationswiththepressandatrackrecordof achievementinyourspecificareaof need.Agoodpublicistshouldknowmanyeditorsonafirst-namebasis.

Onegoodwaytochooseapublicrelationsfirmistocallafewlocaljournalists,editors,orcolumnists.Tell themabout your company and itspublicityneeds.Askthemwhotheyrespect,whotheyliketoworkwith.

Newspapers and magazines receive hundreds,sometimes thousands of submissions every day.Someeditorshavepilesof submissionsseveralfeethighawaitingtheirperusal.Andonly35%to40%

11• Publicity TO Stretch Budget 11�

of theaveragedailynewspaperiseditorial.Therestisadvertising.Sothecompetitionforspaceisintense.Agoodpublicistshouldbeabletogetyourstoryontopof thepile.

Remember,publicitygivesyoulesscontrolthanadvertising.Thereisnoguaranteewhenorevenif yourarticlewillrun.Yourpublicistmayworkforweeks,evenmonthspreparingapiece,andputtingitbeforethepropermagazineandnewspaperedi-tors.But,reasonsbeyondhercontrolmaypreventyourstoryfromappearingwithinthetimeframeyoudesire.

Bepatient.It’sworththewait.Becauseof itscred-ibility,editorialpublicityisgenerallyconsideredtobeworthmorethantentimesthesameamountof spaceinpaidadvertising.Andit’saneffectivewaytostretchyourmarketingbudget.

Be A Good NeighborDonateyourproductorservicetoaworthycause.Neighborly?Yes,but it’salsogoodbusiness.Thecharitymaymentionyourcompanyinitsliterature.And,withalittlesavvypublicrelations,youmaycreateanimageassociatingyourfirmwithworthyendeavors.

Aclientof mineownsalocaldrycleaningchain.Hefacedanewcompetitoracrossthestreetfromoneof hisstores.Aspartof ourmarketingeffortstocheckthisthreat,wecreatedascholarshipfundatthelocalhighschool,a$500.00goodcitizenshipaward.Itservesasaremindertothecommunitythatmyclienthasbeentheirneighborhooddrycleanerfor many years. It also creates awareness of thefirmamonghighschoolstudents,aprimesourceof employeesforthisservicebusiness.

Considerdonatingproductsorservicestoyourlocalpublic television station.Yougainvisibilityamongviewers(therearemanyavidTVAuctionwatchers),andyoumaypickupnewcustomersfromthosewhosampleyourproduct.

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Review the charitable organizations in yourcommunitythatattractpeoplewhofityourtargetcustomerprofile.If theynoticeyourfirmdonatingtimeorservices,theymaybecomeyourcustomers.Bestof all,youchampionanadmirablecrusade.

Andyoumaygettoknowsomenicepeople.

12

Introducing A New Product

Every company needs new products inorder to grow. Both industrial customersandconsumersexpectastreamof newand

improved products to suit their changing needsandwants. Yourcompetitorsarecertainlydoingtheirbesttomeettheseexpectations.If youdon’ttoo,youmaybeleftbehind.Inasense,itbecomesincreasinglyriskyforyouNOTtointroducenewproducts. There are three compelling reasons why yourcompanyneedsnewproducts:

1.Yourcurrentlinewillbecomeobsolete(soonerthanyouthink)

2.Yourcustomerswanttoworkwithcompaniesthatusecutting-edgetechnology,thosethathavethenewestandgreatestproductstooffer

3.Yourcompetitorsareintroducingnewproductsthatwillreplaceyours

The Product Life Cycle

Everyproductcategoryhasalifecycle.Thisisafour-stage process in which products are intro-duced,growinacceptance,reachmaturity inthemarketplace,andfinallydeclineastheyarereplacedbyalternatives.TheIntroductory Stageischaracterizedbyslow

growth and little or no profits.There are noeconomiesof scale.Thecompanyspendsagreatdealof timeandmoneytestingtheproduct,work-

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ingoutanykinksinmanufacturing,distribution,andpromotion.

TheGrowth Stageischaracterizedbyrapidgrowthinsalesasthemarketexpands.Cashflowincreasesandsomeeconomiesof scalearerealized.Thecompanybeginstoshowaprofit.

TheMaturity Stageischaracterizedbyfullecono-miesof scale.Thecompanyenjoyspeaksalesandprofits,butbeginstoattractcompetition.Somepricecutsbeginandmarginsthin.

TheDecline Stage is characterizedby increasedcompetition.Softeningsalesandoverproductioncausewarehousestofillup.Profitsdeclineduetofurtherdiscounting.

Rememberthefaxmachine?Duringitsheydayin the1980’s, the faxmachinewas awonderof technology.Goodonessoldfor$400to$500.Forthe first time, companies could send documentsacrossthecountry,aroundtheworld,inthetimeittakestomakeatelephonecall.Contractscouldbeexecuted(withafaxsignature),blueprintsexchanged,meetingsavoided.Itwasatechnologicalmarvel.

The Product Life Cycle

Sales

Profit

Intro Growth Maturity Decline

Chief reason for PLC = change in technology

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Justtwentyyears later,manyofficesdon’tevenhaveafaxmachineanymore.Youcanpickoneupatdiscountstoresforunder$100(includescopymachine capabilities).What caused such a rapiddemise?Technology!Betweendigitalscannersandemail,thefaxisobsolete.

Innovate or PerishAtthesametime,innovationcanberiskybusiness.ThinkaboutFord’sill-fatedEdsel,DuPont’sCorfam(syntheticleather),orXerox’sventureintocomput-ers.Makersof theFrenchConcordeaircraftneverrecoveredtheirinvestment. Statisticsindicatemorethan10,000newproductsareintroducedeveryyear.Amajorityfailinthefirstyear;morethan80%inthefirstthree. Despite therisks, introducingnewproducts isextremely important. It sets the pace for futurecompanygrowthanditcreatestheimpressionamongyourcustomersandprospectsthatyourcompanyisinnovativeandcreative. If notintroducedproperly,however,anewproductmaybreakthebackof yourcompany’sprofitpicture.Evenif yournewproductisahugesuccess,yourcompetitorsmaybequicktoimitateit. Rivalscopysomenewproductssoquickly,thattheracetobefirstonthemarketmaytakeongro-tesqueproportions.Severalyearsago,thefolksatAlberto-Culvergotwindof anewshampoobeingtestedbyProcter&Gamble.TheyweresoeagertobeatP&GtothemarketwiththeirownversionthattheycreatedaproductnameandfilmedTVcom-mercialsbeforetheyhadevenfinisheddevelopingtheproduct. Youfaceadilemma:youneedtogeneratenewproducts,yettheoddsagainstsuccessarehefty.Introducinganewproductorservicetoyourcus-tomersrequiresplanning,perseverance,andguts.Threekeystokeepinmindtohelpyouimproveyouroddsof success:

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ØTherightproductØTherighttimingØTherightpeople

The Right ProductIt’s trueyouonlygetonechance tomakeafirstimpression. Don’t blow it. Make sure your newproductorserviceisthebestitcanbebeforeyoufoistitonanunsuspectingpublic.Yourcustomers’attitudesthefirsttimetheyseeortryyourproductwillstaywiththemalongtime. Aclient,whoshallremainnameless,orderedupsomeimpactfuladvertisementsandaheavymediascheduleforanewcleaningproductthathadbeenrushedthroughtheresearchanddevelopmentprocesswithoutsufficienttesting. Theadsworked.Theproductflewoff theshelves.Andflewrightbacktothestoresaweeklaterforrefunds.Theproducthadseparatedintoagooeymessdisgustingtolookatandtotallyineffectiveasacleaner.Aminoradjustmentinthemixingprocesssolvedtheproblem,butbythenitwastoolate.Ourcredibilitywas lost.Customersneverbought theproductagainevenafterwefixedit.Theretailerswereangry,too.Theywerestuckprocessingalltherefunds. Properresearchandtestingintheprototypestageof developmentwillpaydividendsinthelongrun.Threekeysteps:

1.Theproductmustsatisfyaconsumerneed2.Theproductmustperformuptoorinexcessof

expectationsundernormaluseandconditions3.The product can be produced and sold at a

profit

Nomatterhowwell youconceive andexecuteamarketingstrategy,if yourproductisn’tperfect,it’lldie.Introduceapoorproductand,thebetteryour promotionplan, the faster it’s demise.The

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sooner your customers hear about and try yourproduct,thesoonertheydiscoverwhetheritmeetstheirneeds.If itdoesn’t,yourterrificpromotionplanwillcauseyourlousynewproducttofailthatmuchsooner.Nothingwilldestroyabadproductfasterthangoodpromotion.

The Right Timing Timingisimportant,too.Anynumberof externalfactorsmaydelayyourintroduction.If yournewproductisreplacinganoldone,youmaywishtoholdupshipmentsuntiltheoldproduct’sstockisdepleted.Itmaymakesensetodeferdistributionuntilafterthebigindustrytradeshow.Orif yourproductisseasonal,youmaywishtoholdoff untilthestartof thesellingseason. Whentheexternaltimingisright,makesurealltheinternalpiecesareinplacebeforelaunchingyournewproduct.Thatmeansyournewproductisreadyformarket(seeTheRightProduct,above).Italsomeansyoursalespeopleareready,yourdistribu-tionsystemisready,andyourmarketingprogramisready. Severalyearsago,aclientofferedanattractivegymbagfreewiththepurchaseof anew,butinexpen-sivepieceof exerciseequipment.Thebagsweretocontainliteraturepromotingother,moreexpensiveequipment.Weboughtheavyadvertisingscheduleswellinadvanceandorderedlotsof gymbags.Butbythestartof theevent,aSNAFUattheprinterleftuswithnosalesliteratureforthefirsttwoweeksof the30-daypromotion. Theattractiveoffersold lotsof thenew, low-margin equipment. Unfortunately, the companylostabundleonthebagsandcouldn’tmakeituponsalesof thehigherprofitequipmentbecauseof themissingliterature.

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The Right PeopleOutthereamongthebuyingpublicarepeoplewhobuy stuff simply because it’s new.They’re calledearlyadoptersandtheyarefascinatedbyanythingtheir friends andneighborshaven’theardof yet.Theybuythelatestshampoo,thehottestnewcar,the intriguing new gizmo with the cutting-edgetechnodoodad. Smartmarketerslovethem.Thesepioneersarethefirstwaveof consumersfornewproducts.Theycantellyouwhetheryourintroductionwillgenerateenoughrepeatpurchaserstomakeitinthiscompeti-tiveworld. Ontheothersideof thespectrum,youhavethelateadopters.Thesecautiousconsumersdon’tcottontostrangersanddon’ttrustanythingtheyhaven’theardof.Theywon’ttryyournewproductsimplybecauseitISanewproduct. Then there are those folks smack dab in themiddle.Theyrepresentabout80%of yourtargetmarket.Theywanttobuyyourproduct,butbeforetheydo,theyhavetobeconvincedit’sbetterthanwhattheyhavenow.Theyarewillingtolistentoyoursalespitchif it’sinteresting.Butithadbetterbepersuasive.Itbettertellthemwhyyourproductisgood,notjustthatitisnew. Targetyoursalespitchtothis80%.Skiptheearlyadopters;they’llbuyyourproductanyhowsimplybecauseit’snew.Andskipthelateadopters,too.Theymaycomearoundintime,onceyourproductisestablished.Aimsquarelyatthatmiddlemajority.Andgivethemsolidreasonstobuyyourproduct. First,tellthemwhynewisbetter.Inyourmar-ketingmaterials,usewordslikenew,introducing,hurry,howto,andannouncing(seeChapterSix).Expressenthusiasm,aspiritof excitementinallyourmarketingefforts.Showyourconfidenceinthenewproductorservice.Enthusiasmiscontagious;yourcustomerswillshareyourexcitementif yourreasonsclearlydefinewhyyournewproductisbetter.

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Then,runbigads.Lotsof them.Remember,noonehasheardof yournewproduct.Coordinatemultiplemediaefforts—radio,newspapers,pub-licity,brochures,telemarketing,theworks.Planonspendingabigchunkof yourmarketingbudgetnow,duringtheintroductoryperiod.Inundateyourtargetmarketwithyourmessage.Subsequentadvertisingwillbemoreeffectiveif youhavecreatedsufficientawarenessamongyourprospects. Legally,youhavesixmonthstoclaimyourproductisnew.Afterthat,bereadywithphasetwoof yournewproductintroduction.Inthisphase,yourmar-ketingeffortsshouldpointouthowwellacceptedtheproductis.Usetestimonialsfromyourpioneerusers,thoseearlyadopters.Showhowothersjustlikethoseinyourtargetmarketarealreadybenefitingfromyournewproduct.Maintainthemomentumof yourintroductionforaslongaspossible. Theintroductoryperiodisacriticaltimeinthesuccess of your new product or service. If yourproductisright,thetimingisright,andyoumarketittotherightpeople,yougreatlyreduceyourriskof failure.

13

Personal Selling

Sales are food. Sellingiswhatyoudotofeedyourcompany.Toacquireyourfood,youcaneitherhuntoryoucanfarm.Oneisfareasier,

andcheaper,thantheother.

Hunting vs. FarmingTohuntistoseeknewcustomers,toacquiretheminoneof twoways:sellingmoreproductstonewcustomersinyourmarket,orfindingnewusesforthesameproductinadifferentmarket. Eitherway is expensive.Tosellmoreproductstonewusersinyourmarket,youcantrytocon-vincenon-users(folksthatdon’tuseyourtypeof product)thattheyneedtouseyourproduct.Oryoucanspendlotsof moneyonadvertisingandpromotion to convince users of a competitiveproducttoabandonthecompetitorandbuyyourproductinstead.Marketerscallthisbuyingmarketshare.Preparetospendbigbucks.Why?Consum-ershaveinertia.Theyareoftenreluctanttochangetheirbuyingpatternsunlessfirmly convincedof thebenefitsof acompetingproduct.Itmaytakeunhealthyamountsof time,money,andpatiencetopersuadethemtobuyyours. Anothermethodof huntingnewcustomersistofindnewusesforyourproductinadifferentmarket.Thiscanbeevencostlier. For example, suppose your company makesgoosenecklampsforhomeandoffice.Younoticethattheyalsoworkwellasareadinglightonthepiano.Avirginmarket.Allsortsof opportunitiesfornewsales.Butholdon.Youwillneedtocreateawarenessinthisnewmarket.Afterall,nobody’s

12� Naked Marketing

heardof you.You’llneedanadvertisingandpro-motionprogramgearedtothepianomarket,withbrochures,catalogs,andasalesstaff tocallonallyournewcustomers. In short, hunting is costly. It means changingpeople’sdailyhabitsandcustoms. Youdo,however,haveanotheroption:reinforceexistingones.It’scalledfarming.Tofarmistogrowmore sales from your existing customers. Mucheasier.Muchcheaper.Statisticsshowthatthecostof sellingtonewcustomersismorethan12timesasexpensiveassellingtocurrentcustomers.Thinkaboutit.Twelvetimesmoreexpensive. Whenyoufarm,youdon’tneedtocreateawarenessandcredibilitywithyourcustomers.Theyalreadyknowyouandtrustyou.Cultivatethem.Sellmoreof yourproductsorservicestothem.Therearemanydifferent typesof farming.Oneverycommonone I call rotation farming,wherethecustomercomesbackperiodicallyforregularlyscheduledappointments. For instance, awomanwhoowns ahair salonhas many customers who stop in only when it’sconvenient.Whathappenswhentheyfindhershopbusyandcan’tbefitintoherschedule?If ithappenstoooften,theybegingoingelsewhere.Isuggestedshe reviewher appointment book and call everycustomer about four or five weeks after the lastappointmenttoscheduleanewone.Shedid,andbusinessincreasedover20%. Thesameworksforanybusiness.If youoperateagarage,scheduleperiodicoilchangeswithyourregularcustomers.They’llappreciatethereminder,andyourbusinesswillincrease. Florists can use rotation farming. One clientcontactedhisbestcustomersandaskedthemfortheirweddinganniversariesandspouse’sbirthday.Hekeepsthedatesonfileinhisdatabaseandreviewsthemperiodically.Then,shortlybeforeeachdate,

13• Personal Selling 12�

hecallsthemandsuggestsafloralarrangementfortheoccasion. Hereareafewotherfarmingideastohelpincreaseyouryield.Suggestive SellingEvernoticewhenyougointoafastfoodrestaurant,theyalwaysaskif youwantfrieswithyourorder?Likewise,whenyoubuyshoes,thesalespersonasksif youwouldalsolikepolish,orshoetrees?That’ssuggestiveselling.It’stheeasiestwaytobuildsales.Yourcustomerisalreadyinabuyingmood.Youaresimplysuggestingshespendalittleextratoenhancethequalityof herpurchase. Suggestivesellingaimstotriggeranadditionalpurchase.Inotherwords,if youhavealreadysold‘emonething,theytrustyouenoughtobuyfromyoualready,sosell‘emsomethingelseatthesametime,whiletheyareinthebuyingmood.

Makesuggestivesellinganintegralpartof yoursalesphilosophy.Rewardyoursalesforceforadd-onsales.Offerbonuscommissionsorprizesforreach-ingaccessorysalesgoals.Trymixingandmatchingproductsinyourcatalog.Showhowdifferentpartsworktogether:theshoesandhatthatgowiththedress,thedrillbitsthatworkbestinthenewpress,orthespecialoilthatmakesthatdrillpressoperatemoreefficiently.

Yourcustomersarehappytohavereceivedthisextraadvice.Theynowknowwhatmakestheitemtheyhavejustboughtworkbest.You’rehappybe-causeyouhavemaximizedyoursaleswiththeleastamountof cost.

Sell accessories If yousellheradesk,suggestamatchingchairorlamp.If hebuysyouraccountingservices,suggestfinancial planning options as well. If they wantamicrowave,sellthemacookbookandaservicewarranty,too.

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AcompanyIonceownedmanufactureduniformsforschoolsof nursing.Itwasatoughbusiness,withcheap offshore competitors and minimal profitmargins.Wherewemadeourbiggest returnwassellingthosesamestudentssweaters,stethoscopes,sphygmomanometers (blood pressure kits), andwatcheswithglow-in-the-darknumeralsandsweepsecondhands.Wepaidthebillswithuniforms,butwemadeourprofitfromaccessories.Trade upLastyear,Larryboughtastandarddoodadfromyou.Thisyear,sellhimthedeluxemodel.OnceLarrybecomesacquaintedwithyourproductorservice,it’seasiertosellhimonthebenefitsof thesameproductwithexpandedcapabilities,afewmorebells,acoupleof whistles,andamaintenanceagreement.Everyyear,yourindustrychanges,innovationsoccur,equipmentbecomesoutdated.Keepyourcurrentcustomersinformedof yourcompany’smarvelousnewinnovationstheyshouldn’tbewithout.Then,tradethemupnextyear.

Incentive sellingItworks.Freegifts,premiums,anddiscountsallserve as effective means of building more salesfromyourexistingcustomerbase.Tryofferingafreegiftwithanypurchaseover agivenamount.Large retailers of electronics and appliances usethismethodeffectively.Imagine,somehucksterinaloudplaidjacketisscreaming“Getabike,getabike,get abike!That’s right!” (Hucksters alwaysscreaminexclamationpoints!)“ComeondowntoAjaxAppliances andget a free ten-speedbicyclewithanymajorappliance!”It’samazinghowmanyof those no-name brand bikes you see pedalingalongonaSundayafternoon. DistinctiveCoca-Colaglassesneverfailtoattractbuyersatfastfoodrestaurants.Payinganextrafiftycents(costtorestaurant,about21centseach)fora

13• Personal Selling 129

collectorglassyoucantakehomeseemsarealbargain.Thinkabouthowyourbusinesscouldpackageitsproductwithasurewinnertoincreaseyoursales.

Special discounts Offerspecialdiscountsforlargerpurchases.Ioncesawafarmersellingeggsbythesideof theroad.Hersignsaid, “10%off anypurchaseof 13ormore.”Afterinquiring,Idiscoveredsheonlysoldhereggsbythedozen.Thepromotionwasasham,butIboughttwodozenanywayjustbecauseIlikedhersenseof humor,andhermarketingmoxie.Complete systemsThisistheageof convenience.Peoplewantaneasy“turnkey”operationbecauseof itsconvenience.If yourcustomerwantstobuildanewplant,hecanmakealltheseparatedecisionshimself,hirearchi-tects,engineers,contractors,legalstaff,andsoon.Orhecancallyoubecauseyouofferalltheseservicesinonecompletepackage.Evenif it’sbeyondyourexpertise,farmouttherelatedservices,butofferthecompletepackage. GEMedicalSystems,forinstance,sellsnotjustapieceof high-techhealthcarehardware,butawholesetof accompanyingservices,includinginstruction,cannedsoftwareprograms,customprogrammingservices, financing, delivery arrangements, andmaintenanceandrepairprograms.Savvy companies recognize that this holistic ap-proachisagreatwaytogrowmorebusiness.

The last wordTohunt,or to farm.Your companyneedsboth.Huntingreplacesthosecustomerswhodecidetochangesuppliers,gooutof business,orsimplymoveaway.Soyouwillalwaysneedtohunt.Butfarmingisstilleasier,cheaper,andmoreeffectiveforgrowingyoursalesandprofitability.

130 Naked Marketing

Whether hunting or farming, it’s up to yourpeopletomakeyoursalesquotas.Youremployeesanswerthetelephoneandtakeacustomer’sorder.Theyventureouttocalloncustomers.Ortheytakethecashatthecashregister.

That All-Important Sales Force

Howdoyoumaximizetheeffectivenessof yoursalesstaff ?Howdoyougetthempassionateaboutyourproducts?Whatgreatelixircanyoufeedthemtogetthemtochargeoutoncoldmorningsandbreaktheirbacksforyou?Theobviousanswerof courseismoney.Itseemstobewhatmotivatesmostof themtosell,andtoexcel. Butyoursalesstaff alsoneedslove.Theyspendtheirdays amid rejectionandcomplaints, court-ing the favor of petulant purchasing agents andbelligerentbuyers.Theyareoftenaway fromthecomfortsof houseandlaundryforlongperiodsof time.Alongwiththecommissioncheck,theyneedthe ego gratification of corporate recognition, asymbolicpatonthebackforajobwelldone.Andthatrecognitionshouldbevisibletotheirpeers. A sales meeting is an opportunity to publiclyacknowledgeyoursalespeople’simportance.Theyneedtoknowthat,while they’reouttheredoingbattlewiththehostiles,somebodybackhomereallydoescareaboutwhattheythink,feel,andneed.Salesmeetingsfurnishthesalespeoplewithafeelingof belonging,of beingapartof theteam.Andthefactis,they’regoodbusiness. Onceayear,planabigbash(banquet,golf out-ing,orfieldtriptoasupplier,forexample)withawardsandsomeformof entertainment.If youhavelotsof extramoneyfloatingaround(whichmostsmall company’s don’t), hold your sales meetinginsomeexoticlocale.Spendaweekatatropicalresort.Orcharteraboat.Butforasmallcompanyonabudget,thetwomostpracticalwaysof hold-

13• Personal Selling 131

ingasalesmeetingaretobringeverybodytoyourcompany’shometown,ormeetattheannualtradeconvention. Thesalesmeetingatyourcompanyhasseveraladvantages:yourhomestaff getsachancetomeetandgreetthefolksinthefield.Andthefolksinthefieldgetachancetotourthefactory,see the products being assembled, talk to theproductiondepartmentaboutdelivery schedules,reviewofficeprocedures,andbuildcoalitionswiththe various department heads one-on-one. Salespeopleinthefieldtendtothinkonlyof theircus-tomersandtheircommissions.Butgivenaclearerunderstanding of the headquarters systems andchallenges, theydevelopan appreciation forwhyorders cannot always be shipped when and howtheywantthem. Meetingattheannualtradeshowsavesmoney.Mostsalespeoplehavetoattendtheshowanyway,sowhynotgetthemalltogetherthereforyourownannualmeeting?Tradeshowsofferopportunitiesforguestspeakers,industryexpertsalreadyinat-tendancethatcouldaddinsighttoyourmeeting.Considerinvitingoneortwosuppliersorindustrygurustoaddressyoursalesstaff.Whilemostwillbehappytoobligewithoutcompensation,besuretorewardthemfortheirtimewithatokengift,nicelypackaged. Speakingof gifts,it’salsoagoodideatoleavesomewithyoursalesforce.Sometokenof appreciation,evenaT-shirtorcorporatecoffeemug,remindsthemthatthey’reloved.However,thesetokensarenotasubstituteforannualorquarterlysalesawards.Theseshouldbesignificantitems,earnestexpressionsof corporateappreciationforajobwelldone. Everysalesmeetingshouldhaveaplannedagenda.Startthemeetingwithabrief (that’sBRIEF)speechbythepresident(“Higladtoseeyouallherewe’vehad a great year and let’s all look forward to a

132 Naked Marketing

greatfuturenowhere’sJoe.”)followedbythesalesmanager. Thesalesmanagerislikethecoachof afootballorbasketballteam.Partteacher,partcheerleader,part confessor. Mostly motivator. His speechshould be upbeat, inspiring, action-packed andfull of promise for a bright future. However, if thepastyearhasindeedbeenapoorone,faceuptoithonestly,explainhowtheproblemsarebeingaddressed,andthatyoucanalllookforwardtoabright,action-packedfuturefullof promise. Pace,pace,pace.Don’tgiveanyonetimetodevelopthatglassy-eyedstaresocommonamongaggressivetype-Asalespeopleboredwithaprogram.Keepthemeetingmoving. Agendatopicsshouldincludenewproductsorservicesnowbeingofferedbythecompany,pro-ductionproblemsanddeliveryschedules,andnewadvertisingorothersalessupport.Allowtimefor“newbusiness”.Letyoursalespeopletellyouwhattheircustomersareaskingfor.Afterall,they’retheoneswhoseethemeveryday. Yoursalesstaff canbeatremendoussourceof ideasfornewproductsandservices,suggestingbetterwaystoserveyourclients.Andbetterwaysforthemtofilltheirsalesquotas.Asharpsaleswomanataclientof minenoticedthatthethree-ringbindersshewassellingtoofficesupplycenterswerealsobeingboughtbyalocalphotostudio.Sheinvestigatedanddiscoveredthephotostudiowassellingthebindersasphotoalbums.Wepromptlydummiedupsomeliteratureaimedatthephotosupplybusinessandsuddenly,awholenewmarketwasborn. Invite outside speakers to your meeting.Yourproductmanager,avendor,amoneymanager,orevenanEnglishteachertohelppolishsaleslettersandpresentations.Yoursalespeoplecanbenefitfromtheirexpertise.Anditshowsthatyouacknowledgeyourstaffs’importance.Mostimportantly,ittellsthemsomebodybackhomereallydoescareabout

13• Personal Selling 133

whattheythink,feel,andneed.Ittellsthemthey’reloved. Sometimes,it’snotalwayspossibletocalloneverycustomer personally. Some hunting and farmingmayneedtobeconductedbymail,orfax,orviaemailovertheWorldWideWeb.If so,youneedtocommunicateyoursellingpropositionwithimpact,soyourprospectdoesn’ttossoutyourletterwithalltheotherjunkmailhereceives.

Sales Letters with ImpactSupposeforamomentyou’resittingatyourdeskandinwalksamanyou’veneverseenbefore.Hetipshishat,greetsyouwithaproper“Goodmorning,”andsays, “Valuedcustomer,Iwishtoconveymycompany’sdeepestgratitudefortheloyaltybestowedonusovertheyearsandwhichwehopeyouwillcontinuetoshowusinthefuture.”You’dprobablycheckyourouterofficetoseeif thelittlemeninthewhitecoatshadaccidentallymisplacedthisnut.Then,you’dsimplytosshimoutthedoor. Samewithasalesletterthatusessucharchaiclingo.Yet,forsomeoddreason,peoplethinkthisstiltedlanguageaddsdignityandprestigetoanotherwisecrasssalespitch.Maybeitdid30yearsago.Butnottoday.Today,itconjuresupimagesof clerkswithgreeneyeshadesandsleevegarters.Probablynottheimageyourfirmwishestopresent. If youhavesomethingtosay—andyoudooryou wouldn’t have written the letter in the firstplace—sayitstraightout,simplyandtothepoint.Skiptherhetoricalsludge. Mostbusinesslettersarewrittenforoneof threereasons:torequestinformation,toprovideinforma-tion,ortosell.Thefirsttwoareeasy.“Pleaseforwardinformationregardingyournewlineof gimcracks...”or“Thisrespondstoyourrequestregardingcasediscountsongewgaws...”. Butasales letterdoesn’thavetobedifficult if youfollowafewsimpleguidelines.Overtheyears

13� Naked Marketing

of writing sales letters, and teachingothershowtowritethem,Ihaveevolvedafour-stepprocess(andacorollary)that,if followed,canmakewritingsalesletterseasierforyouandprofitableforyourcompany.Step #1: Grab their attentionJust as theheadlineof an ad shouldpull in thereader,soshouldtheopeningof yoursalesletter.Itmaybeacatchyfirstline,anenclosure,astrikinglayoutorevenanattractiveenvelope.Thisdoesn’tmeanyouhavetospendalotof money.Yousimplyneed a little, good old-fashioned ingenuity.Trytheseideas:

wHaveyourprintercroponecornerof yourletter.Thenopenwith:“If youfindourcompetitionis cutting cornerson service, tryourfive-yearservicewarrantyon all parts and labor...”.Or“Tryingtocutcornerstomakeendsmeet?Whynotcallusforaloan...”wTryahandwrittenletter.Haveyourprinteruse

blueinkonyellowblue-linedpaper.(Besuretousesomeoneinyourofficewithlegiblehandwrit-ingif yours,likemine,resemblesthefootprintsof agaggleof drunkenpigeonswanderingalongthepage.)Yourmessagewillstandoutfromthehundredsof neatlytypedlettersreceiveddaily.If youwriteitinacasualtone,youconveyanintimacysuretobeanattentiongrabber.wJuggletheflow.Tomakeaparticularpoint,indent

afewlines.Makeoneparagraphflushleft,thenextflushright.Usebulletstomakeaseriesof points.Keepthereader’seyemoving.wBeginwithastory,oraproblemyouneedhelp

solving. Like this: “Help!We’re drowning inexcessinventoryandneedtomakeroomfornextyear’smodels...”wUsehumor.Here’soneof myfavorites:

13• Personal Selling 13�

Help! Please save my home life byreadingtheenclosedcatalog. My husband has been slaving overitnightandday,workinglikeadogandtreatingmelikeoneintheprocess.If it’snotasmashingsuccess,canyouimaginewhatitwillbeliketolivewithhim? Sowon’tyoupleasereadJoe’scatalog?Itcontainsallsortsof newproductsde-signedtomakeyourlifeeasier(andmine,too). Sincerely, JudyDokes(Joe’swife).

Noticethecatchyopeningline.Thereaderim-mediatelywondershowreadingacatalogcansavesomeone’shomelife.Thenumberof personalnotestoJudythatshowupwithyourorderswillattesttotheeffectivenessof thisapproach.w Gadgets grab attention. Paste a little plastic

computeronthepagetoannounceyournewwebsite.Orencloseakey(whocaneverthrowoneof thoseaway?)thatyourprospectmustbringtoyourbusinesstoseeif itopensaspecialboxtowinaprize.Bytheway,it’sagreatwaytogetcustomerstoshowupatyourtradeshowbooth,too.Contactyourlocalsalespromotionandpre-miummerchandisingspecialistsandgetontheirmailinglists.Theircatalogsarelikelytogenerateallsortsof attention-grabbingideas.

Step #2: Get to the pointTell‘emwhattheyneedtoknowandtell‘emfast.Theymaynotreadallthewaydowntoparagraphseventofindouttheycansavehundredsof dol-larsbyorderingbeforetheendof themonth.Puttheprimarybenefit,themainreasontheyshouldbuyfromyou,andbuyfromyounow,inthatfirstparagraph.You may not get another chance tohook‘em.

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Oneof myfavoriteploysforimprovinganysalesletteristocutoff thatfirstchit-chattyparagraph.Tryitandseeif itdoesn’timproveyournextsalesletter.Anothertrick:movethe lastparagraphupfront.Thesummaryparagraphisoftenthebest.Nailitontop,whereyourreaderwon’tmissit. (Onecaveat:If you’resellinginternationally,payheedtothebusinesscustomsof yourbuyers’homecountry. It’s considered boorish in internationalcirclestoplungeintocrasscommercialdiscussionsimmediately. So, if you’re selling internationally,use thatfirstparagraphasa lead-in,butmake itprovocativeenoughtogetyourreadertoreadthenextparagraph,whereyou’reback tobeingcrassandcommercial.)

Step #3: The rationaleGiveyourcustomersareasontobuy.Betteryet,givetwoorthree.Thisisyoursalespitch,theoneyou’dmakeif youwerestandingontheothersideof hisorherdesk.Uselotsof facts.Themorefactsyoutell,themoreyousell. Usealist.They’reeasytoreadandaddeyeappeal.Forexample: Ournewgizmos —saveyoumoney; —lastlonger; —areincrediblyconvenient; —makelifeeasierforJudyandme(seeabove). Usetestimonials,thenextbestthingtoword-of-mouthadvertising.Yourcustomerswillfinditeasiertobelieve theendorsementof a fellowcustomeroverthepufferyof theletterwriter.Step #�: Tell ‘em where & when to buyIf yourprospectputsdownyourletterbeforeorder-ing,you’rethrough.Youmustgethimtoactnow! Give a cut-off date, or some imposed limita-tiontoforcehimtoactnow.If hefeelshemight

13• Personal Selling 13�

missoutonagreatopportunity,he’smorelikelytorespond.“Ordernow,becausethisisalimitedoffergoodonlyuntil...”workssurprisinglywell,if thereasonforthecut-off iscompelling,orevenhumorous.Forinstance, “MymomwantstousethewarehouseforhernextMahJongClubmeeting,soweneedtocleareverythingoutbynextweek!”Thatkindof personal touchoftenworksbetterthan,“OffergoodthroughAugust15th”(whenweplanonhavinganevenbiggersale?).

Corollary: Always use a postscriptResearchshowsthatthefamiliar“P.S.”attheendof aletterisreadaboutthreetimesasfrequentlyasthebodycopy.Sousethepostscripttomakeyourpointonemoretime.

A few more tips: w Skip the fancy colors unless you have a very

imaginative idea or other compelling reason.Paperstockandinkcolorsaddtothecostof asalesletterandgenerallydon’tcontributemuch.Spendlessoncreativeproductionandmoreoncreativethinking.wSkip thesalutationunlessyoucanpersonalize

each letter using modern computer databasetechniques.Nothingturnsoff aprospectivecus-tomerquickerthan“Dearsir;”(especiallyif thereaderisawoman),or“Dearvaluedcustomer.”Howvaluablewill they feel if youdon’t evenknowtheirname?wLightenup.Everyoneenjoysagoodlaugh,and

humorsells.Butkeepitclean.Don’triskbeingoffensive.wHomereadersneedmorepersuasionthanoffice

readers.Thepurchasingagentwhowillsignanor-derinaheartbeatforthousandsof hiscompany’sdollarswillagonizefordaysathishomeovera$150lawnmower.Brevitytotheoffice,where

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thepaceisfreneticandtheworkloadonerous.Longcopy,withplentyof facts,tothehome,wherethetempoismorerelaxed.

P.S.Followthesesimplestepstomakeyoursalesletters more compelling, readable, and usefulforyourcustomers.Mostimportantly,theywillgeneratemoresalesforyourcompany.

Mailing Lists

Nowyouhaveaforceful,compellingsales letter.Whodoyousenditto?Fromthedayyouopenyourbusiness,begincompilingalistof yourcustom-ers.Nomatterwhetheryouareinheavyindustrialequipment,orretailsales,makealist.

Have a sign-up book in your store. Ask yoursalespeoplefornamesof customers.Gleannamesfromtradepublications.Addpotentialcustomersbyrecordingallthebusinesscardsyoupickupattradeshowsandconventions.

Guardthatlistlikethegolditrepresents.Keepitup-to-date.Then,useit.Keepyournameinfrontof yourcustomersandprospectsonaregularbasis.Useanyexcuse:aspecialsalesevent,holidaygreeting,ormypersonalfavorite,thenewsletter.Eventually,excuseswon’tbenecessary.Mailingswillbeanaturalpartof yourbusinessroutine.Make Money From Your Mailing ListYoumayevenbeabletoturnyourmailinglistintocash.If youhavealargeenoughlist,withspecificnamesandcurrentaddresses,youmaybeabletorent it toothers.Butbe carefulwith this. Somepeopledon’t likehavingtheirnametossedaboutlikesomuchchaff inthewind.

Ontheotherhand,itcanalsobenefityourlistmembers.Ourcompanyhadthenames,addresses,telephonenumbers (even theheightandweight)of scores of men andwomen attending nursingschoolthroughoutthecountry.Thiswasalistof

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soon-to-be upwardly-mobile, home-establishingmedicalprofessionals. We contacted list brokers to see if they hadcustomers forour list.Boydid they ever.Creditcardcompanies,insurancebrokers,carrentalfirms,furniturerentalfirms,younameit.Lotsof com-panieswantedtoselltothem.Wemadeabouttencentspernameandthebrokermadeapercentagewhenhesoldthelist. Eventhoughweonlyhadafewthousandnames,thesamelistsweresoldoverandoveragain.Greateffortwasmadetokeepthislistcurrentbecauseitrepresentedavaluableassettoourfirm.Thoughwewereinthebusinessof manufacturinguniforms,wemadeatidyprofitsellingthenamesof ourcus-tomerstoothers.Andthelistmembersbenefitedbybeingmadeawareof productstheywouldneedaftergraduation.

Mailinglistsmightjustcreateawholenewprofitcenterforyourcompany,too.

14

Retailing

For many of us, retailing was our first job.Whetherhawking sandwiches at the localfast-foodrestaurant,orsellingshoesatthe

mallstore,retailingisthelifebloodof commerce.Twentypercentof allworkersareemployedinover1.2millionretailestablishmentsintheU.S. Retailers’lifecycleissimilartotheProductLifeCycle(seeChapterTwelve).Mostretailestablish-mentsenterthemarketasdiscountersinanefforttobuymarketshare.Overtime,theirexpensesmountasconsumersdemandmorequalityandmoreservice.Theyaddoutletsandadministrativeworkers.Soon,theirpriceshaverisenandthenextdiscountstoretoopenbeginstoerodetheirmarketshare. Theretailequationissimple.Bydefinition,yourtotalrevenuewillbetheresultof thetotalnumberof customerswhovisityourstoretimestheaverageamounteachonespends.

VisitsxAverageCheck=TotalSales

BoosteitherAverage CheckortheNumber of Visits, you increaseyour sales.Let’s lookfirstatAverage Check.Howdowegetcustomerstospendmorewhentheyareinthestore? Think of your store as a battleground. Everyinchof floor,wallandcounterspaceiscontestedsavagelybyhundredsof manufacturers,wholesalers,anddistributors.Thisisthefinalprovingground.Willyourcustomerbuyyourproducts?Orwillshewalkaway? If you’rearetail storeoperator, it’suptoyou.Howeffectivelyyoudisplayyourwaresmaybethe

1�2 Naked Marketing

differencebetweenwinningandlosingthebattleforyourbottomline.

Impulse PurchasingCustomersbuyonimpulse.Thinkaboutthelasttimeyouwentshoppingto“buysomethingfordinner.”If you’relikeme,youprobablyleftthestorewithfourbagsof groceries.WatchaguyinaBigBoxhardwarestoresometime.Seehowmuchisimpulsepurchase,howmuchisplanned? The Point-of-Purchase Advertising Instituteclaimsthattwo-thirdsof allbuyingdecisionsaremaderightintheplaceof business.Evenif thatfigureseemsalittlelofty,retailersshouldtaketheuseof in-store signs anddisplays very seriously.Hereareafewhelpfultipsonmaximizingsalesatyourstore.Signs serve as silent sales people.They nevercomplainaboutbeingoverworked,andtheydon’tgetpaidacommissioneither.Theygiveproductinformation,demonstratefeatures,reinforceyouradvertising campaign, announce discounts, andactuallygeneratesalesallbythemselves. Usepersuasivelanguageonyoursigns.Studiesshowthatkeywordsdrawcustomers:YOU, EASY, SAVE, NEW, ANNOUNCING, GUARANTEED, FREE, NOW, SALE.Not terribly innovative,buttheywork.AhugebannerproclaimingSALE!orFREEGIFT!orSAVE40%!willconvinceshoppersthattheyshouldbuyfromyourightnow.

Crucialtosuccess:keepitsimple.Useclearlet-tering,nofancyscript.Shortphrases.Nocommasorperiods.Exclamationpointsaregood!(Butnottoomany!!!)Advertising Tie-Ins meanthatin-storesignsanddisplaysshouldtieinasdirectlyaspossiblewithyouradvertising,oryourcustomersmaybecomeconfused.Yourads leaveasubliminal impression

1�• Retailing 1�3

onyourcustomers.Signsareusefultoawakenthememoryof thoseadsandhelp leadtoasale. If your signs anddisplays are consistentwith youroverallcreativestrategy,yourcustomers’willingnesstobuywillincrease. Onesurewaytomaintainconsistencywithyouradvertisingistoblowupyouradintoafive-foot-highposter,mountitanddisplayitinyourwindow.Displaysmallerversionsthroughoutyourstore.It’sasmartwaytoensurethatyourinteriorsignsanddisplaystieinwithyouradvertising.Simple,effec-tive,andinexpensive.Awinningcombination.Cross Merchandising meansgroupingsimi-laritemstogether.Inahardwarestore,theplumbingfittingsshouldnotbemixedinwiththeelectricalitemsorthepaintsupplies.If yoursisahobbystore,allthemodeltrainsandaccessoriesshouldbeinoneareaof thestore,alltheradiocontrolledcarsinanother.If apersoncomesintobuyarailroadengineandsees severalnewcity scenerydisplays(withasignsaying:“NEW!ONSALE!30%OFF!”),youmaypickupadditionalsales. Sometimesamanufacturermayofferelaboratedisplaysforuseinyourstore.Whenlayinginnewstock, ask themanufacturer if point-of-purchasematerialsareavailable.Mostarehappytocomply.They may be able to provide you with banners,brochures,countercards,displayracks,signs,post-ers,andmore.Allyouhavetodoisask.Vertical Displays, Not HorizontalToooftenretailerswillplaceawholelineof productshorizontally(inrows)acrossadisplaycase,hop-ingtoimpressshopperswiththeirvarietyof stylesandsizesof oneparticularitem.Badidea.Alwaysdisplayvertically.Lineupsimilaritemstoptobot-tom.Shoppers’eyeswilltypicallyscanshelveslefttorightateyelevelandseeyourvastassortmentof items(allgroupedtogether,of course,withsimilar

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types—see “Cross Merchandising,” above).Youincreaseyourchancesof snaggingtheireyes(andtheirwallets)tenfold.Let Them Touch Wehumansjudgetheworldusing five senses.While sight is the most used,touchisthesecondmostimportantwhenmakingapurchasedecision.Whatdoestheplastic(orclothorwood)feellike?Aretheedgesroughorsmooth?Howheavyisit? Items under lock and key discourage buying.Shoppersarereluctanttobotherasalespersontoopenalockeddisplaycase.Ortheymaysimplynotbewillingtowaituntilthesalespersonisavailable.Unless it’s easily pocketed and worth a fortune(jewelry, for example), keep it in the open.Theincreaseinprofitfromadditionalsaleswillmorethanoffsetthelossfrompilferage.Organize your store shelves What’sdrearierlookingthanahalf-empty,dustydisplay?Ormorewastefulthanemptyshelvesthatcouldbefeaturingandsellingyourbestitems? Keepitclean.Nothingislessappealingthandustanddirtonmerchandise.Itdiscouragestouching(seeabove).Andittellsyourcustomersyoudon’tcareaboutthem.Restockyourshelvesregularly.Bareshelves,emptyitemhooks,andvacantdisplaycasesspellout-of-stocktoyourbuyers.If theycan’tfindwhatthey’relookingforrightaway,shoppersassumeitwasontheemptyhook,orthevacantshelf.Andyouloseasale.Hook Them One Last Time Make thecheckoutcounterthemostattractiveplaceinyourstore.Afterall,it’syourlastchancetosell.Putthehandynecessitiesbythecashregister.Inahairsalon,it’stheshampooandhairbrushes.If youoperateadrugstore,film,batteriesandotheraccessoryitemsmakeforgreatimpulsepurchases.

1�• Retailing 1��

Letyourcustomersknowtheyhaveoptionswhenpaying.Alwaysdisplaycreditcardlogosprominently,bothinyourwindowandatthecashregister. Inthebattleforcustomers,youneedalltheam-munitionyoucanmuster.Followthesefewsimplemerchandising techniquesandmakeyour storeamorepleasantplacetoshop,amorepleasantplacetowork,andamorepleasantplacetocountyourprofitsattheendof themonth.

The Shopping ExperienceAcademicscallit“atmospherics.”It’sthewayyoufeelwhenyouwalkintoastore,itsambience.Retailersachievestoreambienceusingsightandsound. Thelookof astoresetsthesellingmode.Welearn90%of whatweknowbyseeing.Beforewecanlearnanythingwithoureyes,wemustbeinterestedenoughtolook.Ourattentionmustbecaptured. Usemovement.Nothingcapturesattentionlikemovement.Watch the crowds gather during theholidaysasChicago’sMarshallFieldssetsuptheirwindowdisplays.Hundredsgathertoseetheroboticelves,reindeer,andfairytalecharactersbobtheirheadsandwavetheirarms.Hobbystoresruntheirmodeltrainsinthewindowforthesamereason.

Designyour retaildisplays toattractattentionwhilestillfulfillingafunctionalrole.Recessuppershelves,tiltlowershelves.Theidealdisplayshelv-ingshouldappealtotheshopperof averageheight.Lowershelvesshouldbeatleast30”fromthefloorand,if possible,tiltedslightlytowardtheviewer.Uppershelvesshouldberecessedtoallowvisualaccesstothelowershelves.Dirtyshelvestellyourcustomersyoudon’tcareaboutthem.

Colorhasmanyapplicationsindisplaydesign.Itcanbeusedtodirecttheeyefromonegroupof itemstothenext.Ortodivideitems:theredareamaybeforonesetof products,thegreenareaforagroupof differentproducts,yellowforanother,etc.Certainsituationsmaylendthemselvestospecial

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colors:blackbackgroundforhigh-techitems,brightcolorsforchildren’sproducts,orkhakiforyoungadultshoppers. Soundplaysanimportantrole,too.Themusicplaying in thebackground sets a pace for shop-ping.Somestoresusefreneticmusictodiscouragelingering.Fastfoodrestaurantswantyoutogetinandgetoutfast.Slowertemposcausecustomerstohangaround,maybemakeanextrapurchase.Nosound,ornoiseirritants,maycausecustomerstobeturnedoff tothepointtheydelaytheirpurchase,orcutshorttheirvisitentirely.

Building TrafficWeknowthatif wecangetthecustomersintoourstore,wecanencourageimpulseshopping.Buthowdowebuildtraffic?Howdoweluremorecustomersintothestore? Holdasale. Asaleisamongthetoptrafficbuildersforretail-ers.Asalebringsincustomers,movesmerchandise,andhelpscashflow. Otherreasonstoholdasale:

1.Yourcompetitionisholdingasalecausingyourstoretobeperceivedas“fullprice.”

2.Youarewillingtoacceptlowerprofitmarginsandmakeitupinvolume.

3.Youwanttoreduceinventoriesandbuildbusinessduringslowsellingperiods.

4.Youaretryingtoattractnewcustomers.

Yoursalemustbeheavilypromotedsoastoat-tractnon-customers.Youdon’tsimplywanttogiveadiscounttothefolkswhowouldregularlybuyfromyouanyway.Thesalemustbringincustomerswhowouldnothaveotherwiseshoppedyourstore. Everysalemusthaveareason.Simplyhavingasaledoesn’tcreatetheperceptioninthemindsof yourcustomersthattheyaregettingabargain.Rather,

1�• Retailing 1��

theywillsimplybelievethatyouareoverpricedtheremainderof thetime. Herearefivereasonsforasaleyoucanuse inyour store to bring in customers and move outmerchandise:

1.TheTruckloadSale,incooperationwithoneof yourmajorsuppliers.Promotethesalethroughmediaadvertising,mailings,andlotsof displaysigns.The customerperceives yougot a goodprice on the product because you bought awholetruckload,andyouarepassingalongthesavingstohim.

2.TheDownTimeSaleisrunduringyourstore’sslowperiods(maybeit’sThursdays;ormorningsbefore10am).Your“ThursdaySale”couldofferspecialsonspecificproducts,orastraightpercent-agediscountonanythinginthestore.

3.YourBirthdaySaleoffersadiscount(say10%)toanycustomeronhisorherbirthday(orevenduring their birthday week). A twist on thisideaisthe“BirthdayClub.”Customersfilloutaformlistingtheirbirthday.Thenaweekorsobeforethedate,yousendthemaninvitationtostopbyforafreeproductorspecialdiscount,justforthem.

4.TheProductof theWeek features adifferentproducteachweekataspecialprice.Youmustofferdeepdiscountsonexcitingproductsthatwilllurecustomersbacktothestoreweekafterweek.

5. Senior Sale Days offers a senior discount attraditionallyslowtimes,sayonemorningeachweek.

Asaleisthelifebloodof theretailer.Itcanreducebloatedinventories,generatecashintimesof need,andserveasarewardtoyourcustomers.Andthat’sgoodforbusiness.

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Add Luxury Despiteanuncertaineconomy,salesof luxurygoodsremainsteady.Thenumberof affluentAmeri-cans (householdswith$100,000 annual incomeormore)continuestogrow,up75%inthispastdecade. Retailers have taken note.While the primarypurchasers of luxury goods (think Armani) andservices (think at-home avocado wrap) remainthetrulyrich,severalretailershavetakenordinaryitemsand“super-riched”themsuccessfully(think$5StarbucksMochaCappuccino). Luxurymaybeagoodwaytorecession-proof yourcompany.Historically,luxurygoodsweatherthedips in the economybetter thanmainstreamgoods. In uncertain economic times, consumers facefinancial—andoftenemotional—stress.Andwhiletheymaymodify their expectations (putoff thepurchaseof anewcarorsecondhome),theydon’tchangetheirfundamentalbehavior.Thesmallindul-gencesthatgotthemthroughtheday(theicecreamcone,thegourmetcookies)beforetherecessionwillstillbethesmallindulgencesthatgetthemthroughthedayaftertherecessionandintorecovery. Sohowdoyouadaptyourproductmixtoincludeluxurybuyers? Simplyraisingprices,of course,couldcostyoucustomers.Butaqualityproductwithaqualityrepu-tationwillcontinuetobeindemanddespitehardtimes.If yourstoreoffersabroadrangeof productsorservices,offeringseveralinaluxurycategorywillhelpblunttheeffectsof apooreconomy. Understandingthemotivationsof luxurybuy-ersiscrucial.Accordingtoresearch,threedistinctmotivationsfuelluxuryspending:

1�• Retailing 1�9

1. Luxury is FunctionalCustomer buys it because it’s of betterquality—itlastslonger,hasmorebellsandwhistles,orismoredependable.

These are the older,wealthier consumerswhoareintheirpeakearningyears,emptynesterswithlarge disposable incomes.They want things of enduringvalue,builtto last(“Likethegoodolddays”).Theymakelogicalratherthanemotionalorimpulsivedecisionswhentheymakeapurchase.Toreachthem,useprint.They’reskepticalof television,evenmoresoof theInternet.Uselotsof factsinyourads.Information-intensivemessagesworkbestwiththisgroup.

2. Luxury is Reward Theybuyluxurygoodsasstatussymbols,to satisfy ego, a way to say, “I’ve madeit.”

Theseareyounger,often “newrich,”whobuyconspicuousluxuries.Theyaremakingastatementaboutwhotheyare,theirlevelof importance.Brandswithwidespread recognitionworkwellwith thisgroup.Toreach them,usebothprintand televi-sion.Make“prestige”or“exclusivity”theprimarybenefits.

3. Luxury is IndulgenceBuyerswillingtopayapremiuminorderto express their individuality and makeotherstakenotice.

More male than female, these consumers areyoungerandfrequentlycomefromwealthyfamilies.Theyenjoytheluxuriesforthewaytheymakethemfeel.Farmorelikelytomakeimpulsepurchases,theyrespondwelltoemotionalmessages.Useadsthatpromotetheuniquequalitiesof aproduct.

1�0 Naked Marketing

Having at leastonegroupof luxuryproductscancreateanimageof qualityforyourcompany.Itcanalsohelpmaintainyourprofitabilityduringleantimes.

Gift CertificatesIf you’rearetailer,giftcertificatesareagreatway toaddanotherservice toyourbusiness.Andagreatwaytocreateloyalcustomersintheprocess. Whetheryousellgroceriesordrycleaning,giftcertificatesshouldbeapartof yourproductmix.

Itmeansyourcustomerismorelikelytomakea purchase instead of just shaking his head andwalkingoutyourdoor. Bestof all,thegiftcertificatecreatesmultiplevisits,oncebythebuyerandatleastoncebytherecipient. Here’sanaddedbonus:CashFlow!Astheseller, youget tousemoney received for thegift certificate until the recipient makes hispurchase.Sometimes, thegift certificate isn’tredeemed for ages, allowing you to use themoneyindefinitely. If thereisadownsidetogiftcertificates,it’sthatsomepeoplewilltrytocounterfeitthem.Herearesomewaystomakesureyouprotectyourself fromfraudwhenissuingagiftcertifi-cate.

1. Customize itIf you get generic gift certificates at your local

stationeryshoporofficesupplystore,beware.If youcanfindthemthere,socanathief.If youusegenericcertificates,besuretoembossthemwithyourcorporatesealorlogo(andlimitaccesstothestamp).Themoreoriginal,thelesslikelyathief istoduplicateit.

1�• Retailing 1�1

2. Record itWhenever you issue a gift certificate, be sure to

recorditinalog.Recordthecertificatenumber,thebuyer,thedate,theamount,andtherecipient,if known.Then,whenitisredeemed,matchthetransactionagainstthecertificate.

3. Redeem itRedeemgiftcertificatesformerchandiseonly.If the

recipientwantstobuya39¢itemwitha$50.00gift certificate, issue a new certificate for thebalance.TheobjectisNOTtodrainyourcashregister,buttogetthecustomerbackintoyourstore.Youmayevenwishtostateonthecertificate:RedeemableForMerchandiseOnly.

4. Take itDon’t forget to take the gift certificate from the

shopperwhoredeemsit.Youwouldbesurprisedhowoftenretailerscheckthegiftcertificate,butforgettokeepit.

Thesearejustafewsimpleprecautionsyoucantaketomakegiftcertificatessafeforyourbusiness. Giftcertificatesallowyoutoadvertisethatyou have something for everyone. And, theycanmakealastingimpressiononyourbottomline,too.

15

Inexpensive Marketing Tactics

That Work

Big companies have big budgetsandbuildtheirbusinessesusingbigtactics.Butmostsmallcompaniesdon’thavedeeppocketstheycan

pickwhentheyneedtospendmoneyformarketing.If yoursisoneof thosecompaniesthatneedstoachievestellarresultsonadown-to-earthbudget,hereareafewlow-costtacticsthatareeasytoimplementandoffersurprisinglystrongreturns.

Business CardsGiveeveryemployeeabusinesscardwithhisorhernameonit.Everyemployee.Theywillfeelappreci-atedandtakegreatprideindistributingthem.Thecardsareinexpensive,andeachonerepresentsanotheropportunityforyournametobeseen.

Collateral MaterialCollateralmaterialisdefinedas“allthatothercoolstuff ”yougetwhenyouspendmoneyonadvertis-ing or promotion.When youmake a significantpurchaseof mediaspace,saysixquarter-pageadsinyourindustrytrademagazine,youmayhavele-veragetowheelanddealforextras.Startwithratediscounts;alwaysgetthebestdealyoucan.Thenask for a few “freebies.”Like reprints—maybeadecorativeoneinbrassforyourwall.Howaboutaposter-sizeblowupof youradforyourretailstoreoryourcompanylobby?Ormaybeacouplehundredcopiesformailings?RadioandTVstationsoften

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haveticketstosportingevents.Askfortwointhemedia’sprivatestadiumbox.Youcanusethemtoentertainakeycustomer.

Evenif youaren’tmakingasignificantpurchase,mostmediawillofferperkstonewaccounts.

Checkthetrademagazinesservingyourindustry.Every good trade magazine has a merchandisingdepartment. In it are hardworking individualsdevoted to producing materials to promote thegoodsadvertisedintheirpages.Theircooperationisboundlessandinexpensive.Reprints,preprints,mailing lists, newsletter listings, presentations toindustrybuyers,tradeshowpromotions—askforthemall.

Door HangersThey work. I know that sounds incredible. Buttheydo.Doorhangersrangefromtheinexpensiveblack-and-whitevarietyto4-colormini-brochures.Highschoolkidscanblanketaneighborhoodinanafternoon. They’reintrusive.They’reinexpensive.Theyreachprospectsintheirhomes.Theyallowyoutochooseyour customers geographically, literally block byblock.Theyhavenosurroundingcompetitionunlikedirectmailwhichgetslostamongtheothermail,oryournewspaperadwhichhastocompetewithalltheotherads.Doorhangersgetnoticed. Quick,inexpensive,andprofitable.Gofigure.

FormsCompany formsmakepowerfulmarketing tools.Every piece of corporate printing is a potentialmarketingvehicle.Eachshouldcarrythecorporatemessage.Invoices,orderformsandorderacknowl-edgmentssenttocustomersandsuppliersareanotheropportunitytoimplantyourcorporatelogo,sloganorevenCorporateMissionStatementinthemindsof thoseyouneedtoreachmost.

1�• Inexpensive Marketing Tactics 1��

Don’tforgetinternalcommunications.Imprintsalesforms,timesheets,andmemopadswithyourcompanylogo,sloganorMissionStatement.Itcre-ates “espritdecorps”andremindsemployeesof yourfirm’sguidingprinciples.

On-Hold CommercialsPeoplecallyourbusinesseveryday.Unfortunately,somegetputonhold.Youcankeepthemwaitinginsilence.Oryoucanplugintoalocalradiostationandtakethechanceof havingyourcustomershearacompetitor’sad.Theymayevenhangupandcallthecompetitor.

Oryoucanmarkettothiscaptiveaudience.Whencallersmustbeputonhold,playappropriatemusicinbetweenmessagesaboutyourproductsorser-vices.Forexample,if you’reabank,communicateyour latestCDrate;acardealership,bragaboutyourlowprices;ahealthcareprovider,explainthebenefitsof yourservices.Updatetherecordingsasfrequentlyasnecessary.

Alocalrecordingstudiocanselectsuitablemu-sicforyou,createthecustomizedscript,producefinishedsoundtracksandfurnishtheendless-looptape and player for considerably less than youmightexpect.

Customer QuestionnaireResearchsays that two-thirdsof customers leavetheir suppliers because they think that supplierdoesn’tcareaboutthem,doesn’trespondtotheirneeds.Don’t letthishappentoyou.Periodically,askyourcustomers,“Howarewedoing?”Makeiteasyforthemtorespondbyprovidingastamped,self-addressedenvelope. Aquestionnaireservesseveralpurposes.Itidenti-fiestrends,pinpointsproblemareas,andmayevenleadtoanewproductorservicewhichhadn’toc-curredtoyoubefore.

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A recording studio distributed self-addressedquestionnairestoalltheircustomersforjustthreemonths. Among other things, they learned thatcustomers wanted lower rates and longer hours.Basedontheircustomersinput,thestudiodecidedtoextendtheirhoursintotheeveningwith“off-hour”rates.Thisbetterleveragedtheircapitalequipmentandincreasedrevenue.

Thereversesideof thissimplepostcardques-tionnaire had the company’s return address andastamp.

A Sample Questionnaire

How are we doing?

We can do better. Just tell us how. Please take a moment to fill out this questionnaire and return it. Postage is on us. Thanks, from the staff at CPI.

great good fair poor

Speed ®®®® Creative Input ®®®® Quality ®®®® Courtesy ®®®® Price ®®®® Follow-Up Dubs ®®®® Packaging ®®®® Billing ®®®® Suggestions/Comments

1�• Inexpensive Marketing Tactics 1��

Sponsor A Little League Team

Orabowlingteam.Orsponsoraholeatacharitygolf outing.Betteryet,doallthree.Beapartof thecommunity inwhichyouliveandwork.Thebenefitsarenotaltogetheraltruistic.If youselltolocalcustomers,teamuniformswithyournameonthemarejustonemorewaytocreateawarenessforyourcompany.Further,thegoodwillyougenerateinyourcommunitywillmakeiteasiertohiregoodemployees.Bestof all,youhavethesatisfactionof knowingyousupportagoodcause.

UniformsMentionuniformstoyouremployeesandtheycon-jureupimagesof orangepolyesterjumpsuitswith“Judy”or“Norb”overthepocket.Prettygrim.Butconsider,uniformscanbeeverythingfromsimplet-shirts to high fashion bought at the trendiestboutique.Aslongasthey’re“uniform.” Simplychooseyourcorporate “style”andtakeyourclothestoanembroiderer(listedinyourlocalYellowPages).Spendasetupchargeof $100to$150tomakeyourcompany’snameandlogo(It’snotyouremployee’snameyouwantoverthepocket.It’syours!),theneachshirt,jacket,orbaseballcapcanbeembroideredforabout$5.00. Researchshowsuniformsworkintheworkplace.TheAmericanpublicfavorstheideaof employeeswearingidentifiableapparelalmost8to1,accordingto a study conducted for the National Associa-tionof UniformManufacturersandDistributors(NAUMD).

Attribute %Mentioning Easiertorecognize 97 Moreprofessional 73 Moreneat 69 Moreprideintheircompany 66

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Bettertrained 58 Morepredictable 53

Whetheryoursisamachineshopwhereheavy-dutyuniformsareworntowithstanddirtandfrequentlaundering,orafinancial institutionwheremoreformalattireisstandard,uniformsappealtocus-tomers. NowmaybeI’malittleprejudiced.Afterall,Ioperatedanapparelfirmspecializinginuniforms.Butitmakessense.Thisisawin-wintactic.Youremployeesgetanattractivefringebenefit;yougetalotof goodadvertising.How?Useyourstaff aswalkingbillboards.Putyourlogoonbaseballcaps,t-shirts,jackets,golf shirts,thelatestincasualwear,or any kind of clothes your staff likes enoughtowearoutside theirhomes.Best advice: let theemployeespicktheirown“look”(withincostandstylelimits). Even if your company name never evokes itsownbrandedlifestylelikeHarley-Davidson(whichhasacquiredalmostacultfollowingwithitslogoemblazonedoneverythingfromjacketsandt-shirtstosuspendersandsleepwear),thebenefitsof nameawarenessaloneareenormous.Maybethemotorcyclelookisnotforyou.Ormaybeyouandyouremploy-eeshavetowearBrooksBrothersregularly.If so,agoodqualitycasualshirtor100%cottonsweaterwiththecompanycresttastefullyembroideredonbreast,collarorcuff maybejustthething.Stylishapparel will be worn proudly outside the office,amongyouremployees’friendsandfamilies,aswellasatcompany-sponsoredevents(tradeshows,golf outings,supplierappreciationdinners,etc.). Aclientwhosecomputerprogrammersfrequentlyspentmanyconsecutivedaysintheircustomers’of-ficeswashavingtroubleenforcingadresscode.Theprogrammers,acreativeandsomewhateccentriclot,oftenexpressedtheircreativity(andeccentricity)intheirmannerof dress.Appearancewasimportantto

1�• Inexpensive Marketing Tactics 1�9

theircredibility.Becausethecustomers’computerdepartments usually have casual dress codes, weshoppedafewdifferentcatalogsandoutfittedallthe programmers in khaki slacks and jean shirtswiththecompanylogoonthebreastpocket.Theylookedsharp.Myclientgaveeachemployeethreeshirtsandtwopairof slacksandsoldadditionalpiecestothematcost.Bothcustomersandemployeesrespondedsofavorablythatafewmonthslaterweaddedwarmweatherdarkslacks, someattractivesweatersandseveralotheroutfits(naturally,withthecompanylogoonthebreast)toour“catalog.”Attheholidays,alltheemployeesreceivedalinedjacketwiththecompanylogoprominentlydisplayedacrosstheirshoulderblades.Theemployeesworetheircomfortablebutattractiveclothingatworkandplay,andnameawarenessintheirsalesregionincreaseddramatically. Uniformsprovideyouonemorewaytogetyournameinfrontof yourcustomers.Youremployeesappreciate the fringe benefit. And you’re assuredtheyalwayslooksharp.

16

Tricks Of The Trade Show

There are more than 5,600 trade shows,conventions,andexpositions intheU.S.every year. Nearly every industry has a

majortradeshow.Andmanylocaltradeassociationssponsorsmaller,regionalshows,too. Sometimes,itmayseemlikeyou’vebeentoeveryoneof them.Sloggingyourwaypastboothafterboothof blandlysmilingmenandwomenreadyto tell you more than you ever wanted to knowabouttheirproductorservice.Butdespitesorefeet,drudgery, and occasional boredom, trade showscanbeanextremelyvaluablepromotionaltoolandsourceof industryinformation:Atatradeshow,youcan:

—Seenewproductsandindustryinnovations,andshowoff yourownnewproductsorservices;

—Meet and greet prospective customers face toface;

—Secureleadsthatyoucanfollow-uplater;—Developnamesforyourmailinglist;—Socializewithbuyersonaninformalbasis.Asbeneficialastheyare,tradeshowscanalsobeextremelyexpensivewhenyouincludethecostof thespace,transportation,lodging,andthedisplayitself.(Don’tforgetthe“opportunitycost”of yoursalesstaff ’sdowntime.)Industrybehemothsspendfortunesondesigning,buildingandpromotingtheirtradeshowbooths.Youcan’taffordto.Withalittleplanning,youcandevelopacost-efficientdisplayandattractthemostpossibletraffictoyourbooth.

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Building Your BoothStartwiththedisplay.Therearethreebasictypes:

1.CustomDesign 2.StockDisplay 3.Self-ContainedUnit

The Custom Designed unit is as simple or aselaborate as youwant tomake it, andusuallythemostexpensive.It’sshippedtotheshowinawoodencrate,whichmustbeopened,removed,and returned when it’s time to pack up.Thisdutyisperformedbyextortionistsdisguisedasexhibitpersonnel.Expecttogreasetheirpalmswithcoldcashif youwantyourcratedeliveredpromptly. So you not only have to pay for acustom-designeddisplay,youalsohavetopayfortheupkeep.

A Stock Displayoffersmanyof thebenefitsof acustomunitwithout the cost.Displayhouseswillcustomizeoneof theirstockdisplayswithyourcompanynameandlogo,paintitinyourcompany colors, and add lights wherever youwant.Somestockunitscome inmodular sec-tions.Youcansimplyaddorsubtractsectionstofitanyexhibitspace.

The Self-Contained Unit is the least expensivedisplay.Asmallunitcanbecarriedbyonepersonandsetupinsideahalf hour.It’spre-fabricatedandlooksalotlikeeveryotherpre-fabdisplayat the show. Some customization is possible,butoftenlookstackedonratherthanpartof thedisplay.

Whicheverdisplay type you choose,maximizeyourtradeshowexperiencebymakingyourboothstandoutamidtheseeminglyvastbanalityof likedisplays.Whatmakesoneboothmoreappealingthanthenext?Whatdrawsqualifiedprospectstoyourbooth?

1�• Tricks Of The Trade Show 1�3

Attracting Traffic To Your Booth

You’ve spent a fortune preparing samples andprinting up literature, you’ve sent invitations toallyourcustomersandprospects,yoursalesstaff isprimedandreadytosmileandbobtheirheadslikesomanyceramicdogsonthebackledgeof a‘78Impala.Andnobodyshowsup.Noonestopsbyyourbooth.Why?Becausetheydon’tseeit.It’sdrabdecorisobscuredbyalltheglitzandglamourof theboothsaroundit. Youcan’t convertprospects intobuyersunlessyoufirstconvertbrowsersintoprospects.Thereareanumberof waystogetyourboothnoticedamidthechaosof coloraroundyou.Firstandforemost:addeyeappeal.Colorfuldisplays.Blinkinglights.Things that move.We used a simple revolvingmannequinwearingoneof oursnazzieruniformstoattractboothbrowsers.Thesimplemovementgrabbed attention.Then, our sales staff went toworkoncethebrowserstoppedatourbooth. Piquetheircuriosity.Usebigboldlettersacrossthefrontof yourboothtoaskaprovocativequestion.“Howmanytonsof sanddoesittaketoforgeoneAcmeCompressionTank?”Thistechniquemakesbrowserswanttoenteryourboothareatolearntheanswer. Or stageacontest.Abrowserfillsouta formwithname,companyandaddress(whichyouaddtoyourdatabase)towinaprize.“Guesshowmanystitcheswentintoourmodel’suniformandWINACOLORTV!”

SOME “DO’S AND DON’TS”Hereareafewmoresuggestionsthatcanhelpyoudrawmorecustomerstoyourbooth,andmakethemmorelikelytobuywhentheygetthere.

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DOputwhatever’snewwhereeveryonecanseeit. After“Where’sthebathroom?”,themostfrequentquestionatatradeshowis“What’snew?”Afterall,that’swhymostpeoplegototradeshows—toseewhat’snewintheindustry.Makesureyourlatestinnovationisrightoutfrontwhereyourprospectsandsalespeoplecanfinditquickly.DON’Tgiveawayafreegifttoeveryonevisiting

yourbooth.It attracts all the wrong people, the “booth

beggars”whohavenointerestinyourproductorservice.Theaimof apromotionistodrawtraffic,butselectedtraffic.What’sthepointingivingagifttosomeonewhohasalreadyfoundyourbooth?

DOofferagiftredeemablewithcoupon. Aboutamonthbefore the show,doamailingcontainingagiftcertificate,“redeemableonlyatourbooth.”Then,offersomethingof modestvalue(apearl-droppendantonagoldchainisgood—worksforwomen,andasagiftformen’swivesordaughters).Makeeachholdersignthecouponbeforeredeemingthegift.Thisholdstheprospectintheboothabitlonger,givingyoutimeforalittlesalespitch.

DON’Tdistributecatalogs. Tradeshowtrashbinsareloadedwiththousandsof dollars worth of literature. People visiting atradeshowboothfeeltheyshouldwalkawaywithsomething.Itgivesthemasenseof accomplishment,makesthemfeeltheyaregatheringtradeinforma-tion,thereasonforattendingtheshowinthefirstplace.Theyfullyintendtoreadthecatalogwhentheyreturntotheirhotelroom,oroffice. Butwhileintentionsarestrong,armsareweak.It’s tough enough dragging your body around atradeshowalldaywithoutlugging40poundsof literature,too.So,mosthitthetrashbinlongbeforetheyareread.

1�• Tricks Of The Trade Show 1��

DOdistributeliterature. Useinexpensivesingle-sheetthrow-awaymaterial,suchascirculars,envelopestuffersoradreprints.Offer to sendcatalogs toprospective customers.Haveabatchof catalogreturncardsonhand,readytobefilledout.Thisgetsyounamesandaddressesof hotprospectstoaddtoyourdatabaseandal-lowsthemtimetolookaroundyourboothwhileyouarewritingdowntheinformation.DON’T have too many “booth sitters” in yourboothatonce. If therearesevenoreightsalespeopleinyourbooth,andtrafficisslow,sendafewoutonbreak.Toomanypeopleintheboothreadytopounceonaprospectivecustomercanbeintimidating.DON’Tletyoursalespeoplesetupthebooth. Firstof all,it’stiring,andyouwantthemfreshwhenthecustomersstartrollingin.Second,theyprobablydon’thaveanytasteanyway,andtheboothisapttolookprettygrim.Bettertohavesomeonebackattheofficewiththetalent,taste,andtimedrawupadiagram—asimpledrawingof whatgoeswhere.Itwillsavehoursof workandaggravation,andensureatasteful,attractivedisplay.DOuseislandsandcountersinyourbooth. Theyaddinterest,helpsetoff specialitems,andtheyallowyoutomakebetteruseof yourlimitedspace.DON’Tuseplushfurnitureinyourbooth. Salespeopleloungingaroundareaturn-off toprospectivecustomers.Evenbrowsersdonotwishtobreakupaparty,andwillfrequentlypassbythebooth.Functional seating, yes.Butnot thekindthatencourageslounging.

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DOusecarpetingatyourbooth. It’susefulforestablishingboundariesand,whencolor-coordinated,canaddatouchof class.Also,it’seasyonthefeetforyoursalespeopleandpo-tential customers who have walked far on cold,hardfloors.

DON’Teatorchewguminthebooth. It looks unattractive and makes it difficult toconversewithprospectivecustomers.

DOwearauniform. Itdoesn’thavetobesillyoruncomfortable.Buteveryoneworkingyourboothshouldshareasimilarlook,whetherit’sthesameshirtandtiewithmatchingslacks,orsimplyacapwiththecompanylogo.Makeiteasyforyourprospectivecustomerstoidentifywho’swho.[SeeChapterEleven,“Uniforms”]

Followingthesefewbasicsuggestionscanensureyouof acrowdatyourbooth,andasuccessfultradeshowforyourfirm.

17

How to Establish Your Marketing

Budget

For sixteen chapters we’velookedatdesigningeffectivemarketingstrategies,creatingpotentpromotionalmaterials,andplanningshrewd

mediapurchases.Sohowmuchisthisallgoingtocost?Howmuchshouldyouspendonpromotingyourbusiness? It’sanoftaskedquestion.Thecorrectansweris:enough.Howdoyoudeterminehowmuchisenough?Itdepends.Onyourindustry,onyourcompetition,andwhatitisyouwishtoaccomplish. Ingeneral,therearefourwaystodetermineyourbudget:

♦Affordable♦Percentof Sales♦Shareof Voice♦Objective/Task(Zero-BasedBudget)

Affordable Method Thissimplymeansyouspendwhatyoucanafford.Thismethodisusedbymostsmallcompanies.Noclearideawhatthoseradiospotsorthatnewspaperadaresupposedtodofortheirsales.Noplan.Nostrategy.Nogood.Thisistheleasteffectivewaytouseyourlimitedresources.

Percent-of-Sales MethodThepercent-of-salesmethodrequiresdeterminingyoursalesfortheupcomingperiodandapplyingasetpercentageof thatsalesforecasttoadvertising

1�8 Naked Marketing

andpromotion.Howdoyouknowwhatpercentagetouse?Oneruleof thumb:tryandstayrightaroundtheindustryaverage.Mostindustrytradeassocia-tionspublishanaveragepromotionandadvertisingexpenditureasapercentof sales. Forexample,manybusiness-to-businessadvertis-ersspendaslittleastwoorthreepercentof salesonpromotion.Mostservicebusinessesspendfiveorsixpercent.Retailfirmsspendfarmore,asmuchas10%to20%of sales.McDonald’sspendsupto16%of grosssalesoncombinednationalandregionaladvertisingandpromotion. An industry that is extremely status- or style-consciousmayspendfarmore.Afashionablejeansmanufacturer,forinstance,mightspendasmuchas35%of salesonadvertising.Aperfumecompanymightsetitsbudgetat50%of salesormore. If youelecttousethepercent-of-salesmethod,be sure to base your advertising and promotionbudgetuponfuturesales.Let’ssayyourcompanyhas$3millioninsalesnow,butyourindustryisgrowingdramaticallyandyouthinkyoucanbea$4millioncompanywithinthenextyearorso.If yourindustryspends8%of salesonadvertising,budget8%of $4millionor$320,000foradvertising,not$240,000(8%of $3million). Therearealwaysexceptionstoanyrule,andthepercent-of-sales method is no exception to thatrule.Toincreaseyourshareof themarket,youmayneedtospendagreaterpercentof salesthanyourcompetition.Thisiscalled“buyingmarketshare.”Itmeansyoumayhavetospendfarmorethantheusualpercent-of-salestopromoteyourproduct. Orif youwanttointroduceanewproductorservice,youcan’tsimplybudgetapercentof sales.Therearen’tanysalesyet.Inthatcase,it’simportanttoexaminethetotalmarketforyournewproductorserviceandestablishareasonablegoalforyourshareof thatmarket.Then,usepercent-of-salesto

1�• Establish Marketing Budget 1�9

determine your base advertising and promotionbudget. Butremember,thisbaseisonlyabareminimum.Sincenoonehasheardof yournewproductyet,planonspendingasignificantpremiuminordertocreateawareness.Howmuchof apremium?Agoodruleof thumb:doubleyourpercent-of-salesbudgetintheintroductoryyear.

Share of Voice MethodThisisanotherwayof saying,“KeepupwiththeJoneses.” In other words, match whatever yourcompetitorsarespending. In order to avoid a competitor from “buyingmarketshare,”youmayneedtoboostspendingtomatchhis.If BurgerKingsuddenlyboostsspend-ingintheCedarRapidsmarketinanefforttogainshare,McDonald’sandWendy’swillboostspendingtoavoidlosingshare.

Objective/Task MethodToday, the Objective/Task method (sometimescalledZero-BasedBudgeting) iswidelyusedandfavoredbyacademiciansandmostlargecompanieswhopossessthein-housetalenttodeterminetheneedsandcostsof eachtask.Thetheoryis, “Toheckwithpast sales,what’s it gonna take to getwherewewannago?” Tousethismethod,firstestablishyoursalesgoals.Then, determine the tasks necessary to achievethosegoals(hence,thenameObjective/Task).Eachpromotional tool must be identified separately,thencombinedwithotherstodetermineanoverallbudget.(SeeChapter5) Forinstance,supposearetailstorewith$1millioninannualrevenuewantstoincreasesalesby10%.Itisagreedthat,tomeetthisobjective,thestoremustincreaseawarenessof itslocationtoresidentsinanewareanotcurrentlyservedbythestore.Thestore reviews its past advertising and promotion

1�0 Naked Marketing

budgetanddecidestofocusnewdirectmailandpublicityeffortstothisarea.Taskscanthenbesetandabudgetdeterminedasfollows: Prior Budget New Total

•radioadvertising $45,300

•newspaperadvertising 35,200

•productioncosts 6,500

•directmail(includingproduction) 7,600

•localizedpublicity 4,100

•research 4,300

•10%reserveforcontingencies 10,100 1,300

Total $101,400 $13,000 $114,400

Onebigdrawbackof theObjective/Taskmethodis that it requires far more skill, judgment, andresearchindeterminingtasksthandoesPercent-of-Salesmethod.Yoursmallcompanymaynothavethe talent among yourpersonnel todetermine abudgetusingthismethod.Andyoumaynothavethetimetodevotetothetask.Theextratimeandtalentneededmaybetoogreattomakeacommit-menttothismethod. If youdodecidetogoaheadthough,allowatleast10%of yourbudgetforcontingencies.Thisallows you to monitor your promotion effortsthroughouttheyeartoseeif theobjectivesarebe-ingmet.Then,if theyarenot,orif theyarebeingoverachieved,youcanadjustthebudgetupwardordownward within the limits of this contingencyreservefund.Thefundisalsousefulformeetingspecialcircumstances,suchasachangeindemand,aneedtocounteracompetitor’spromotion,ortosimplyimplementanewpromotionaltactic.

18

Summary

If you’re the type of reader who turns tothelastpagetoseehowthestoryends,you’vequicklyarrivedatthisfinalsection.You’vealso

missedthegutsof thestory,whichisthetruemeatof marketing. Whilemarketingdoesnothavetobedifficultormysterious,itisnotreductive;itcannotbeboileddowntoafewglibandeasypointsorphrases.Mar-ketingisan“attitude.”Anattitudeof thoughtandcreativity,strategiesandtacticsthatrequirelearningandpractice.Thisismarketinginallit’snakedglory,thedevelopmentof anattitude,amindset,awayof thinkingaboutyourbusiness.Itisthemessagethisbookhastriedtoinspire. If youhaveskippedtothischapterlookingforanending,Icanonlyofferabeginning,arecapof the “attitude” of Naked Marketing. Here goes:Conductsomeprimaryquantitativeresearchata95% confidence level to determine demograph-icsandpsychographicsof yourtargetbasewithinquintile subsets to optimize your objective-taskbudget.Gotthat?Now,createabalancedmixof compellingpromotionsoptimizedbynetrevenueusingmediadesignedtopenetrateallpossibletargetmarketsfortheleastcost. If youunderstoodallthat,youdon’tneedthisbook.If it’samysterytoyou,don’tfeelalone.Thetendencytoturnmarketingintomystifyingmumbojumboleavesmanygraspingformeaning.Let’sgetdowntothebareessentials.If youremembernothingelsefromthisbook,rememberthis:Marketingistheabilitytofigureoutwhoyourcustomersareandwhattheywantsoyoucangiveittothem—better,

1�2 Naked Marketing

faster,cheaperthanyourcompetitors.Thisistheheartof NakedMarketing. There’sanoldmarketingmaximthatsays“50%of alladvertisingiswasted.”Don’tbelieveit.It’salotmorethan50%.Traditionalmassmediaadvertisingisamonologuehopingtoaffectapassiveaudience.No wonder more than half of all advertising iswasted.It’samazingit’snotmore. Imagineforamomentthatfullyhalf of allthetelevision viewers who saw a Ford Motor Com-panycommercialactuallyboughtaFord.Or,wereeven interested inbuyinga car at all. Imagine if McDonald’s actually sold a cheeseburger tohalf thefolkswhowatcheachof theirtelevisioncom-mercials.Itdoesn’thappen.FordandMcDonald’sarehugecompanieswithhugemarketingbudgets.Theycanaffordtheinefficienciesof massmediaadvertising.Yoursmallbusinesscan’t. Thesecretistoknowyourcustomer.Segmentyourtargetastightlyaspossible.Determineexactlywhoyourcustomersare,bothdemographicallyandpsychographically.Matchyourcustomerwithyourmedium.Chooseonlythosemediathatreachyourpotentialcustomers,ANDNOOTHERS.Reach-inganyoneelseiswaste. Forexample,withthevastarrayof newmediatoday,audiencesegmentationiseasierthaneverbe-fore.Asyndicatedcabletelevisionshowmayappealtoalimitedniche,butitjustmaybeanichethatisidenticaltoyourtarget.Trademagazinesandhobbymagazinesappealtoverysmallgroupsof peopleof virtuallyeveryethnicorlifestylesubdivision.Somedirectsalesandresearchservicescanevenpredictthe buying habits of families city block by cityblock.AndtheInternetisviewedbyanybodyandeverybody,fromacrossthestreetandaroundtheworld,withnewsgroupsandsearchenginesthatcanpinpointyourtargetaudienceinacybersecond.

Summary 1�3

Thesemediahelpyoumaximizeeverymarketingdollar,firmlyestablishyourmarketniche,andavoidthatwasted50%. If you’renotthetypeof readertosneakapeakatthestory’sendandyou’vereadthisbook,youshouldnowhaveanunderstandingof thisprocessof marketing.Researchyourcustomers;establishyour identity; plan your marketing strategy; andimplement tactics which will return the greatestnet revenue.That’s all there is to it.Nomysteryaboutit.Younowpossessthetoolstobuildyourbusiness. And if it’s true that50%of all advertising iswasted,you’vejustimprovedtheodds.

GlossaryBackward ChannelingReversing theflowof materials through thedis-tributionchannel,withtheconsumerasproducer.Recyclingisanexampleof backwardchanneling.Theconsumerproducestrashandrecyclesit“backward”throughthedistributionchannelsothatitcanbemadeintousefulproducts.

BlueprintTerm used in offset lithography to describe aphoto-printusedasafinalproof.Alwaysfoldandassembleittoshowhowthefinishedprintedpiecewilllook.See“VanDyke”

BlurbA brief commendatory publicity notice, as in anewspaper.

BodyThemainportionof thelayoutorprintedform,asopposed to theheadline, sub-headings,photocaption,ortagline.

Boutique AgencyAnadvertisingagencyspecializinginone,orperhapstwo,of thefivemajorfunctionsof afull-serviceagency:media,research,graphicdesign,copywriting,orstrategicplanning.

CampaignSimilaritybetweenoneadvertisementandanother.Thiscouldmeantheconsistentuseof thesamespokesperson (the Maytag repairman), the samedemonstration(adropof DawnDishwashingLiq-uiddispersinggrease),thesamewords(“AmericanExpress,don’tleavehomewithoutit.”),orthesame

1�� Naked Marketing

sound (the musical percolator which advertisedMaxwellHousecoffee).Agoodcampaignusesabigideawhichillustratesthekeybenefit.Itpossessesanattitudewhichbecomesthepersonalityof thebrand.Inshort,agoodcampaignsellsproduct.

Chromalin or Chromalin ProofAfacsimileof a full-colorprintedpiece,createdchemically (from chromium... hence, the name),used todetermine the accuracyof colors in theprintingprocess.

Collateral MaterialAllthatothercoolstuff yougetwhenyouspendmoneyonadvertisingorpromotion.Themediasalesrepsoffercollateralmaterials—reprints,posters,orbaseballcapsandotherfreegifts—asincentivestochoosetheirmedia.

CompetitorsThebadguys.Othercompaniessellingproductsorservicesinferiortoyoursthatyourcustomersarelured, cajoled, coerced, orotherwise tricked intobuyinginsteadof buyingyours.

Creative DirectorAt an advertising agency, the person in chargeof allaspectsof thecharacterandqualityof theagency’sworkforitsclients.Thecreativedirector’sbackgroundismostfrequentlyeithercopywritingorartdirection.

Cross MerchandisingDisplayingtogetherthoseproductswhichmaybeusedtogether.Supermarketsplacethepeanutbutternexttothejelly,thedipwiththechips,thesaladdressingsintheproducesection.Hobbyretailershavealltheirmodelrailroadtrainsandaccessoriesinoneareaof thestore.Cyberspace

Glossary 1��

Amediumof communicationbetweencomputersat often distant locations. A New Age mediumrequiringnew strategies andanewapproach formarketers.See“WorldWideWeb”

DoodadAproduct.See“Gimcrack”

EntrepreneurAn individual with enough skill, audacity, andpluck toorganize,manage, and assume the risksof abusinessenterprise.

FarmingGrowingsalesfromexistingcustomers.

FlightingConcentratingyouradvertisingintobursts,withahiatus (noadvertising) inbetween. Inbroadcast,youmightrunyouradsforfourweeks,thenbeoff theairforfourweeksbeforerepeatingtheads.Inprint,it’sskippinganissueortwobeforerunningtheadsagain.

Forward IntegrationAcompanyseekingownershipof itsdistributionsystem.Forexample,amanufacturermaybuyup(orstartup)retailoutletsforitsproducts.

Four I’sTheprocessof creativity:Information,Incubation,Inspiration,andImplementation.

Four P’sThesearethemarketingvariableswhichinfluencethelevelof customerresponse.Theyinclude:Product,Place,PromotionandPrice.Eachvariablehasseveralsub-variables.Quality,features,nameandpackagingareallProductvariables.Discounts,creditterms,andallowancesareallPricevariables.Andsoon.Frequency

1�8 Naked Marketing

Thenumberof timesyouraudiencehearsorseesyourmessage,onaverage.Repetitionaidsretention,so frequency makes your message better-remem-bered.

Front LoadingSpendingthelion’sshareof yourmediabudgetintheearlystagesof youradvertisingcampaign.GewgawAproduct.See“Doodad”

GimcrackAproduct.See“Widget”

GizmoAproduct.See“Gewgaw”

GravureHighqualityreproductionusuallyonrotarypresses(also called rotogravure). High cost of printingcylinderslimitsgravuretolongruns,likemailordercatalogsandSundaysupplements.

Gross Rating Points (GRP)Reachtimesfrequencyequalsgrossratingpoints(RxF=GRP).If yourmessageisreceivedinthreeoutof fivehomesinyourmarket,reachis60;if eachhomereceivesyourmessageanaverageof twotimes,thefrequencyistwo.60x2=120GRP’s.

HeadlineEmbodiesthemainsellingpointof youradvertise-ment.Aheadlineisreadfivetimesmoreoftenthanbodycopy.

Home PageThe first page of your web site, the first one auserseeswhenvisitingyourcompany’saddressincyberspace.

Glossary 1�9

HuntingIncreasingsalesbyfindingnewcustomers,ratherthansellingmoreproductstoexistingcustomers.

Iambic PentameterAformof writingconsistingof fivemetricalfeet,eachfoothavingashortsyllablefollowedbyalongsyllable,oroneunstressed syllable followedbyastressedsyllable.Usedalmostexclusivelyinallof WilliamShakespeare’swritings.

InternetAmediumof communicationbetweencomputersat often distant locations. A New Age mediumrequiringnew strategies andanewapproach formarketers.See“WorldWideWeb”

ImagePerception of your product or company amongformer,current,andfuturecustomers,employees,vendors,andthegeneralbusinesscommunity.

LayoutAroughsketchof whattheadvertisementwilllooklike.Sometimescalleda thumbnail sketch.Afterapprovalatthisstage,amorecomprehensivelayout,calledacomp,willbeprepared.

LetterpressOldestandmostversatilemethodof printing,al-lowingchangesuptothelastmoment.Usedmostoftenbynewspapersandsomemagazines.

LithographyOftencalledoffsetbecausetheimageisfirstprintedonarubberroll,thenoffsetontopaper.Combina-tionof goodqualityandlowplatecostsmakeitattractiveformanymagazines.

180 Naked Marketing

MarketingThesatisfactionof needsandwantsthroughthesaleof yourproductsorservices.

MechanicalFinal assembly of the illustration, headline, andbodycopypriortoprinting.

Mission StatementDefiningyourbusinessintermsof yourcustom-ers,youremployeesandyourbusinessphilosophy.Thestatementanswersthequestion: “WhyamIinbusiness?”

MystiqueAnairorattitudeof mysteryandreverence sur-roundingsomething.Thebewildermentcausedbymarketinggurusunabletoexplainthefundamentalsof theircraft.

Name AwarenessTheabilitytoachievetop-of-mindresponseamongyour target customers.Whenaskedwhichbrandcomestomindinyourproductcategory,prospectsnameyourproductfirst.

Net Revenue ProjectionTheprofit(orloss)projectionof eachtactic.De-rivedbydeductingcostof goodsandthecostof thetacticfromtheestimatedadditionalrevenuethetacticwillgenerate.

Objective TaskOnemethodof determiningyourmarketingbudget.Define themarketingobjectives, assign the tasksnecessary to achieve the objectives and sum thecostsof thetasks.

Percent-Of-SalesAnothermethodof determiningyourmarketingbudget.Determinesales foragivenperiod(usu-

Glossary 181

ally one year) and assign a percent of sales tomarketing.

Point Of Purchase (POP)Promotionmaterialplacedon,at,orinretailstores.Mayincludebanners,posters,streamers,displays,signsorracks.Anyadvertisingmaterialatthepointwherethepurchaseismade.

Post Purchase PreferenceTheconsumer’slevelof satisfactionordissatisfac-tionfollowingthepurchaseof aproductorserviceleadingtobrandpreference.Satisfactionisafunc-tionof expectations and theproduct’s perceivedperformance. If product performance meets orexceedsexpectations,thecustomerwillprefertheproductwhenmakingfuturepurchases.

Post ScriptAbrief sentenceor twoappended to a letterorarticle.Usuallyreadmorefrequentlythanthebodyof theletteritself.

Primary ResearchResearchperformedbyyou,yourself.Thatresearchwhichcannotbefoundinthelibrary,ontheInternet,inbooks,magazinesornewspapers.Inmarketing,primary research consists principally of askingcustomersandprospectswhat theywant. Itmayalsoincludewhattheywatch,whattheyread,whattheylistento.

PsychographicsThepsychologicalfactorswhichseparateconsumers.Theseincludelifestyleandpersonalitydifferences.People within the same demographic group canexhibitverydifferentpsychographicprofiles.Termslikeyuppie,jet-setter,gayandstraightarealllife-styledescriptions.Marketerstrytomatchlifestyleandpersonalitywhencreatingabrandimage.For

182 Naked Marketing

instance,Marlborocigarettesappealprimarily tomenwhoenvisionthemselvesindependent“cowboy”personalities.VirginiaSlimsappealprincipallytosophisticatedwomen.

PublicityEditorialcopyinthemediawhich,unlikeadvertis-ing,hasnocost.Becauseitispresentedinthepressasastory,italsohasmorecredibilitywithviewersthanpaidadvertising.See“Blurb”

Q,S&PQuality, service and price. Successful companiesdeterminewhichtwooutof thesethreetheywilloffertheircustomers.Highqualityandexceptionalservicejustifiesahigherprice.Alowpriceisneces-sarywheneverthequality is inferiororservice issubstandard.Anycompanythatfailstoofferatleasttwooutof thethreewillsoonbeoutof business.Likewise,anycompanythattriestoofferallthreewillalsosoonbeoutof business.

Quintile AnalysisCategorizingfivetargetmarkets(usuallygeographicareas)bysalesvolume:heavyusers,higher-than-aver-ageusers,averageusers,lower-than-averageusers,andnon-users.Quintileanalysisof abeerbrandshowsheavy consumption in the South and Southeast,higher-thanaverageconsumptionintheNortheast,averageconsumptionintheMidwest,lower-than-averageconsumptionintheSouthwest,andnon-consumptionintheNorthwestandWest.

ReachThe percentage of different homes (or people)exposedtoyouradvertisingmessage.If yourmediaplan “reaches”4outof every5homes, it has areachof 80.

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ScreenFormerly called silk screen because the printingstencilwasmadeof silk.Providesbrilliance anddepthof colorforshortruns.Especiallysuitedforbillboardsandtransitadvertising.

Secondary ResearchUsingresearchcompiledbyothers.TheInternetofferssecondaryresearch.

SegmentationTheprocessof dividingyourprospectsandcustom-ersbydemographicorpsychographiccriteria.Forexample,segmentingyourtargetmarketbymaleorfemaleusers,heavyusersorinfrequentusers,etc.

Share-of-VoiceAmethodof determiningyourmarketingbudgetbaseduponwhatyourcompetitorsarespending.

Suggestive SellingSuggestingadditionalitemstocurrentcustomers.Offeringaccessories,warrantiesorservicecontractswhensellingyourprimaryproductorservice.

Target AudienceThosepersonswithwhomyoumostwishtomakecontact,yourprimaryprospects.Yourtargetmaybedefineddemographically,psychographically,orboth.

Target Rating Points (TRP)Reachtimestargetpercenttimesfrequencyequalsgrossratingpoints(RxT%xF=TRP).If yourmessage is received in fouroutof fivehomes inyourmarket,reachis80;if justtwooutof everytenof thosereachedareyourtargetaudience,targetpercentis20%;if eachhomereceivesyourmessageanaverageof threetimes,thefrequencyisthree.80x20%x3=48TRP’s.

18� Naked Marketing

TestimonialsTestimony given by another person in praise orsupportof yourproduct.

Theory XAnauthoritarianmanagement approachwhere itisassumedemployeesdislikeworkandneedfirmdirectionandcontrol.

Theory YAmanagementapproachwhereitisassumedem-ployeesaremorecommittedtothecompanyanditsmissionif theyparticipateinthedecision-makingprocess.

Theory ZAcombinationof TheoriesXandYwhereem-ployeesaregivenattainablegoalsandaskedtoofferplansdesignedtoachievethosegoals.

Total ApproachAcombinationof imageadvertisingandproductadvertising.Usingconsistentdesignelements,mood,ormessage inyour advertising to create abrandimagewhilepromotingspecificproducts.

TypeThe style of lettering used in an advertisement.Therearehundredsof typestyles.Somehaveserifs,shortlinesonthetopsandbottomsof letters.(Thisisaserif typestyle.)Othertypestylesaresansserif (This is sans serif).

Van DykeAphotographicimage,usuallymadeoninexpensivephotopaper,usedasaproof fromanegative.See“Blueprint”

Web SiteYour company’s address in cyberspace whereprospectivecustomerscantapintoyourorganiza-

Glossary 18�

tionforinformationaboutyourcompanyanditsproducts.

WidgetAproduct.See“Gizmo”

World Wide WebTheportionof theInternetusedtodisplaytext,graphics,audio,andvideoclips.Accessedthroughcomputershookedbytelephoneline,DSL,Ethernet,orT-1linesintotheInternet.Thisrelativelynewmediumoffersawholenewmeansof marketingproductstocustomersworldwide.

Author Biography

Robert Grede, BA, MBA,isagrad-uateof DePauwUniversityandTheGoizuetaSchoolof BusinessatEmoryUniversity. After12yearsintheadvertisingindustry,workingwithpremiermarketerslikeMcDonald’s,Procter&Gamble,andUnionCarbide,Gredeem-barkedonanentrepreneurialpath,foundingTheGrede Company, consultants in marketing andstrategicplanning.Clientsrangefromstart-upop-erationstoFortune500firms. Mr. Grede taught marketing and entre-preneurial management at Marquette Universityformanyyears,isasyndicatedcolumnistandfre-quent contributor to magazines, and author of theforthcoming5Kick-AssStrategiestoReachtheNextLevel(SourceBooks). A familiar face on television and radiotalk shows, Mr. Grede speaks on the subject of marketing and strategic thinking at civic organi-zations,andcorporatevenues.www.thegredecom-pany.com

E-Books TheSalesManagersGuidebook TheRetailersGuidebook DevelopingAStrategicMarketingPlan–ASelf- GuidedWorkbook HowToBeYourOwnAdvertisingAgency(For TheSmallBusinessOwner)

Viewchapterlistingsandsampleexcerptsonlineat:www.thegredecompany.com

Print Books NakedMarketing–TheBareEssentials (PrenticeHall) NakedMarketing–TheBareEssentials,2ndEd. (MarquetteUniversityPress) 5Kick-AssStrategiestoReachtheNextLevel (SourceBooks,2006)