Basic Marketing

Location-based Social Media

2011-03-29T15:01:00.001-05:00

Foursquare headquarters

Small business marketing ideas that hit the spot

Location-based social networking draws upon the power of GPS to enable users to share their lo-cation through their portable devices. Typically, communications stem from a mobile email or text message. Quite frequently, people use these tools to enhance their social lives, as they can not only read about new places to go, but also track where their friends are at any given time. In fact, many people use the functionality of location based social media to spontaneously get together with friends and busi-ness colleagues.

The fast growth of web phones users has expe-dited the growth of location based social media. People who have purchased these gadgets want to take full advantage mobile phone apps that will as-sist them with their day-to-day life. People with web phones, of course, want information when they are in an unfamiliar location. Whether they seek the find the nearest coffee shop to a given location, or reviews of a restaurant, details “on the go” are al-ways quite valuable. There is a clear power and allure to relevant, real-time information.

Another reason people have gravitated to these location-based social media tools is that they enable them to combine the real and virtual worlds. For example, Foursquare enables people to compete in a competition to win “badges” at a favorite club or restaurant. When you check into a location multiple times you can earn a badge or other recognition. Certain users can also earn the title of mayor. Many have gravitated to this network because they enjoy the added benefit of playing this game that is unique to Foursquare. Instead of posting something about what they did last night, they now have the opportunity to post about what they are doing right now – and see what others are doing in the same location.

Foursquare also allows users to add “tips” to various locations including recommendations or even random thoughts. When you are near a Fours-quare location, you can read other people’s tips. This advice allows people to find new establish-ments that match their interests. Of the current, dif-ferent location based social media tools; Foursquare is among the most popular. In fact, according to Inc. magazine article published July 8, 2010, Fours-quare is adding 15,000 new users every day.

However, Foursquare is not without its compe-tition, take Whrrl, for example. Whrrl is similar to Foursquare in that it offers reviews of various busi-nesses including restaurants, stores, coffee shops etc. Whrrl users can check out these reviews via their web phones. This content is very similar to what is typically seen on Yelp, except all of the re-levant details are displayed on Google maps for easy navigation. Thus, Whrrl allows users to get details about different businesses simply by clicking on them.

Whrrl differentiates itself from Foursquare, however, by allowing users to add photos as well as text with notes. This functionality gives the user the ability to tell stories. Whrrl also offers users degree of control over their privacy, as Whrrl lets users dif-ferentiate between friends and “trusted” friends. Another interesting aspect about Whrrl is that you earn points and rewards when other people save and complete your recommendations.

GPS is a Big Marketing Idea
Loopt is another application, which actually turns your mobile device into a compass. You can see the locations where your friends have visited, along with their comments and suggestions. Loopt also can be set to alert you when your friends are near your location. Loopt is a bit different from the other tools in that it offers live tracking, so users don’t have to constantly check in and announce their location. Users also have a close degree of control over how much information they want to make public.

Not surprisingly, businesses have found that they can learn a great deal about customers and their buying habits from location based social media. As a result, experts believe that these location tools will perhaps be even more valuable to businesses than regular social networking. Additionally, when people share where they are, they are publicly divulging details about products and services that they use. This gives businesses a potentially massive amount of viral exposure.

Many of these location-based social media networks are offering special programs to business-es. For example, businesses can arrange a formal partnership to attract new customers. Once you have determined who is frequenting your establish-ment regularly, you can use these tools to offer re-wards and discounts as a further incentive to good customers.

Inc Magazine recently addressed the issue of how businesses can get involved with these social media tools in an article entitled “How to Use Loca-tion-Based Social Networks for Your Business.” First of all, they suggest that companies should fol-low the lead of big brands that are spending money researching what will be hot. For example, Star-bucks was an early adopter of Foursquare. If your company notices big businesses following a certain trend when it comes to location based social media, you should stand up and pay attention.

The Inc Magazine article also points out how business owners can directly get involved in their marketing via location based social media. Author Lou Dubois writes, “Start using the tools as an indi-vidual, monitor what customers and users are saying about your business. Then, and only then, should you start using the services for your business, as you'll have a much clearer understanding of what you need.”

When business owners read comments and tips about their establishments, it can give them unique insights into how to provide more of what custom-ers want. Further, they can respond to questions or complaints on the network, and customers will like-ly appreciate the interaction. Foursquare actually goes so far as to offer a special analytics service that allows companies to see the demographics of whom is checking in to their establishments. Obviously, this is a level of personal detail about customers that is highly sought after by businesses.

According to Rob Reed, an industry blogger and founder of MomentFeed.com, a company that helps companies use location-based services for marketing, is quoted as stating, "Location is grow-ing so much faster than social media ever did. One year from now, we'll see location jump the equiva-lent of three years social media time." In short, the growth for location based social media is simply dramatic. Clearly, this is just the beginning for lo-cation based social media, and odds are this growth is only likely to continue.

On June 29, 2010, the New York Times pub-lished an article called “Foursquare Raises $20 Mil-lion in Venture Capital.” The article explains exactly how fast Foursquare has been expanding its out-reach to businesses, which now include Starbucks, Zagats, and The New York Times including over 10,000 others. The article goes on to explain, “Hy-per-local is where the next big wave of mobile ad-vertising opportunity is, because it ties into that be-lief that location is going to be a big enabler for marketers to more deeply engage with their custom-ers.” The idea behind hyper-local is that people will become more and more involved in reporting their ideas by writing tips and content and, in the process, they will reveal a well of detail regarding their buying habits and buying patterns.

Clearly, the tremendous investments that are currently being made as well as the huge amount of interest in location based social media means that these applications are here to stay. As more and more users adapt web phones, use of these tools will only continue to grow. With this popularity curve, there also is a unique opportunity for companies to promote their businesses and also learn valuable information about their clientele. Be sure to read the more detailed profile of Foursquare.

A Short History of YouTube

2010-08-30T09:32:00.002-05:00

The Rise of YouTube

Many people simply can’t imagine a time without YouTube, but the fact is that this video-sharing site has only been in existence since early 2005. In just a few short years, YouTube has gone from newcomer to dominator. In the realm of video-sharing, few sites can even come close to matching YouTube. Like its parent company Google, YouTube dominates on the web.

YouTube was designed to be a place where people are free to upload content. Much of the content that is loaded onto YouTube’s website is material from copyrighted television and movie programs. This aspect of the site has received a great deal of attention. However, copyrighted material is far from being the only type of content on YouTube. In fact, the scope and variety of content that is showcased on this website is nothing short of staggering. This is due, in part, to the fact that YouTube is available in fourteen different languages.

People are using YouTube for everything from promoting their own products and video blogging to showcasing their independent films and animations. YouTube is even used by major media outlets and news organizations to promote their content. By 2008, YouTube had agreements with companies such as CBS and Lions Gate Entertainment where television shows and films could legally be posted to the site. As of 2010, YouTube has formed over 10,000 content partners in total from around the world.

YouTube was developed and launched by former PayPal employees Steve Chen, Chad Hurley and Jawed Karim. Chen and Karim were both from a computer science background and developed the site in response to problems they had experienced involving sharing videos over the web. Interestingly, Steve Chen was also one of the first employees at Facebook, but left the company to pursue his YouTube plans. Chad Hurley was instrumental in the creation of the company’s logo.

The real breakthrough for YouTube and its young founders came in late 2005, when they were able to secure over $11 million in funding from Sequoia Capital. Sequoia Capital is the same venture capital fund that has played a role in numerous Internet start-ups, including PayPal and LinkedIn.

After several months of work, YouTube officially launched a beta site in May of 2005. The rate of growth for the site was nothing short of phenomenal. Within just one year, YouTube was experiencing an impressive 100 million videos being viewed each day. Even while it was still a new website, the potential of YouTube was clear to many people. Mashable.com wrote an article in 2005 entitled, “YouTube-The King of Video Sharing?” Quoting Nathan Weinberg of Inside Google, Mashable stated, “YouTube has moved ahead of Google Video in terms of popularity…But its not just Google-these guys have moved ahead of everybody!” Even in 2005, industry insiders realized that Google was going to be the dominant player in video searches and video downloads.

Part of what makes the YouTube story such a fascinating one is how website grew with such unprecedented speed. By 2006, it was a dominant player in the video download game. In October 2006, Internet giant Google acquired YouTube for a whopping $1.65 billion dollars, which was paid in Google stock.

With the help of Google, YouTube has found yet more growth. By 2010, a remarkable two billion videos are served each and every day. In fact, the amount of content that YouTube has at its disposal is likely to play a significant role in the development of Google TV.

There are many video-sharing sites on the web, but YouTube quickly managed to distinguish itself. Part of what makes YouTube somewhat unique is this wide spectrum of diversity. Today, YouTube is used for just about every reason imaginable. You can quickly find videos from media giants like CBS or children’s piano recitals for grandparents and relatives to watch worldwide.

YouTube also began providing a method through which users could profit from their videos. As of 2007, YouTube has allowed users to place advertisements in and around the videos they upload. The money from these ads is then split between YouTube and the user. In 2008, Brian Stelter at The New York Times wrote an article entitled, “YouTube Videos Pull in Real Money.” This article explains how people are able to make a living through adding advertising to the YouTube videos they produce. Buckey writes, “One year after YouTube, the online video powerhouse, invited members to become ‘partners’ and added advertising to their videos, the most successful users are earning six-figure incomes from the website.”

Of course, the site has not been without its controversy. On one level, the site has been attacked for not doing enough to combat copyright infringement on the site. The issue of copyright on YouTube, of course, reached a fevered pitch when Viacom sued YouTube. Not surprisingly, this resulted in a very messy legal battle.

Google, the parent company of YouTube, even went so far as to state that Viacom had uploaded large volumes of its own content on purpose. Wired Magazine covered this issue in a March 18th, 2010 article called “Accusations Fly in Viacom, YouTube Copyright Flight.” The article includes a quote from Google stating, “’Viacom alone has uploaded thousands of videos to YouTube to market hundreds of its programs and movies, including many that are works in suite,’ Google wrote. ‘Given the broad scope of marketing, YouTube could not be charged with knowledge of infringement merely because it came across a video that was clearly from a professionally produced television show or movie.”

Yet this is only one aspect of the legal problems that YouTube has faced. Several countries, including China and Pakistan, have shut down the site for a variety of political reasons. However despite its problems, YouTube has grown seemingly unabated.

YouTube realized the high-definition would be an important aspect of the site, and with this fact in mind has slowly moved the site in this direction. In November 2008, 720p HD was added as an option for videos and full 1080p quality was added about one year later. By 2009, some 3D content was made available as well.

YouTube Becomes Dominant

As of 2010, YouTube held an Alexa ranking of 3rd of all sites on the Internet. Part of this success stems from the sites incredible 23 page views per visitor. YouTube visitors average about twenty minutes on the site per visit. These incredible numbers are further amplified when one considers that YouTube’s parent company is Google, whose Alexa ranking is number one. Thus, with the acquisition of YouTube, Google effectively gained the spot of both number one and number three of all Internet web destinations.

Few sites have ever experienced the rate of growth that YouTube has experienced and continues to experience to this day. Today, billions of videos are watched daily on the site, and there seems to be no stopping YouTube’s growth. The simple fact is that YouTube has become a vital part of many people’s lives. The site is truly nothing short of a global phenomenon. In recent years, YouTube has been taking serious steps towards monetizing the site, and there is little doubt that parent company Google will likely earn back far more than it initially invested.

More on Social Media

Foursquare: The Next Big Thing?

2010-05-28T12:43:00.001-05:00

How Foursquare Can Bring You Customers

Foursquare is a social networking application available on the iPhone, BlackBerry, Android, and webOS mobile phone operating systems. According to Dennis Crowley, the company co-founder, “Foursquare is a little bit of everything – a friend-finder, a local city guide, and an interactive mobile game.” When a patron visits your brick and mortar business, the GPS capabilities of the phone allow the user to tell their friends where they are. As patrons “check-in” at your business through the application, they are awarded points and badges which are displayed on their profile, sent to all their friends, and posted on the front-page of Foursquare. But, it's more than just a GPS. It's also a competitive game, with players vying to be the most regular of your customers. For this reason, Foursquare can encourage repeat visitors. The patron who visits your store the most often in a two month period becomes “Mayor” of your business in the Foursquare universe. For some, these badges, titles, and achievements become addictive incentives to return to your venue. If you want to learn how to use this powerful marketing system to draw business, read on!

Why Foursquare Works

Foursquare encourages people to explore their neighborhoods and visit your business by rewarding them for doing so. As the owner of a business, you can use Foursquare by offering discounts or free items to loyal customers or first-time visitors. Essentially, this offers businesses a free-to-implement loyalty program. Additionally, when visitors using Foursquare enter your business, you will get demographic information about them.

According to the Wall Street Journal, Foursquare had over 750,000 users in March of 2010. By the first of May, they hit the million user mark. On the first of April, Foursquare had 22 million checkins. By the first of May, Foresquare had over 50 million checkins. That's right, Foursquare seems to have doubled its checkin rate in a month.

“We built this light game on top of the service and people are really responding to it,” Crowley said. “We’re learning from that and we will continue to add features.”

According to Crowley, Foursquare is primarily engaged in attracting customers and encouraging venues to participate in the game. Currently, over 1,500 venues offer Special promotions for first-time or repeat customers via the Foursquare app. From the WSJ article,

“Brooklyn photographer Kristina Hill, for example, checks in at her local coffee shop Roots Café every morning. And nearly every morning she spies Roots Café’s Foursquare mayor, currently New York University graduate student Travis Helwig, also grabbing his caffeine fix. Hill said she now finds herself stopping for coffee just so she can check in. She vehemently wants that mayorship, and she intends to get it no matter the coffee-cost.”

What local business could ignore a marketing tool that gets this kind of devoted attention?

AJBombers, a burger joint in Milwaukee, surely didn't. Using Foursquare, and by promising the coveted Swarm badge (requires 50 people to be checked in to the venue at the same time), the manager organized a big Sunday rush, increasing his sales by 110%.

Immediately, of course, all these users began tweeting that they had earned the Swarm badge. For the next three hours, anyone who checked in to the restaurant also earned the badge. Over fifty people who had never used Foursquare before checked in just to get the badge.

Adding Your Business

To be listed on Foursquare, start by creating an account for yourself (not for your business!). Fill out your profile page, including adding a picture and a biography. When people visit your business, they will see your biography listed as the manager of the venue.

Use the Manager's link to edit your venue's information
Next, search for your business to see if it's already been listed. One of your patrons may have beat you to the punch. If your business has not yet been listed, use the “Add Things” link on Foursquare. From here, you can select “Add a Venue.”

Step 1: Confirm your Business Information

Step 2: Create your Specials

Next, consider adding some Specials for Foursquare users. You'll be surprised how much business a little competition between users will bring you. There are currently four types of Specials you can add for your users.

Example Specials

Mayor Specials – Unlocked only by the Mayor of your establishment. The Mayor is your single most loyal customer in the past 60 days. Try “You're the Mayor! The Mayor gets extra-special treatment. All your drinks are free!”

Check-in Specials – These are unlocked once when a user checks in a set number of times. Try, “You've checked in ten times. You've earned a free ice cream cone!”

Frequency-based Specials – These are unlocked every x check-ins. Try, “Come in for a free coffee every six check-ins.”

Wildcard Specials – These can be anything you want, and they are always active. Try, “Come in and order a 'Foursquare' for a free soft drink.”

Converting Your Current Patrons into Foursquare Users

You can convert your current customers (who own a smart phone) into Foursquare members by advertising for Foursquare inside your business. The benefits work both ways. You let existing Foursquare members know that they can get benefits by frequenting your establishment, and you can encourage patrons to become repeat customers by signing them up on Foursquare and then hooking them with the Foursquare Specials.

Enhancing Your Visibility and Results on Foursquare

First, make sure your business's profile page is properly filled out. You want your business to look inviting to users. Foursquare makes it easy by allowing you to link your business info from other sites such as Yelp.

Use your Specials wisely. You want to make your Specials worth the trip for your customers. The race for Mayor between two or three regulars at your venue could bring you thousands of dollars that you would not have otherwise seen. Make the reward for Mayor worth it, and you'll make competition all the more fierce.

Optimize your visibility by properly tagging and categorizing your business. You want people looking to find you when they search for what you offer.

Organize a Swarm Party. In a Swarm, all of the Foursquare users in the area meet up at one venue and check in, hoping to get the Swarm badge, which requires 50 concurrent check-ins.

Use your existing social networks, like Facebook and Twitter, to introduce your patrons to Foursquare.

Keep it light. Patrons of your restaurant want to have a little fun. You don't have to be all business.

Guerilla customer service. Find out what your customers are saying about your business. And comment back. Let them know you care about the problem they're having, and that you're working to fix it.

Promote your Specials in-store. Contact Foursquare.com for official window decals. According to Foursquare.com, “We've seen venues promote their involvement with foursquare via Twitter, signs at cash registers and sidewalk blackboards. Go for it, and be creative! Also, we can help you market your Special to your customers by sending you official foursquare window clings.”

History of Foursquare

Foursquare was created by Naveen Selvadurai and Dennis Crowley after Google purchased Crowley's previous venture, Dodgeball, in 2005. After four years with Google, Dodgeball had made virtually no progress. Working within a mega-corporation, Crowley said, was just too much red tape for a startup company. Google dismantled the Dodgeball division in 2009, and Crowley was free to work on his next big idea. He would use all the things he learned from Dodgeball and the Google acquisition to make the next product better.

Currently, sources say the Foursquare project is worth between $60 and $70 million. Yahoo has been trying to acquire it for $125 million for some time. Rumors are that Crowley won't even sell the company at this price due to his experiences with Google.

If you have any doubts about the efficacy of their business model, according to the Wall Street Journal,

“Investors may also be enamored with the company because it’s not influencing, but possibly changing consumer behavior.”

Success Stories

AJBombers. A small burger joint in Milwaukee was the site of one of the first Swarm Flash Mobs. With a bit of creative marketing on the manager's part, the restaurant invited Foursquare users from across the Midwest to the establishment on a Sunday afternoon, and increased his sales by 110%.

Starbucks. According to a spokesperson from Starbucks, Foursquare enables Starbucks to “engage with our customers in unique ways by breaking down barriers of digital and physical worlds. Foursquare is another way for Starbucks to take the pulse of the experience in physical stores in real time and hear feedback from our customers.” Starbucks offers a custom “Barista” badge for users with more than five check-ins.

Wynn Las Vegas. The outgoing feeds of checked-in guests are monitored in order to cater to the wishes that guests might feel uncomfortable expressing to the hotel. If a guest has a bad experience at a restaurant, for example, it's possible to reach out to the restaurant manager, in real time, and fix the experience before the patron leaves. The Wynn is also utilizing high-end specials for its guests. For example, customers at the Blush Boutique nightclub can enjoy a free round of champagne.

Chicago Office of Tourism. This is an interesting success story. The City of Chicago utilizes Foursquare to encourage visitors and residents of the City to see Chicago's unique way of life and to unlock the culture and history of Chicago. Using an array of custom badges, Foursquare users can find hidden treasures in 77 different neighborhoods. Local city businesses have used the City's initiative to implement their own Foursquare business hubs.

If you don't register your business as a venue on Foursquare, you could be missing out on valuable new and repeat customers. Since it's so easy to do, why not register your venue now?

A Brief History of Facebook

2010-05-20T12:49:00.001-05:00

Facebook - Then and Now

It is difficult for most people today to imagine the Internet without the all-encompassing presence of Facebook. In just a few short years, Facebook has transformed from relative obscurity to a Website that is considered one of the most popular in the world. In fact, the Internet ranking system Alexa considers Facebook to be the second most visited website. Only Google now generates more traffic than the ever-growing Facebook.

Much of the Facebook’s success can be traced to the fact that it was seen as an alternative to such other social networking sites like MySpace. For those seeking an alternative, Facebook was a natural solution. There were numerous reasons that people were eager to switch over from MySpace. Facebook offered a smooth and organized interface, as opposed to MySpace, which many users found to be visually unappealing. Also Facebook tended to appeal more to adults: whereas, MySpace had the reputation of being for younger people.

Facebook was the brainchild of Mark Zuckerberg who developed the concept while at Harvard. In fact, the Facebook concept developed out of an early concept called Facemash. The Facemash concept was designed so that users could rank the attractiveness level of fellow Harvard students. However, in order to accomplish this feat, Zuckerberg illegally accessed Harvard’s computer network and took the necessary images.

Facemash was an overnight success. Yet, once Harvard officials discovered the site they immediate shut it down. Quite amazingly, all legal charges were dropped against Zuckerberg who also was given permission to remain a student at Harvard.

Zuckerberg, however, now knew that he was onto something and believed that his concept could be expanded. By early 2004, Zuckerberg was hard at work developing what would be called “thefacebook.” Thefacebook.com was launched by February 2004. Thanks in part to the word of mouth, news of the new website spread quickly throughout the Harvard student body.

Soon thefacebook had expanded to other colleges and universities. In fact, it is safe to state that the speed at which Facebook’s presence expanded in 2004 was quite remarkable.

Just a year later, Facebook was incorporated. Sean Parker was named as the company’s president, and operations were relocated to Palo Alto, California. Originally Parker was simply an adviser for Zuckerman, but as the site progressed, he brought his expertise on full-time as the company’s president. Sean Parker was a cofounder of the once highly popular music site, Napster. As a result of his time with Napster, Parker was very familiar with all things Internet and was quick to see the potential of Facebook.

Almost from the beginning, Facebook has been engulfed in lawsuits of various sorts. One high profile example comes from several Zuckerberg classmates who claimed to have had a hand in the development of the site. They claim that Zuckerberg stole their concept and violated a verbal agreement. There are reports that a settlement was reached between the parties.

Restricted access was a major part of the initial Facebook concept. While the website was still called thefacebook, as it wasn’t until 2005 that the Facebook.com domain was obtained, access was restricted to a handful of Ivy League universities. Slowly, more universities were allowed into the social networking site. Eventually a few of America’s largest companies such as Microsoft were included.

By May 2005, major press outlets such as the New York Times had begun to take serious notice of Facebook, running a promotional piece for the website stating, “The site is becoming ubiquitous at the 840 colleges where it is available.” By the time this New York Times article was written in 2005, Facebook had already had over 2.8 million registered users located throughout over 800 college campuses.

It was not until the fall of 2006, that the average person could join Facebook. Since that time, Facebook has nearly taken over the Internet and now dominates the social networking scene. Today, Facebook dominates social networking on the web with some notable exceptions. For example, there are regional exceptions as exemplified by Orkut in Brazil and Hyves in The Netherlands, among many others. Yet, there is no denying that Facebook is the dominant player in the global social networking game.

Facebook has had very little trouble finding funding over the years. Zuckerberg’s creation received its first major investor in the form of Internet giant Peter Thiel, founder of PayPal, who invested in Facebook in 2004. Since that time, Facebook has enjoyed a constant stream of investment.

The website’s actual value is clearly in the billions. Facebook walked away from a $1 billion dollar deal with Yahoo! in 2006. There have been rumors of additional negotiations with other parties that may have reached far higher offering prices. In fact, Forbes Magazine pointed out in December 2009 that estimates have determined that Facebook is worth about $11 billion. This figure is based on the amount of money that people are willing to pay for shares of the company.

By June of 2009, Facebook had done what would have initially seemed to be impossible; it had bested MySpace. MySpace was once the dominant player in social networking and had the muscle of Rupert Murdoch behind it. By 2009, reports were that Facebook had passed MySpace for total users. In fact, in June 2009, The Los Angeles Times wrote an article called “Facebook Dethrones MySpace in the US” which stated, “The Palo Alto, Calif., company had 70.28 million users last month, topping MySpace’s 70.26 million, ComScore said. Facebook’s users almost doubled from a year earlier, while MySpace lost 5%.” This trend of users leaving MySpace and switching to Facebook continues to this day.

What does the future of the site hold? Increasingly, there are concerns that Facebook may not be handling users privacy in an appropriate manner. A May 19, 2010 article in the Wall Street Journal entitled “Facebook Grapples with Privacy Issues” pointed out this growing concern. The article’s writer Jessica E. Vascellaro noted that people are becoming increasingly concerned about Facebook and its perception of privacy due to “embarrassing technical glitches that exposed personal data.” This article goes on to state, “The site’s privacy travails have rattled Facebook employees and put pressure on Mr. Zuckerberg, who has argued for years that its users should be more open with their information.”

Will these concerns over lack of privacy be the undoing of Facebook? This is impossible to say. But there is no denying this website’s growing power. Currently, the site has a half a billion registered members and is still growing on a day-to-day basis.

More on Foursquare and Social Media

What is Social Media Marketing?

2010-05-13T17:23:00.001-05:00

Social media marketing

A marketer’s guide to social media

What it is, what it’s not

Social media is a tool; it’s not a plan or a strategy. A hammer cannot build a house; it doesn’t know what you want to do; it’s dumb, you’re the smart one. Social media will not develop a marketing campaign for you, and it is definitely not a marketing initiative all by itself.

Social media is a communications channel, it’s not a message. Another communications channel, radio, has been around for almost 100 years, but it has never sold a single product - not one.

However, effective radio copy has sold billions of products.

Social media marketing is free, but it comes with a high price tag; it’s expensive in terms of time and resources. You will need to plan messages, develop key words, target your audience and learn from your mistakes – social media gobbles up time.

Social media messages are good for today, not next week. The channel has an ephemeral nature. A “tweet” is like direct response advertising, if you haven’t heard from the customer within three days of your tweet, it is unlikely you ever will. Social media constantly requires new, interesting content – out of sight, out of mind. To be successful in social media, you must begin to think of yourself as a publisher, as well as a marketer or business owner.

Social media marketing is different from traditional advertising and promotion, but it’s not better. It’s not worse, either. The two media choices provide different benefits. It’s a tool, remember? Hammer or saw?

But still, sometimes the best social media is a billboard.

There are two sides to every story

The ancient Greeks believed that the opposite of every great idea was equally true, so it is with Social Media - the great, new idea.

On one hand, it gives businesses new ways to succeed in the marketplace. On the other, it also provides new ways to trip and fall flat on your face. Your mistakes can now go “viral”.

Social media lets you gather your customers together and engage them in conversation, to build strong relationships. But it also provides that same opportunity to your competitors. They can become anonymous “fans” and join all your nice, friendly conversations. Additionally, your followers now have a method (thanks to you and social media) to talk to each other, to praise your company or to grouse and complain in a very public forum - your forum.

If you don’t like social media and feel some affinity for it; it probably won’t like you either. Find someone who likes social media to build your online relationships. If you don’t want to be at the party, people will soon see it and drift away. After all, there’s a reason the word “social” is in the title.

All of these are ideas that we will expand upon.

Product Innovation in Auto Insurance

2010-05-13T11:31:00.000-05:00

MileMeter Rethinks Auto Insurance

There is always opportunity to bring innovation to the marketplace - especially in long established markets. Surprisingly, however, it happens rarely. Perhaps that's because we stop thinking about products and services we know too well. A recent example is Red Box, who simply asked the questions, why do we need a store to rent movies? Do store clerks really add value to the rental transaction? Aren't customers generally interested in a handful of recent titles? The answers to those questions created a new business that has expanded across America.

Pay For Auto Insurance by the Mile

Why should all drivers pay for car insurance according to a fixed schedule, when the actual miles a that a driver accumulates each year in his car is a much better predictor of risk? Accross all age brackets, income levels, and geographical locations, the drivers who are on the road the least, are much less likely to have an accident than a road warrior.

Rethinking Auto Insurance

MileMeter is the first auto insurance company to use that idea to not only develop a product, but build a company around that idea. For drivers who add less than 12,000 miles per year to their odometer, the savings can be huge. And for MileMeter, these drivers are the safest, so therefore, the most profitable drivers for an auto insurance company. Safer drivers mean fewer claims.

How Will This Change Auto Insurance?

MileMeter currently is available only in Texas, but has plans to expand nationwide. How will competitors respond? BlockBuster ignored Red Box. Will Allstate ignore MileMeter?

Video Marketing

2010-05-10T08:50:00.002-05:00

Book Review: Get Seen

There are a lot of marketers who are resistant to video marketing. This is especially true of small business owners, which is difficult for me to understand. Video is (at this point) surprisingly effective in generating an audience. People love to watch TV, and many like to "see" and "know" the person behind a business or Website.

Small Business Owners are Naturals on Video

Successful small business owners are almost always "likeable". If they're not gregarious, they don't stay in business very long. If customers have a choice between two businesses, of equal quality, they'll choose the business with the owner or staff that they "like". If you have a successful business, I can assure you that people like you when they first meet you, and on all the subsequent occasions that they work with you.

Video gives you a chance to use that important business asset, "likeability" to generate more business. You don't have to sound like a newscaster, or movie star, just be yourself. Even more important, you get to talk about your favorite subject, your business, and how it serves its customers. You can demonstrate your knowledge in your subject field, and wax poetic about all the details in your field.

Get Seen, by Steve Garfield

I like this book for many reasons, it is comprehensive, detailed, yet easy to read. Garfield makes creating online videos seem like the easiest and most natural thing for any marketer to be doing. His book also shows how you can distribute your videos across multiple platforms and track your "views."

Right now, it is still possible to "get seen" with video marketing. A year from now, who knows? That's the way it is with social media, what works today, may not work tomorrow. Today, however, it's time to make a video.

Below is a link to the book on Amazon. This is not a sponsored review, I just really like this book. Well done, Steve.

Spokeo is Spooky - O

2010-05-06T14:23:00.001-05:00

Online privacy and Spokeo

Will Spokeo Kill Social Media?

Every day people log on to sites like Facebook and talk about their lives, interests, and purchases. If you created a search engine that could combine that information with publicly available data such as credit history, home value, and other reports, you could create a very revealing profile of anyone. Right now, that information is difficult to gather. After all, we don't reveal our personal and private life details in one bunch at a single site, we do it in bits and pieces of online exchanges that are scattered across the Web.

Spokeo Shares Your Personal Data with Everyone

Spokeo.com is a new site that is already receving some "blowback" because of it's intrusiveness. I logged on and found a mish-mash of true information and faulty facts. The possibility that someone could log on and access my creditworthiness from this site is frightening.

Don't Think You Can Hide Behind a Screen Name - Spokeo will find you

Have a screen name? That's a start to assure privacy, but if you've associated your screen name and your real name on any Web page, Spokeo can link you together. If anything can put a halt to social media, it will be search engines like this, which will scrape together all your online conversations and build these informational sites. Right now, Spokeo does not do the job very well, or very accurately, but others will come along with a more robust technique.

New Site is Up!

2010-05-05T09:22:00.000-05:00

The site is for anyone looking to sell photos online. It showcases photos that are doing well on IStockphoto and explains their success from a marketing perspective. The photo below is a copywrited image.

Sell Photos Online

Social Media is Hard Work

2010-05-03T11:38:00.006-05:00

Social Media requires long hours

Can Small Business Add Social Media to "To Do" List?

I work with small business people, and their days are full; overloaded in fact. Although everyone talks a great deal about Social Media being "free", the added work load for small business is costly. It requires attacking a multitude of fronts; posting helpful comments on blogs and Facebook, building a list of followers, developing informative content on a variety of platforms such as text and video. And it requires time.

What Happened to Active Bloggers?

Read Write Web had an interesting post in 2008 which compared the number of blogs being tracked by Technorati and the number of bloggers who had actually posted in the past week. Technorati tracked 130 million blogs, but only 1.5 million had posted in the past week. That's about 1%!

At the time, some people thought bloggers had transferred their creative time to Facebook or Twitter. Maybe. But Social Media impact demands your attention and new content on all fronts - blogs, Facebook, Twitter, etc., on a consistent basis. If bloggers grew tired of the ongoing demand for fresh content for a blog, I wonder how overwhelmed small business owners will hold up in Social Media?

Read Write Web

Tumblr is Great Social Media Tool

2010-05-03T10:44:00.003-05:00

Disover Tumblr

I just found Tumblr - what a revelation. it's a great platform for social media. It seems to be able to handle everything; video, music, test and audio posting. It also offers great template designs for anyone who doesn't want to get into a lot of custom coding. Adding a custom domain name seems pretty easy, too.

What Tumblr Doesn't Have (aside from spell check for their corporate name)
You must select a template that has all features, if you plan to use all features. What features any template includes is not immediately apparent. I've changed my template twice in a couple of days, however, with no problems. Also, the online "how to" documentation is pretty thin. On the plus side, I emailed Tumblr support with a question and got an answer back within 5 minutes.

Another limitation that I see, is that you can't import an existing blog. It's difficult to just abandon a blog with years of content. However, for new blogs, it's a pretty cool tool.

Of course, I had heard of Tumblr, but never had a chance to try it. According to Wikipedia, it's adding 15,000 new users a day. If you count me, that's 15,001.

Marketing Communications

2010-04-30T13:39:00.014-05:00

What is Marketing Communications?

Marketing communications is comprised of all the paid and non-paid external channels that a business uses to create messages or related media that are provided to an external audience, comprised of customers and prospects, corporate stakeholders, and the public. These messages can be categorized as promotional (sales messages) or brand messages.

Market communication channels are broad and intertwined. They include traditional communication channels such as print, TV, radio, personal selling, direct mail, bill inserts, and events. New digital communication channels, however, are becoming more important in marketing communications. These channels are comprised of Internet advertising, text messaging, blogs, Webinars, Purl's, and new Social Media platforms.

Brand Touchpoints

Marketers have become very adept in recent years in applying insights provided by psychological research studies to the corporate marketing and branding arenas. These studies have shown that strong, successful brands have built a complex relationship with their customers. This relationship can be somewhat emotional, but unexpectedly powerful in terms of brand loyalty.

Because of these insights, non-traditional elements such as package design, corporate logos, and sponsorships have become important brand elements and receive significant focus in any corporate market communications plan.

Types of Marketing Communication

The scope the marketing communications discipline is daunting in its size and concerns. It includes tactics such as:

Mass Advertising
Online Advertising
Content Development (White papers, brochures, Websites, electronic apps, etc.)
Trade Shows
Sponsorships
Promotional offers
Package design
Corporate logos and other brand elements (company trucks, building facades)
Customer Service (music selection while the customer is waiting on the telephone, customer surveys, CSR scripts)
Brand measurement
Database marketing
Digital communications (one-to-one marketing via variable data printing)

Integrated Marketing Communications

Integrated market communications is always a topic of concern for any large organization. With such a broad range of communication vehicles, advertising, event marketing, digital communications, and many others, it is very easy for a company's messages to become disjointed and contradictory when sent through so many channels. Marketing professionals seek to integrate all messages, and speak with "one voice" to their customers, assuring a consistent brand position in all communication media and products.

A Brief History of Social Media

2010-04-30T08:22:00.002-05:00

The Internet Was Social From the Beginning

Social Media is the topic of the day, and it seems that organizations ranging from corporate titans to the local "mom and pop's" are pondering how they can join this “new” form of online exchange to increase sales or strengthen a brand. Although most people automatically think of Social Media through the prism of sites like Facebook and Twitter, the development of Social Media is much broader - and has a longer history. In fact, a form of social media was present at the beginning, when the public first accessed the Internet in the 1990’s.

In those early days of the Web, a rudimentary structuring of social interaction began through "forums", which allowed users to post messages and create a continuing dialogue linked by conversation “threads”. This new digital communication channel, although primitive by today's standards, gave millions of people an easy, affordable, and more importantly, popular way to "publish" their own ideas, thoughts, and beliefs, to a wider online audience.

In comparison, most Websites of that time were little more than electronic brochures, containing static, unchanging “pages”. Forums, however, with their lively user-contributions; were always interesting, and continually refreshed, providing new and sometimes controversial content. It made for great reading, but it was also social media in its mewing infancy.

Blogs - Social Media’s First Steps

By 2001, the broader possibilities of the Web were explored by a new concept, first called Weblogs, and then shortened to "blogs". Blogs replaced the cluttered forums, providing a way to create a single, more-focused communication channel. Blogs made it easy to post commentary on any subject and develop an audience of like-minded readers that replied to the blogger’s posts, adding to, and enlivening the content. Although most of these early blogs centered on family activities, others began to focus on topics such as politics and business, and some lucky bloggers found themselves with an online audience numbering in the thousands.

Corporations were leery of the new medium, but by January of 2005, Fortune magazine was forced to encourage business leaders to capitulate to the inevitable, in a cover story entitled, “Why You Can’t Ignore Bloggers”. Bloggers, and by extension, their readers, were American consumers, ignore them at your own peril. Perhaps a better corporate strategy would be to join, rather than avoid, online conversations with consumers, the article suggested.

In hindsight, perhaps the most noteworthy aspect of the blog was its role in demonstrating the raw power of individuals, capable of creating a group of online "followers", without need for support, or the legitimacy provided by a political position or professional role as a news reporter. The Internet gave anyone and everyone a chance to build an audience, and depending on their singular abilities, exert influence in just about all areas of human endeavor.

Product Reviews – Courting the Social Searcher

Corporations began to slowly relinquish their need for complete command of the online forum, resulting in a new way to leverage the power of social media to influence behavior – product reviews. In 2004, Amazon became one of the first high-profile companies to accept user-generated reviews of books and other products. These ratings soon became a powerful tool in driving sales. Once again, the Web showed that average people can have a more influential voice on the Web than experts; in this case; book critics, from major media outlets.

Other companies followed quickly Amazon’s example. In some of these product review applications, visitors could “subscribe” to their favorite reviewer’s posts, allowing the reviewer to develop his own audience.

Why do people seem to prefer the opinions of anonymous reviewers than professionals found in major media? Perhaps it was similar to the distrust of major media outlets frequently heard in political discussions. There have been occasions when the impartial nature of media-sourced product reviews has been questioned. For example, in April of 2010, in an article entitled, “Apple IPad: The Reviews Are In,” Fortune magazine noted that all of the new Apple IPad reviewers were handpicked by Steve Jobs, all, it continued, were from publications developing an IPad app and stood to profit from the IPad.

In 2007, a research project commissioned by Power Reviews identified the influence of online product reviews. According to the study, people who utilized online reviews to make purchasing decisions were identified as “social researchers”. The study found that 65% of online shoppers said they “always” read online reviews before making a decision. An example from the study highlighted a company called Delightful Deliveries, which added customer reviews and found, within two months, a 20% increase in conversion rates among products receiving four and five star reviews.

Social Media Takes Center Stage

As technology and Web software continued to advance; the role of an online commentator was recognized, formalized, and became a standard Web design feature. Sites were more interesting, and gained more traffic, when they allowed visitors to post comments, raise questions, or rate the quality of products and services.

The power of followers, fans and product reviewers was obvious, the question became; how best to profitably harness that power?

My Space, Facebook, Twitter, LinkedIn, and so many more

Perhaps it took the explosive development of countless Social Media applications to make us think that something new had arisen on the Internet. If so, only our awareness is new. Today, a “social” tool is now part of virtually every site or blog.

Ironically, as corporations debate on how to “get involved” with Social Media, it’s a good bet that, unknowingly, they already are involved. How could they not be? If a corporation doesn’t allow customer comments on its own Website, they will discover dozens of user-reviews on Yelp or City Search. If they search blogs and Twitter, they will find themselves there, too. LinkedIn? It probably features the resumes and activities of many of their employees.

At the beginning of the second decade of the 21st century, maybe we finally realize that we don’t have something called “social media” that is found at certain destinations on the Internet. It's much broader than that. We have a Social Web, with a growing list of new tools, and we all make it happen together.

Do Marketers Understand Social Media Content?

2010-04-23T10:57:00.000-05:00

Marketers and Content

Just about every social media article that you pick up highlights the importance of "content". To illustrate the author's point, the article will highlight a case study or two. But, what have any of us really learned?

Most, if not all, case studies, feature a company that devised a way to take their innovative idea and original content, package it in a compelling, unexpected way, and use it to drive traffic (and hopefully) sales. But that's far too simple, and it doesn't begin to capture the true nature of the challenges in creating social media content that makes an impact.

Social Media Content is Something New

Social media content is a new hybrid of Web communication that is a varying mix of ad copy, compressed magazine editorial, sharp graphic design, and (many times, not always) a technological, value-added assist such as a new app (Burger King's drop a friend, etc.), or online service such as a "tracker" (celebs, diets, fishing), videos or other digital add-on. After you've created your new, social media entry; you take what you've developed, and pitch it to Facebook, Twitter and all the rest, in some "viral" promotion.

But, wait, there's more:

Think for a moment of the balance of skills that it takes to create the kind of social media profile that gets noticed: marketer, copywriter, graphic designer, market research, product designer, programmer, digital producer, and SEO maven - each of these skills applied in new, still-evolving ways.

If you think that you can simply develop social media content by showcasing your writing ability, industry knowledge and personal authority and gain social media traffic - may I ask you to consider 50 million unread, yet thoughtful, blogs? Blogs, remember them?

No Social Media Classes - Yet

I doubt that there are many college course books that have more than a few paragraphs on the subject. Case studies? If I could summarize what I've learned from reading all the case studies that I've seen to date, it's simply this:

Start with a brilliant idea or insight, then follow through with attention-demanding execution, and make it all seem so very, very easy.
Got it.

5 steps to more-relevant marketing - iMediaConnection.com

2010-04-21T11:05:00.001-05:00

"Breaking through the clutter is tougher than ever."

Customers are demanding precision marketing. Follow these guidelines to ensure your message resonates, rather than repulses.

View >>

Selling Technology to Marketers

2010-04-14T09:11:00.000-05:00

Well, perhaps this post should be called "buying technology" since that is what I do frequently. It can be stressful, because I don't have a technology background as a programmer or other "geek" role. I am in marketing, but have always been an advocate for the "new" - when it made business sense. However, I believe that my job would be a great deal easier, if the salesperson selling technology - "the next big thing" - would simply aid the sales process instead of making it more difficult. With that in mind, here's my letter to anyone who wants to sell a hi tech product to a corporate marketing department.

Dear Technology Sales Professional,

If you want to sell your product more easily, to happier customers, here are my recommendations:

1. Know your product

Every time I ask you a question, which you don't know the answer to, makes me begin to suspect all of your answers. I'm not that smart. If I can stump you, you're easily stumped. That fact worries me.

2. Know how to apply your product in my business environment

I'm not asking for a business plan, but if I ask you if anyone else has purchased your product to use in a similar way and in a similar industry, why don't you know? How did you prepare for this sales presentation, if you don't know that? Why, then, do you think it's a good fit for me?

All your examples of how your product worked in the widget industry doesn't help me - unless I sell widgets or I can see how widgets are just like my product.

3. Be complete and honest

Too many sales people will only answer questions in the most narrow terms. "Yes, my product will do that!" A truthful answer - the product will do that - but only if you purchase the equivalent of a Saturn rocket to strap to the side of his new product. Why do I have to ask so many questions, in so many different ways, before I discover the additional (expensive) purchase necessary to do what I want?

4. What will it do "out of the box" and what requires additional programming?

Why do you have to make some calls and get back with me? Why don't you know?

In summary, why do you sell very expensive products, in any manner that you think will work, and then let your local service reps pick up the pieces of this business relationship after your product is on our servers?

Come to think of it, why do I receive so few customer satisfaction surveys about the sales presentation? Oh, yeah, it's the things I mention above.

Okay, I admit, I'm jaded. But right now, I'm writing a multi-page questionaire, with illustrations, to give to a sales person describing what I think he is telling me about his product and its capabilities. I'm doing this, because he doesn't know, or has been trained to avoid giving a straight answer. This back and forth dialog will last for months. Eventually, I will know his product from the ground up - I just wish he did.

Branding Your Customers Limits You

2010-03-15T09:09:00.001-05:00

Branding is a two-way street

There are many definitions of the concept of branding, but one of the easiest describes branding as "the emotional connection" that consumers have with a product or service. In the branding world, customers frequently use the term "love" or "like" to describe their feelings about a product or service. I have found, however, that marketers are also influenced by emotional, non-rational, connectors when thinking about their customers. Just because you're in marketing doesn't mean you are not influenced by marketing concepts as you perform your job.

Branding customers

A few years ago, I was sitting in the parking lot of a local K-Mart store with a VP of Sales of a company that I worked with. She pointed to the customers who were entering and exiting the store.

"Those are our customers," she said.

I was monentarily confused. K-Mart was not a major channel for us. Then I realized that she mean her comment to be a metaphor. Our customers were "K Mart shoppers", the seekers of "blue light specials" and low-cost goods. A resident of the lower class. Who among us seeks to be known as your typical K Mart shopper?

What was interesting was that she had no data to back that up - certainly not sales data. But, there it was. An influencial executive's summation of our customer base. That perception drove all of our product design and development. If anything we developed seemed to be to, um, classy, it immediately ran into obstacles.

The company refused to develop anything that might not appeal to the perceived plebian interests of this metaphorical group. It was not a successful strategy and the company eventually ran into trouble.

Branding by income

I worked for another company that segmented its customers by income, and created a label or "brand" for each group. The low income group (20% of our customers) carried a lable of "down and out" - the actual internal descriptor.

Branding makes things too easy

Customers create a brand image because it makes shopping easy. In a sense, it's a tool that helps them avoid the constant work of decision-making. For marketers, it's a crutch, too.

Would a K Mart shopper like this product?

Do I want to spend time thinking about one-fifth of my customers - if they are all "down and out"?

Most of us brand our customers in some way. It helps us make quick decisions. But if we want to develop innovative products and services, we have to drop the tendency to brand customers and do the hard job of creative thinking. The first step is to recognize how you are branding your customers, and how you label them? Each customer lable, or brand, you create, limits your options.

The 22 Immutable Laws of Branding

Social Media is not Free

2010-03-10T08:07:00.001-06:00

Social Media has many hidden costs

Just recently, I read a post on a well-known social media blog. The author was touting the advantages of social media compared to tradtitional advertising and making great use of the word "free". Is social media really free? I don't think so.

Social Media is labor intensive

Although there is no cost to begin a Facebook page or open a Twitter account, someone has to post to these accounts to develop "followers". Additionally, that person should have a certain gift for writing interesting, useful posts, or the social media audience quickly loses interest. In most organizations, a paid employee - with salary and benefits - is assigned this task. So, in that sense, it's not free.

Social media frequency requires resources

For blogs, it's been suggested that the optimnum number of posts is at least once per day. Twitterers are told that at least four times a day is best. That is a great deal of content. Unless you have a business that is retail-driven, and can continually post items such as "Beautiful Widgets for the home - 50% off", you are forced to try and actually say something that a follower wants to read. That's easy if you're involved with entertainment or sports, but more challenging if you work for 99.99% of the rest of the organizations in the world. In addition to the time actually spent writing, the paid social media employee will spend a great deal of time trying to come up with the next post, setting up meetings, talking to other employees - using resources.

Also, most larger organizations review anything that is being distributed to the public. So, now, another employee (a manager) is involved. He or she is constantly reviewing the outgoing tide of "copy" that is being fed to the public.

Social Media has a tremendous appetite

Unlike a Ronco oven, you can't set it and forget it. An unprepared organization quickly discovers that it has become a publisher. Attempting to send out relevent copy day after day becomes quite a challenge. Many Twitterers can't keep up and begin to send out inspirational "quotes" to fill out the slate. I don't know of many organizations that want to make the internal investment in social media simply to send out inspirational quotes.

Social Media attracts consultants

Many organizations, who have never had a "dialogue" with their customers, don't know what to say. Marketing is filled with consultants who will help them figure this out, but at a cost. Once again, we find that social media is not free.

Social Media is very, very challenging

Social media is so new, that most of us don't know much about it. We do know, however, that it is a black hole that eats up content and demands fresh thinking all the time. I would write more on this topic, but I need to start working on a blog post for tomorrow...and tomorrow...and tomorrow.

Marketing Ideas Ideas for marketers

Web Privacy

2010-03-01T10:12:00.002-06:00

The Secret Life of Tom and Ray

With the recent launch of Google Buzz, concerns about Web privacy were renewed and invigorated. Google Buzz's haphazard layout appeared to create the possibility that users could unintentionally broadcast their private emails throughout the Web. The protests were loud, and Google made fast security adjustments to their new Buzz product.

What is interesting is that so many people were immediately in-arms about the possible exposure of their private conversations, but inexplicably continued to trust the typical online sales process that requires sending credit card information to Websites that provided little more assurance than an Avatar. Where is the concern for Web privacy and security when purchasing products from any of the millions of small online marketers (How to make million$ on Google before noon today, etc.)?

Somehow, there is a serious disconnect when people are concerned about their "Buzzs" being released to the Web, but unfazed when providing their credit card number to anonymous marketers. These marketers may have demonstrated an ability to use keywords to get their Website discovered by surfers; but have done nothing in terms of providing personal identification except showcasing a blurry image of "their first check from Google".

Online in the darkness

Tom and Ray (names disguised), are two of many Web marketers who promise a great income, if you purchase their Website product. The two men can write great copy and offer a deal that seems too good to be true. Their personal photos on their Website feature two young men on a rocky beach with an ocean serving as backdrop. Expansive grins are plastered on their faces, as if to say: We're so rich, we could buy the Pacific Ocean! Or, is it the Atlantic? Maybe it's just Lake Michigan? Oh, well.

Their Website provides many testimonials from people like "Charles from Spokane". But as I read the glowing remarks, I realized that there were no last names provided for any of the customer reviews, nor were there last names for the site's owners - "Tom" and "Ray".

Why do we permit Web marketers to remain anonymous? Would any of us do business with a brick and mortar store where the owner refused to tell anyone his full name - especially if the transaction cost hundreds of dollars? Yet, it seems that, on the Web, people do it every day.

Contrast that with traditional businesses. Even if a store owner failed to give us a name, we know the store's location and we can easily return. Yes, there are "scams" in the real world, but the the virtual world makes scams far too easy.

Tom and Ray at home

I sent an email to Tom and Ray asking them, who they were, and where they lived? My reply was from their "secretary" who said they do not divulge that information out of concern for the privacy of Tom and Ray.

So, let me understand this. You want your customers names, their email addresses, and their credit card numbers - but you're concerned about your privacy? Really? I can find the real names of the Chairman of GM and Microsoft, but "Tom" and "Ray" are concerned about their privacy? I don't believe marketers have a right to provide false, misleading, or non-identification to customers. If not a name, then corporate identification with a physical address - no P.O. Box number, something that allows a buyer to track down a marketer, if it becomes necessary.

No Web privacy "right" for online marketers

I believe that there should be an additional standard for online marketing, compared to general bloggers or other non-business Websites. Currently, anyone with adequate SEO knowledge can drive a Web page to the top of Google search returns. A typical Web surfer might interpret that as a sort of quality endorsement, when in fact, it is merely a tribute to the marketer's SEO skills. I can't think of any reason why anyone who sells anything on the Web should not have a confirmed identity - either with Google or some other third party. It should be real confirmation, not the standard call-to-a-cell-phone number confirmation that is used so often.

An alternative to that idea would require privavcy-concerned marketers to use an independent third party (Amazon, Google or others) to provide the shopping cart for the transaction. These third parties would be required to have well-established refund procedures.

None of this would require new regulations. The major search engines could just give a significant search "boost" to marketing sites that included confirmed identities. If your site doesn't include a sales cart, then you can remain as anonymous as before. Privacy on the Web should favor the consumer, not the marketer.

Focus Groups - More Art than Science

2010-02-22T14:30:00.002-06:00

Focus Groups

Market research depends on both quantitative and qualitative research to gain insight into the minds of consumers.

Qualitiative research (focus groups) provides insight into the "how" and "why" behind customer behavior. In a focus group, consumers sit in a roundtable discussion while a moderator or facilitator presents them with the concepts to be tested.
Quantitative research (sales reports by region, for example) typically focuses on actual results (customers who buy this, typically buy this). It does not concern itself with messy subjective factors that influence buying behavior.

The Reality of Focus Groups

Qualitative research is more of an art than a science. Consumers (like all of us) don't have a good idea of why they do many things in life, and purchasing behavior is frequently one of those areas. Why do they prefer one product over another? A prettier label? Inertia? Positive brand impressions? It takes skilled facilitator to sift through the overlapping comments of 10 to 12 people to try and discern commonalities.

Another factor that tends to obscure insights gained from a focus group are the players who sit on the other side of the one-way mirror. If advertising is being "tested", the client area is full. You'll find advertising agency reps, several marketing professionals representing the client, and executives from both companies, watching and listening. Everything that is said by the participants on one side of the mirror is filtered through the expectations of the client/agency-mix sitting on the opposite side. And no one, viewing from the darkened client side, nervously overindulging in the many dishes of M&M's, can claim to be objective.

The Focus Group Moderator

Pity the poor focus group moderator. In addition to the challenge of the task at hand, he or she must also be aware of who is paying his bill (especially in a smaller market). You will never receive a harsh report from the moderator. Results are presented indirectly, diplomatically. Only a veteran client or agency rep can read language like, "you might consider...", with the same level of interest as he would direct to an approaching police siren.

Far too many times, I've seen an ad agency creative director lead a focus group. This should never happen, ever. It is far too easy to sway group comments under the best of circumstances - an unconscious frown or a slight blush of pride can lead a group as effectively as spoken direction.

What Happens Behind the Glass

The human dynamics behind the glass at a focus group are just as interesting as those in front. Like Olympic commentators, the agency and marketers try to frame consumer comments and reactions as they happen. So often, the focus group report bears little resemblence to what everyone thinks they have witnessed. If the final report is delayed too long, it can be too difficult to change both group consensus and fast-approaching deadlines. The Rubicon has been crossed and there is no going back.

Qualitative market research is a very valuable tool, but it is burdened with many all-too-human variables. As a result, focus groups probably will always remain as much an art as science.

Focus Group Facilities - Fine Dining (A side note)
Most people would be surprised to discover that there are active focus group facilities in their town. Perphaps that's because, with the right connections up front, it's relatively easy to open-up shop as a focus group facility. The physical requirements are easy to manage: a one way mirror, a conference table for participants, an area for the client and agency, and audio and video recording capabilities. I've been to focus group facilities in malls, office buildings and hotel ball rooms. The logistics are pretty simple.

As a result of the ease of entry into this market, small differences can have a huge impact. Food seems to be a key marketing tool. Most facilities have on-going catering arrangements with fine restaurants for the clients (participants usually make do with a sandwich tray). Consider yourself lucky if you are asked to attend a focus group in New Orleans. If you have to spend several days in repetitive focus groups, food can sway your selection of a facility. I've seen it happen many, many times.

Branding for Bloggers

2010-02-15T12:42:00.003-06:00

Basic Marketing Can Help More Than Twitter

You can read countless posts on the Internet about how to make a blog a Google champion. The advice varies: "Twitter", "keywords", "content", "podcasts"... the list goes on. Some of these ideas may increase product sampling (random visits) but do nothing toward building a brand or brand loyalty (return readers). Basic marketing techniques can help any blogger (or podcaster) build a brand and increase chances for success.

1. Decide What to Brand

Are you trying to brand the blog or yourself? The brand should always have a strong position in promotion. Many people say they are starting a blog to build their "personal brand", and then hide behind an avatar. If you are trying to build a personal brand, then your name and photo should be on top of the blog banner. If you are uncomfortable doing this, then develop your blog as the brand. Don't try to do both unless you have a heckuva promotional budget.

The difference in the two choices are reflected in the blogs of Seth Godin and Duct Tape Marketing. One blog supports a personal brand, the other supports the blog as the brand.

2. Brand With an Eye to Competitors

Take a position that compares favorably and distinctly against competitors in the marketplace. Too many blogs attempt a "me too" strategy. A common habit among bloggers is to comment on the latest development their field of interest and then link to a primary source on the Web for the complete story. If that's what you're doing, then you need to be very clear about why your opinion matters on top news stories - and be able to convincingly back that up.

3. Stake Out a Strong Brand Position

What value can readers consistently expect to receive from reading your content? In simple terms, that is your blog's brand position. If you can't easily define your brand position, then don't expect your readers to be able to do it either.

Do a Market Test

After you've completed a few posts, ask some trusted friends and colleague to read your posts and compare them to your brand position. Is your brand position believable? Do you provide convincing evidence to support your brand position?

Do a Second Market Test

Use StumbleUpon paid advertising and see how your posts are graded when seen by hundreds of potential readers. Promote several different posts to help you average market reaction (it can vary widely between posts).

Afterwards, take information from SiteMeter or other analytics to see how long your new visitors stayed on your site. Were they interested enough to read more than one post? Did they immediately bounce off? Why did you succeed or fail? Learn and refine your brand's position.

Do a Third Market Test

Dedicate a few dollars to Googe Adwords. Create an ad that accurately reflects your brand's position and then target your ad to the Web audience that you think matches your likely readers. How many impressions did your ad need before you finally got a "click". Even if you don't plan to sell a product, a few dollars in advertising money will tell you how your blog's brand position resonates with your potential readers.

Market research is always undervalued, but it's the best way to ensure a successful product entry into any competitive field. Blogging is no exception.

Some basic Marketing ideas

Customer Comments Become Guerrilla Marketing

2010-02-09T15:46:00.015-06:00

The Shadowy World of Customer Reviews

"There was a strong smell that hit us when we came in the door. No one offered to help us find a table, or even offered us a menu. The floor was filthy. After awhile, we just left."-Posted by anonymous.

In local searches for products and services, the leading players such as Google, Yahoo, Yelp and the other search engines specializing in mobile search, do everything they can to encourage reviews. They know that the opinions of previous shoppers from the same market area are what the online searcher wants. As a result, a small business with many customer reviews seems to get higher placement in both local search and mobile search returns than competitors with fewer online comments - other factors being equal.

Customer reviews are important for all types of online products. One of the great aspects of Web storefronts like Amazon is that they allow a host of small, "virtual" companies to compete against well-known brands. Without the benefit of customer reviews to reassure buyers about the quality of new products and services, it's doubtful that so many small start-ups would find success as quickly as they do now. No doubt about it, consumers like to be reassured about their purchasing decision. This is not new. Testimonials have been an effective sales closer in direct marketing for over 100 years.

Many Products Now Come Packaged with Positive Reviews

It seems, however, that more and more products are coming "pre-loaded" with positive reviews. Recently, on Amazon, a new exercise device found its way into the health and fitness category. It came online with an impressive set of positive reviews.

The Amazon marketplace has a very distinct sub-set of users. They are a loyal group of people, who for reasons that are probably similar to Wikipedia volunteer editors, like to review products and do so by the hundreds.

A couple of these veteran reviewers found the new fitness item and its collection of well-written, feature-rich customer comments and took strong issue with them. They answered the first set of glowing reviews with their own um, thoughts. Their posts were not about the product, but their opinion on the authenticity of the glowing reports. First, they noted that the reviews came from people who had not reviewed any other product on Amazon. The suspects, they pointed out, had created new accounts, found this one product, and then created reviews worthy of Madison Avenue copywriters. Second, they had all been posted on the same day.

That would have been bad enough, but the original reviewers came back online later to protest the counter-reviews. They were real people, they insisted, and had a right to be heard. This response, of course, was answered and soon an online, virtual brawl among the reviewers ensued. It was very entertaining, but soon Amazon deleted everything. Oh, well.

If a small business owner thinks that a competitor is planting bogus negative reviews and comments about his business - will he retaliate? What should he do when his business is at stake, start an online war?

Customer Reviews are the Next Online Sales Battleground

Because the customer review tool is so powerful in online sales, it has become an online-marketing, guerrilla tactic. Get your friends to post positive reviews of your business, and negative reviews of your competitors and watch your sales climb. The effect can be devastating to any business that depends on local traffic. In a move to keep reviews honest, Yelp very publicly suspended a circle of non-competing businesses that posted, in turn, positive reviews of their fellow group members.

On Amazon, authors have been accused of posting scornful reviews of competing books, while praising their own. Their big mistake was praising their own work far too well.

Future Ad: Don't leave your customer reviews to the whims of your customers! We provide reviews for products on Amazon, J.C. Penny, and all other major online retailers. Over 10,000 product reviews posted to date. We can write strong, but natural-sounding reviews in either male or female "voice". We have hundreds of exisitng customer profiles reflecting every demographic on major storefronts. Local markets, also! Take charge of your destiny and get your product hundreds of 5 star reviews!

Let the buyer beware.

Added Value

2010-02-05T09:46:00.001-06:00

How Much is Your "Added Value" Actually Worth?

Asking a product manager if his or her product offers "added value" to the consumer is much like asking any individual if they think they are a "good person". In both cases, only a person with serious emotional challenges would provide a negative answer to either question.

The concept of "added value" is the idea that if a product offers additional benefits to the customer, which go beyond the stated purpose of that product (or service), it is offering added value. Added value is an unexpected "gift" to the consumer, helping to strengthen the brand, and enhance customer loyalty.

Well, if every marketer feels that their product provides "added value", then we must be living in a virtual golden age of marketing. But, it doesn't feel that way. So, what's the disconnect?

I think the disconnect is found in the answer to the question itself. How many marketers do you know that might answer the added value question in the following way:

Our added value?

"It's our people. Good, smart people who care about the customer."

"A rich history of tradition and service. That's what makes our products special."

"Friendly people. Our front line folks are constantly complimented on their customer-orientation."

"Quality products. Our products consistently rank number one in quality compared to competitors."

Well, the list of possible answers go on and on. I believe these types of answers are easily challenged, and that they do not provide, and are not perceived by customers, as providing the same amount of value that the marketer does.

Quality is not Added Value

Even the last remark concerning "quality" - isn't that "added value"? No, in my opinion, because typically the price reflects the quality of the product (I know, not always). The customer is not getting anything as a bonus for buying your product, they paid for that quality, and to me, the unexpected benefit that a product provides is the very heart and soul of the idea of Added Value. What about great customer service? Perhaps, but only if all your competitors are providing poor customer service. And wouldn't your competitors list "great customer service" as their added value? If everyone in your market provides great customer service, what's the unexpected bonus?

What is the Worth, in Dollars and Cents, of Your Added Value?

Most marketers want to list a set of intangibles as their product or service's added value. But, if we insist that the only items that could make the value list were things that you could actually quantify, put a price on, are the only items that are classified as "added value" then the list would grow much shorter.

As an example, I deal with printing issues a great deal. Our printing representative brought us a proposal that suggested changing our work flow to her company, resulting in substantial savings over the course of the year. The rep made the effort to look at our history over time, understand our business, and make a sound recommendation that worked well and saved us money. That's added value. Her job is to provide printing services, not make process improvements at my company. In this example, thinking about the customer's business is an intangible of uncertain worth, making suggestions that save money is value in dollars.

Certainly there are intangibles that are added value, but if the only items that are on your Added Value list are intangibles, you are always vulnerable to a competitor who provides extra value that can be measured in dollars and cents - especially in today's economy. So tell me, what's on your list, and what is it actually worth?

Sales Letter Makes A Sale and Buries the Brand

2010-02-02T08:26:00.003-06:00

Does Your Sales Letter Support the Brand?

Sales letters are where copywriters display their art. The traditional sales letter is the most studied, carefully crafted communication in the world today. Some of the most successful phrases in this communication channel are repeated so often in mailings, they have become cliches of the craft:

"If you're like me, then you..." (are interested in saving money, want to find a great deal, etc.)

...that's why I'm sitting down to write to you today..."(to let you in on this secret, bargain, offer.)

The familar list of phrases goes on, and if you're in marketing you probably know them all to well.

That's Why I'm Sitting Down to Write to You Today

Copywriters are always pressed to get response, to create excitement around a product or service that may have been on life support previously. This constant push for results sometimes sends the sales letter close to the point where product sales begin to cannibalize the corporate brand.

For example, I recently received a sales letter from a local Mazda dealership informing me that they are one of the lucky, authorized dealerships permitted to buy my current, used vehicle at the ORIGINAL FULL PRICE that I paid! For a limited time, they would pay full new-car price for any used vehicle, purchased from 2002 or after, with the purchase of any new Mazda - but I can't share the letter, this offer is available only to me.

Wow, what an offer! Sign me up! I just happen to have a 2002 truck that I'd love to trade in for the original price I paid in 2002. Who wouldn't want that deal?

Of course, you know as you're reading this that they really don't intend to buy anyone's used vehicle at full price. And the letter goes on to qualify the claim. It turns out that they will use a formula, explained later in the letter, to simply deduct a mileage penalty from their full price offer.

Let me get this straight. You've just been authorized by Mazda USA to buy used cars, at a depreciated price, in order to sell a new car? What exactly had you been doing before?

I'm sure the sales letter will be effective with less-educated consumers or the elderly. Most people will toss it, but just enough will respond to make it profitable. I'm sure the dealer would say, just get 'em into the showroom - I'll take it from there. Unfortunately, he is probably right.

When the Sales Letter Hurts the Brand

Car dealers and politicians have the lowest trust ratings among consumers for good reason. The empty promises of politicians and the misleading sales offers of car dealerships drive both their reputations into the gutter. For any business, the point of sale is the most important place for establishing the integrity of the brand.Your customer's purchase experience with your product will either support or belie your brand position.

For those companies that make extensive use of sales letters, I'd like to propose an experiment. Ignore all your other customer communications (print and broadcast advertisments, public relations, sponsorships etc.). Simply read all of your sales letters in one sitting. What do your sales letters tell you about your brand?

How One Billboard Can Change Your Life

2010-01-28T09:31:00.009-06:00

A Billboard Still Beats A Web Banner For Local Business

A few years back I was in Nashville, TN, working with a realty company. The hot topic with the reps around the water cooler of that company centered on a recent addition to the team (let's call him "Joe"). Joe was a new retiree, who like many, found that he had too much time on his hands and not enough money. The work options are limited in that age range, so he decided to become a real estate agent.

Nothing surprising here, realty is often the job of last resort for many older workers. This is not a slam against the real estate profession, but most offices will take on any reasonable candidate who is willing to work in this commission only environment. Sometimes these retirees, with their supplemental income, can last long enough without sales income to eventually build a business. That is not how Joe did it.

Joe was different. He took an incredible gamble his first month on the job, the ink barely dry on his liscense. He bought a huge billboard that could be seen easily from the Interstate. It cost him a great deal of money to get this prime location. It was an insane move for the first month of the job.

However, this was before the housing bust, and the Nashville housing market was hot. Almost immediately Joe's phone began to ring. He was new, and didn't know a lot, so he asked other agents to partner with him for a split-commission. Of course they agreed, it was "free" business. Soon, it seemed every agent in the office was partnering with Joe - the guy who didn't know a lot.

Although the other agents were glad to split the commissions with Joe, it didn't prevent them from talking behind his back. "Don't people realize that he doesn't know what he is doing?" They complained. "People can be so gullible."

What was interesting for me is that no one in that office was considering getting a billboard for themselves. Let me repeat that, NO ONE. This is from a group that considered themselves to be savvy marketers. Yes, a billboard along an Interstate in the middle of Nashville is very expensive, but the results made it worth it.

Maybe Joe got a lucky break, but I saw the billboard, and he did a couple of things right. First, the billboard had a huge photo of his face. There was nothing to distract from the simple image of the "Joe brand". It was not the typical full length photo of him planting a sign in a yard, or jumping in the air, or anything clever. It was his face - front and center. Second, his message was simple: "Let Me Help You Find A House" with a large phone number and company logo. The message was easy to read at 70 MPH (or at a slow crawl during rush hour).

Also, his office and the billboard were adjacent to one of the best-selling areas. He became associated with that area by the proximity of the billboard to a desirable location of homes. A billboard across town would not have been effective.

Nothing beats the power of the human face to draw viewer interest

For Joe, his face was his story. It was the core of his offer. As people sped down Interstate 40, they looked up to see his smiling face - and made some quick decisions: He looked likable and appeared trustworthy. Because of his age, he also looked like he had been selling houses for years. Maybe they were right about his rudimentary real estate knowledge, but he sure knew what he was doing. Thousands of impressions each day turned him into the sales leader for that office. This was the guy who didn't know what he was doing.

For the local market, online marketing still doesn't hold a candle to on-the-road marketing. I not saying that everyone should rush out and buy a billboard, but sometimes the only "social media" that you need is proper signage.

How Television Production Companies Handle Clients

2010-01-26T10:56:00.006-06:00

Different Goals, Troubled Relationship

I've been involved with a great many TV commercials (client side) over the years. And I am well aware of the wary relationship between the client (representing the company that is paying for a TV commercial), the commercial director and the advertising agency during a shoot. There are several reasons for this awkward threesome:

For almost all video shoots, the advertising agency selects the director and production company (the client is usually not directly involved in this). Because of this hiring process, the commercial director is eager to develop a relationship with advertising agencies (who can increase his billings) but not with the client who is paying everyone's bills.

From the advertising agency perspective, the agency wants to have many choices of directors that they know and trust. They also want to be known as a company that hires "hot" directors.

However, the commercial director and the advertising agency both realize, albeit reluctantly, that the client company is paying the bills. The person writing the check is typically the most important person in any business meeting. This not true on the set of a TV commercial. The client is the necessary evil, the potential party-spoiler, the great unknown. Of course, this adversarial relationship won't be the cover story on any advertising trade magazine, but it is part of the planning of just about every video production. Where do we put the client? How can we contain client input? Here's how it works.

The arrival of the client at the location

Upon arrival, the client is immediately shown to the "craft services" table (the food). At this point he or she is welcomed by the director and the main advertising representative at the commercial shoot. After this brief meeting, a "producer" is attached (glued, stapled) to the side of the client. The role of the "producer" is to keep the client happy and far away from the set. This is usually a charming young female.

The video production set and the dead dog

It's a joke, but one which is repeated often. The production company puts a "dead dog" on the set, so that the client can make a suggestion that won't ruin the spot. The client tours the set and then says, "I love everything, but could we removed the dead dog? I think it distracts from the visuals".

"Great idea!" Everyone responds. The client has made a suggestion and feels like he's made a contribution. Everyone then prays that that will be the end of it.

They don't really put a dead dog on the set. Most television production companies brace themselves for the stupid client suggestion. The old joke reflects pervailing value of client suggestions.

The client's cave

The client is then shown to a room as far removed from the actual shoot as reasonable and practical. The client is never allowed on the set. They are put in front of a monitor at a distant location so they can see the footage, but are effectively limited in the amount of input they can provide. There is usually some walkie-talkie kind of interface which makes communication purposefully difficult.

The commercial director

The director's goals and the client's goals are different. The client wants to sell product - that's why he's here. The commercial director wants something for his reel. He wants to do something with the client's spot that approaches "art", that demonstrates his skill, and, most importantly, will gain him more business. He also wants to please the advertising agency that hired him. That's it.

Why doesn't he care about the client's success? Even if the spot is wildly successful for the client, there is no assurance that the advertising agency (remember they're the one who hired him) will select his video production company for the next assigment. His goal, for the spot that he is shooting today, is to get his company more business in the future. The route to getting more business is to shoot pretty pictures with lots of new effects that impress other advertising agencies.

The commercial director also realizes that the ad agency doesn't want him to talk with the client, so if the client directly approaches him, he'll get the agency over to join the discussion ASAP. There is very little chance that he will build a seperate relationship with the client company during a shoot. As a result, there is little chance for future business from the client.

The advertising agency

The agency represenative has two missions during a TV commercial shoot, (1) keep the client happy and (2)limit the input from clients. Typically, they manage those twin tasks by using these magic words in response to every suggested change, "Why, yes, we could do that, it's a great idea - but there will be some costs involved. Maybe an extra day of shooting."

That effectively shuts the client up, and the shoot day is complete.

It's rare that the guy holding the checkbook is handled in this way, but it's all part of a standard video shoot.

Jay Leno and Conan O'Brien - 5 Marketing Lessons Learned

2010-01-23T15:59:00.003-06:00

The recent brouhaha over the switch in late night hosts is a great example of a failure in applying some basic marketing skills in late night television. Five obvious lessons:

1. Never drop a product that is making money in hopes that a new product will make more money

When Campbell's Soup added the "Chunky" line, they didn't dump their lead brand, nor did they give it a deadline to be off the shelves to make room for the new competitor. Today, the original brand still has the majority of the shelf space, and Campbell's meatier version has to fight for what it can get. When the Chunky label starts outperforming the lead brand, their positions will reverse.

2. Do a market test

Seems like basic marketing doesn't it? In fact, NBC had tried this idea out many years ago when they put Jack Parr (a one-time host of the Tonight Show, into a prime time spot). It failed quickly. But times change, and maybe this would have worked. A simple market test, airing the Jay Leno-hosted Tonight Show in one television market for a few weeks to see how the public responded might have save NBC hundreds of millions of dollars.

3. Don't let your products attack each other (Duh!)

As the controversy lingered, Leno and O'Brien publicly turned on each other and NBC. Can you imagine Campbell's allowing their brands to do the same? A brand war similar to the Leno / O'Brian feud might look like this:

"Old Campbell's Should Give Up Shelf Space" - Chunky Soup Protests. "They've made their money, give the young brands a chance."

"Campbell's Executives Leading Soup Company to Slow Death" - Campbell's Soup claims

"I Never Trusted Campbell's" Rival Progresso Soup adds voice to soup fight

4. Always have an exit strategy

If the new product doesn't work out, how will we exit the market? Hmmm, perhaps we could pay the Campbell's Chunky brand millions of dollars to find another manufacturer?

5. Learn from your mistakes

Sounds simple, but do we really think NBC has learned anything? Do they even remember Jack Parr?

Stickiness - How difficult is it for customers to leave your company?

2010-01-22T22:45:00.000-06:00

Some businesses are naturally sticky

Yes, it's a really marketing term. Customer retention is made much easier if you are in a "sticky" business. The term refers to the relative ease or difficulty that your customers may face if they want to change from one vendor to another. For example, it is relatively easy to switch from one dry cleaners to another. The same can be said for grocery stores, gas stations, and other retail stores. You are not "entangled" or "stuck" to these stores by a complex relationship. In other words, your new choice in a retail store can satisfy your need for groceries, or clean clothes, just as well as your previous store. For that reason, customers frequently change from one store to a competitor based on real or perceived fluctuations on price.

This concept is not limited to retail. Advertising agencies are not sticky at all. A campaign or two falls flat, and the client is looking for new creative ideas. Accountants and doctors have it easier. It's very difficult to pull your records and get a new professional up to speed.

Interested in keeping your customers? Find ways to make your relationship with your customers more complex or "stickier". In a down economy, sticky is a good thing.

The Truth About Variable Data Printing and Marketing

2010-01-22T16:24:00.005-06:00

Marketers Don't Know What To Say To Customers

One of the most innovative aspects of digital printing has been the introduction of a technology that is often called variable data printing (or variable information printing). These software programs (XMPIE, ExStream, Xpression, Thunderhead Now and many others) allow a marketer to send out thousands of individualized messages to the company customer base or prospects. These messages can be sent as printed mailers, statements, emails, text messages or any other type of digital message.

When it was introduced, it was described at the "one to one" revolution that was once promised as the marketing ideal. And how does the marketing department currently use it?

Dear {Name}, How are things in {State}? Since you recently bought {product #1}, we thought you would be interested in {product #2}.

I exaggerate only slightly...

Aside from the mail merge 2.0 example above, we often see the technology used in personalized photos. I'm sure you've seen them. In these glossy, customized photos, the prospect's name is sometimes formed by clouds in the sky,"carved" into some random object, or the recipient's name appears on a city street sign in some attention-getting manner, but depth of the individualized message seems to stop with this Photoshop effect.

If you only know your customers by the products they've bought, you don't know them.

What should we be seeing in direct marketing? Variable data printing allows you to change text in a hundred different ways, according to demographic data, economic data, customer history and a host of other measures. It also allows illustrations in a brochure to match the race, location or interests of the recipient. The messages can be truly unique and compelling, but they are difficult to craft. It's a great deal of work, which is why we keep seeing, "Dear {Name} messages.

Currently, organizations gather operational data (products sold to customer, address etc.). When will we start gathering information about our customers that will demonstrate that we actually know them and have listened to them? We now have the technology. As one printer put it, "We can do more than write the customer's name in yellow snow."

It's like the marketer's back in school, sitting next to the prettiest girl in class and has grown helplessly silent. Perhaps he could try the variable data printing approach:

"Dear {pretty girl1}, You dated {team quarterback1}, would you like to go out with {me}?

P.S. What's with variable data software companies and the letter "X" - Xpression, ExStream, XMpie? Why can't they choose a nice, traditional corporate name, something like, um, Thunderhead Now.

Wikipedia article on Variable Data Printing

Marketing is not sales, but sales is a part of marketing

2010-01-19T16:52:00.002-06:00

If you can only learn one thing about marketing, please let it be this: Marketing is that herculean task of defining what business the company is in. It is the process of defining the product characteristics, the company brand strategy, identifying the target customer, selecting the right marketing channel, establishing the price, and the overall management of sales activities relating to all products and services. Too many organizations stray from this simple concept and allow sales activities to dictate marketing strategy. Why is this wrong? Well, let's see. The sales people want to hit their sales goals, that's understandable. But they have no brand goals, channel goals, or product development goals. They live and die by their sales. All the recommendations of the sales staff will be about hitting their numbers to achieve their performance bonuses for this year (and most times they recommend a price reduction). A sales plan is part of the marketing plan. If sales are not working then something is wrong with the overall marketing plan.

If you have a small business, and sales are slow, examine your overall marketing plan before you lower your prices. Once you've set customer pricing expectations, it's hard to change that perception.

Selling to friends and family

2010-01-19T08:18:00.003-06:00

Will social media and a bad economy turn your friends and family into sales prospects?

It's no secret that times are tough, especially for small business. Perhaps it's just a coincidence, but I've noticed an increasing number of emails and Facebook postings from friends that are really promoting their business's sales event. It's so easy, with Social Media, to broadcast sales messages repeatedly to your same group of friends.

Businesses use social media to make money, should friends do it also?

I like to help friends out when I can, but is this an evolutionary step for all social media - self-promotion? Do I spend a Saturday at a boat show, to show support to a friend with a booth? If my home builder friend is having an event in his development, do I come to that? Should every friend consider me a prospect? I've got a lot of friends - many with small businesses or a business that is a part-time venture. Can you expect your friends to receive repeated sales messages through multiple social media channels as a token of friendship?

Casual Users of Social Media should think about Campaign Management

When and where does the small business person flick the "off" switch on his or her marketing efforts? I don't know if there are clear answers. Honestly, if my business was in trouble, I might be using social media in the same way.

However, an element of basic marketing campaign management is to monitor the type and number of messages your prospects receive. If you consider your friends to be prospects, they should be included in your campaign management strategy for social media. Don't overwhelm them with repeated messages. Prospects are easy to find, friends are more difficult.

Don't argue with your customers

2010-01-15T17:59:00.006-06:00

You are not the customer

I was helping a friend who had a small chain of dry cleaners in my area. He asked me to review some of the marketing collateral that they had developed promoting their services. His business featured the new type of dry cleaning that used CO2 rather than traditional chemicals historically used in the dry cleaning process. It's a fairly new, environmentally "green" process.

His collateral hit all the expected message points:

the environment
gentle to clothes
pick up and delivery service
friendly people
Phone number, Website, and maps

As I was reading everything, he casually mentioned that his customers were spontaneously telling his store managers that they were amazed at how "clean" their clothes smelled after they got them back home. There was none of that "dry cleaners smell". He laughed and said that it was difficult to do an actual survey because that's all they wanted to talk about.

I nodded, and then looked down at all the marketing material spread on the table.

"Then, why don't you mention how good clothes smell when they're cleaned at your shops? Your copy doesn't even mention it."

"But that's not important" he replied. "The most important thing is the environmental issue and that our gentle process makes your clothes last longer when you use us. That's the value here."

"Not according to your customers. They're telling you what's most important to them. Why do you want to argue with them?"

That caused him to pause, but he still said he would have to think about it.

The most difficult challenge in marketing is accepting that you are not the customer - your customer is the customer. Even when your customers are wrong, they are still right. Sorry.

Basics of Marketing 1.3

2010-01-12T16:17:00.008-06:00

3. The four P's - Price

You may think that price is the most analytical segment of the marketing mix. After all, there are so many numbers and spreadsheets that you could work with here. There is cost of manufacture, cost of delivery, the cost of money, other overhead costs, etc. There are many rules in accounting that would seem to apply when devising the price of a product or service. In the world of accounting, you crunch several columns of data together until you attain that magic number which gives you the return on your investment that will make you smile.

If it was that simple, accountants would run the marketing department (and the world).

The truth is much different. I have seen large corporations, with the services of large teams of crack, emotionless accountants get it wrong. In the end, it's not about the targeted return, and it's not about your costs, it's all about understanding what the customer expects (or is willing) to pay for your product. You can have a very fine product and still fail because the customer expected to pay less or more. There is a great deal of the irrational that is part getting the price right.

As an example, let's take packaging. I have developed packaging for a number of consumer products. In focus groups, I always test several different packaging variations. Not just color choice, but brand treatment, fonts, and styles. Sometimes I mask these variations as "competitors" to the product that I'm testing. I then ask the group to rank the various candidates based on "cost". Which product do they think is more expensive? Why? Even with no more information than a package design, consumers will have an opinion. Many times this translates into an expectation to pay more for a "better" product.

It pays to set a price that is in line with customer expectations. If you are positioning a product on quality, you may actually hurt sales by pricing too low and becoming out of sync with your brand. Even more alarming, you are also leaving money on the table.

When you define your product and select your sales channel, you are also setting the range of pricing options available to you based on product packaging, point of sale, brand positioning and a host of other details not directly related to product cost.

Everything in the marketing mix must work together. You can not set a price without being fully aware of the pricing implications that are inherent in the other three P's - product, place, and promotion.

When companies succeed wildly, or fail miserably, it's because they succeeded or failed to develop a pricing strategy based on a robust understanding of what the prospect is willing to pay. You don't win the pricing war by setting ROI goals based on formulas.

In our digital world, companies sell a series of 1's and 0's in a software program for untold millions in gross sales - sometimes in competition with free products. At other times, however, that's not the case. Nothing has changed with the product, but the market has suddenly gone soft. In my negotiations with a variety of software vendors, I have sometimes seen the price fall by over $50,000 due to competition and market conditions. A year later, these same vendors didn't feel the need to bargain at all. A set value for their product is difficult to determine. In the end, the price of the product depends more on customer expectations than pricing formulas.

In regards to the traditional marketing mix, you can't set "price" without knowing "place". Where and how the customer buys your product plays a large role in determining what you may charge. Within a certain range, the product must fall within the price range of everything that is marketed through that same channel. Diamond rings, no matter how shiny, are not purchased at convenience stores.

Basics of Marketing: Product cost is a known number, price is an art.

Basics of Marketing 1.2

2010-01-10T13:19:00.005-06:00

2. The Four P's - Place

(This is the second in a series covering The Four P's of Marketing. This is part of my basics of marketing series)

Place: The sales channel(s) where your product is purchased
(retail, Internet, direct mail, etc.)

What we soon find when using the four P's (product, place, price, promotion) to develop a comprehensive marketing strategy, is that no matter which "P" we start with, the decisions that we make on one of the "P's" begins to dictate the choices that are available to us on subsequent "P's". This is true no matter where we start in the process. Let's take a look.

Imagine that we start with the traditional first "P" - Product. We design a high end, feature-rich product with a high price point. The product design automatically eliminates certain points of sale (Place) , a convenience store located in a gas station, for this example.

Conversely, if we have access to a distribution channel controlled by a gasoline retailer, we can't design a high-end product to sit near the bread, milk and chips. Our product is in an inappropriate "place".

As we will see with the product, place, price, and promotion categories, each part of the marketing strategy must be congruent with the remaining sections. This is especially true for a new, unknown product. Your selection of where and how the sale takes place will influence the consumer's perception of your fledgling brand.

There are other considerations for "place". How does your selection of a sales channel affect the retail price? How much control do you have over this channel? Do you have an exit strategy for a new sales channel if the first choice fails to work out? How much do you know about the typical consumer for your selection of "Place(s)". Does the demographic profile of the consumer who purchases the most product (as in our example) a retail store in a gas station, exactly match the best case profile of your prospect? We all purchase gasoline, but many of us seldom buy a bag of chips from a gas retailer. Your prospect may buy gasoline every day, but if that same prospect never buys groceries and gas at the same time, your marketing efforts are probably futile. You will need to understand the consumer psychology that is always an important part of choosing a sales channel. Your customer must expect (or at least not be surprised) to see your product on the shelf AND be willing to buy that particular product through that same sales channel. Just because your customer is in that retail environment does not mean he or she wants to see or buy your product in that same environment.

Basics of Marketing: When you make effective choices when building your marketing strategy with the 4 P's, you make it easy for the prospect to become a customer.

The Marketing Mix

2009-12-23T09:03:00.012-06:00

1. Marketing with the 4P's

With open markets and a digital world, the nature of marketing has changed fundamentally around the world. In this new business climate, no one owns a small business anymore. Whatever the size of the shop, competitors can easily be found both locally and internationally.

Much has changed, but not everything. Even in this new business arena, the old marketing acrostic of the "4Ps" (product, place, price, promotion) is as relevant today as it was 80 years ago. The "4P" approach to marketing still allows a business owner to clarify his or her thinking when developing plans for a new business. Here's a review.

Product

Although products today can be physical, digital or virtual, business can only begin when you have something to sell. The first "P", therefore, is product.

Some marketers like to think that the first "P" is all about describing your potential product. In other words, what your product "is". I think it's just as helpful to focus on what your product "is not". What the product "is" and "is not" are the most important questions you will answer when developing a marketing plan. Here's why...

Let's assume that your company will be selling "widgets", a useful product for those times when only a widget will do. Let's see how we can define a product, by only focusing on what it "is".

The widget is (or will be)

1. What will the widget do? What service does it provide? What is the value of that service?
2. How will the widget operate? Will it be similar to it's competitors?
3. What is the market for widgets?
4. What is the design of the widget? Is fashion or style an important part of the product?
5. What quality milestone do we want to hit? Will this widget be obviously better than competitors? How will the customer recognize this? Is being better important? Why? How does quality impact sales? What are the service implications?
6. What will be the brand identity of the widget?

The widget is not

1. What widget-like things will the product not do? Do some widgets have added functions that add to cost but are not important?
2. What part of the widget market is the product not intended for? Luxury widgets? Brand name widgets? What is the size of the market that the widget is not intended for?
3. What design and fashion elements are we not addressing with this widget? Why?
4. What is not part of our widget brand?

By asking both the positive questions (what the product is) and the negative questions (what the product is not) you get a better understanding of the design of your product. Every decision that you make in product design has both a positive and negative impact on future decisions on the three remaining "P's" - place, price and promotion.

As an example, Nike markets quality sports shoes, but they don't market (at least under the Nike brand) "bargain" sports shoes. Or "fashion" sports shoes. Your product decisions tell you what the product is and what it is not. It is typically sound business strategy to target a segment of the market. It is generally a fool's errand to try to be all things to all people. Answering the many questions about your product begin to prepare you for the competition that is to come.

Basics of Marketing: As much as you may want it to be, your product cannot be all things to all people.

More in following posts.

Web traffic: It's all in your title

2009-10-19T15:05:00.003-05:00

Increase traffic to your business site or blog

One of the many things I do to extinquish any hope of having available free time is to write articles for various Websites. As most of us have heard many times, basic keyword selection and weighting is vital for being discovered on the Web. I have found, however, that keywords are not the most powerful tool in gaining traffic to a Website.

First in line (it may seem obvious) is to choose a subject that a great many people are interested in learning more about. Being first on Google on a banal topic is of little importance since the traffic to your website or blog will be negligible.

Second in importance is the title you choose for your site. If your title selection matches a key search phrase or reflects the words that an average person would use to conduct basic research on a topic, you will do well.

Keywords, of course, are a strong support, but they are number three in importance ( in my humble opinion).

If you want to create a basic website that will be a winner, be sure your title(s) on your Website is a natural search term.

Use a book to build creditability

2009-09-02T10:10:00.004-05:00

Recently, I put my book on Mobile Search and Local Search Marketing on Amazon. It's a short "how to" guide on how to increase your company's profile in local markets and Web phone searches. Now, when I consult with small businesses on local search marketing, I give them a copy of my book - I also use it while prospecting. One added bonus, is that it sells on Amazon. The revenue, while small, is always a pleasant surprise. If demonstrating expertise in your chosen field can help build your business, then self-publishing seems like an excellent tool. Today, with POD technologies, the only expense required to get your book on Amazon is the amount that you pay for a review copy (or two). I've found that customers really respond to an expert's opinion and experts always have a book!

Sell Photos Online - My Friend Finds Success at IStockphoto

2009-08-24T10:11:00.005-05:00

IStockphoto Success Story
I'm sure most people have read how IStockphoto revolutinized the stock photography market almost a decade ago. In previous posts, I've profiled David Lewis, he's a friend who had developed quite a business as a semi-pro IStock photographer. In addition to his day job, David submits photos to IStock. On just about any weekend, you can find him out on a shoot. His daughters are a favorite subject, along with his hobbies of biking and rafting. After about three years doing this, he has built up quite a portfolio. He typically makes about $50,000 a year in additional revenue from his photos - not a bad deal.
As an Update: I checked in with him at the beginning of 2010. He has over 2,000 photos at IStock, still has his day job, still can't keep from smiling. Most "Internet-riches" stories are fabricated, but his is real. So, for everyone with a dream - it's possible! It's important to note, however, that David always loved to take photos and had a natural talent for it. A natural affinity for your chosen business is probably the most important ingredient for success for anyone. Check out his portfolio on IStock, he is listed as dlewis33.

Mobile Search Marketing

2009-07-23T20:41:00.003-05:00

Mobile search and local search marketing are giving small business a tremendous opportunity to market their products to their local community. For early adopters, it also provides a chance to stake out a dominant position in search results. How important is mobile search? By 2011, their will be more searches via cell phones than PCs. I've written a new ebook on mobile search for Amazon Kindle. Check it out! Mobile Search Marketing

Online Advertising with Affiliate Marketing

2009-02-22T11:10:00.003-06:00

Can affiliate marketing grow into non-traditional areas?

We've already seen how an upstart company like IStockphoto can change all the rules in a category such as stock photography. Now talented amateurs can compete alongside professionals in a business category that was once reserved for a relative handful of competitors. Now, thanks to IStock there are literally thousands of competitors in this category - mostly amateurs. The result was that the cost of stock photography dropped dramatically. Some photographers may argue that the quality has fallen as well, but it is not a winning argument. Stock photography will never return to the old paradigm.

The same could be said for digital printing. Customers are no longer limited to their local printers, electronic files can be sent anywhere. The cost of printing is now lower thanks to the expansion of competition.

Affiliate marketing has allowed amateurs to enter the domain of professional advertising agencies. When an individual signs up as an affiliate of a company, he places advertising online (at his own expense) for a company. If his advertising results in a sale, he gets a commission on the sale. In effect, the company gets free advertising and the individual gets commissions on the sale of products that he doesn't own. To date, this type of advertising has been the province of second tier companies like florists or golf products. Disney, however, is now testing this concept with their "movie club".

I can't help but believe that these challenging economic times might force more mainstream companies to consider the possible benefits of affiliate advertising. It's hard to argue against free advertising when economic times are so challenging. If I'm right, we may see advertising agencies struggle against this new challenge. After all, how do you compete against free? The expansion of affiliate marketing seems to be inevitable in this bleak economy.

Small Business Marketing with PowerPoint

2009-02-14T11:17:00.003-06:00

Small Business Marketing Tip

If you have a small business, then you understand that every marketing effort you undertake must work on several different levels. You don't have the staff or the budget to undertake a slew of different marketing tactics. For example, if you pay a graphic artist to create an ad, it should work for the local newspaper or the high school yearbook. You want to get the most value out of each marketing investment you make.

Get the most marketing value from a PowerPoint

If you have created a PowerPoint for your business, don't confine your presentation to you laptop computer. You should also upload it to a service like SlideShare. How does that help?

If you tag it with the correct wording such as "Small business consultants in 'your city'", you have an excellent chance to become a high return for a search for small business consultants in (you guessed it) your city. Of course, you will need to change the tag information to make it appropriate to your business. For example, new home construction in Smallville.

Put your Small Business at the top

Thanks to Google's emphasis on Local Search, you have an excellent change to get a high ranking with a PowerPoint presentation. Take advantage of it.

Advertising in Tough Economic Times

2009-02-03T16:48:00.003-06:00

Don't Forget Direct Marketing

Every time the economy turns sour, businesses always cut back on advertising. It's understandable but counterproductive. You may have to make your budgets tighter, but you can be smarter with your decisions.

For example, we hear that everyone is cutting all media except for Internet. Does that make sense? Are your current customers searching for you on the Web?

Your most valuable asset is your current customer base. If you had 30 seconds with a customer to convince them why they should keep buying your product instead of cutting back, what would that message be? It has to be strong, direct and clear. Work on it till you get it right.

Drop them a line.

Automated Telephone Calls for Marketing

2009-01-30T08:06:00.004-06:00

Marketing technology doesn't have to be used
Everyday at around noon, I get an automated telephone call on my cell phone. It's a recorded message from a company that sells a service that will create these recorded phone calls for small business. It's the most irritating interruption to my day. I can't think of a poorer, worster, lamer, (choose your word) marketing plan than to send out unsolicited recorded messages to customers and potential customers. Why can't marketers understand that just because a technology exists you don't have to use it? I don't mind recorded calls from my library telling me that a book I reserved is available. It's performing a service and I can understand it helps the library save money, etc. But a recorded message in sales? I immediately understand that they don't care about me as a potential customer, they're simply trolling the waters. Now, let me think, which customers or potential customers do I want to send that message to....

Marketing with Image Search

2009-01-19T13:04:00.003-06:00

Thanks to Google's Universal Search, there are a lot of new ways to appear at the top of search engines. One of these is Image Search. Google will be returning appropriate images back to searchers is a "blended" results page. It's another chance to get to the top of Google results in a very competitive field. Each returned image, of course, will link back to the site that supplies the image.

To help your chances of your images being found by Google, make sure that your image tags provide detailed information on what the image is about: 2009 Ford Mustang Image. Also, make sure that it is found next to relevent text about the 2009 Ford Mustang.

Of course, it helps if you are not competing in the consumer marketplace. For example, in some large, slow-moving, business to business categories, it is still possible to add an image that will be picked up by Google. Identify the image with the keyword that you want to target, "variable information printing image". Long-tail key words have the best chance to find a top image return in Google results.

Old Style Corporate Communications

2009-01-16T14:53:00.003-06:00

Milner Hotels

(As a little diversion from modern marketing)

My dad spent much of his career at Milner Hotels, a chain that started in 1900 and lasted until the mid-60's. It was a hotel for traveling salespeople in an era in which people didn't mind sharing a bathroom with the people in the next room. At one point, it advertised itself as being the "World's Largest Hotel Chain" - but that was in an era in which the numbers to achieve that ranking were much smaller than today - but still a significant accomplishment .

At any rate, I am always on the lookout for Milner Hotels memorbilia (which is seldom available). I found a guest magazine published by the Milner organization from 1954 on eBay. It was a monthly publication that was distributed freely in the hotel, to employees and by mail to people who wanted a subscription. There are no ads (except Milner promotions) and is a whopping 50 pages of text! The articles are like Dale Carnegie articles about being a good friend, a better person, and loving the good old USA.

What a different world. There are also profiles of hotel guests that would be impossible to print today. Let me summarize a story from the Enid, Oklahoma, Milner Hotel: A man called "Pistol Pete", who was 92 in 1954 had stayed in the Hotel the previous month. Decades before, he participated in the fabled Oklahoma land rush. In the article he relates how he had tracked down his father's killers as a boy and shot them with a pistol he still carried. He presented the gun to hotel guests, but now, however, it carried 6 notches on the handle. There is a photo of him in his cowboy gear and gun in the lobby of the Milner. Overall, it's a very admiring story for, well, a man who claims to have killed six people who might have had a different version of how his father died.

If that wasn't enough excitement for that month's Milner Hotel Traveller, there was also an article about a manager who found an elderly guest dying in his room. The man was taken to a hospital, but soon died. It was not usually for people to take up residence in a Milner Hotel, and he had lived in the Milner hotel room for 6 months prior to his death. The manager returned to the old man's room to try and find some indication of relatives to contact. He found, however, a cardboard briefcase with $250,000 in securities. That is like finding $1 million or more in today's money. Like you, at this point I'm beginning to think this is all PR. But the man is identified in the story and he's a former state politican and there is some amount of detail. Sooo, I guess it's possible. The manager, of course, turns in the suitcase and is given $100 reward.

Just another month at Milner Hotels. I bet my dad couldn't wait to get to work to see what would happen next! I'll have more from Milner Hotels in my next post.

Local Search Marketing for Small Business

2009-01-16T10:59:00.002-06:00

A Power Point on Local Search

Local Search

View SlideShare presentation or Upload your own. (tags: business small)

Web Video Marketing Opportunity Grows for Small Business

2009-01-12T16:22:00.004-06:00

A new report from Forrester continues to track the growth of online video as a marketing tool:

64% of people online watch video on the Web in a typical month
The Average viewer watches 56 minutes of online video a week
In a typical week, 109 million hours of video are watched

Forrestor predicts that online video advertising will grow to $7.2 Billion by 2012.

Right now, everyone can upload to services like YouTube for free, but I wonder when the big money takes over this medium if that will last. It's a great tool for small business to get seen in the competitive world of online marketing.

Search Rankings

2009-01-08T07:47:00.003-06:00

Although most businesses would agree that their Internet search rankings within their business category are important, few do anything to protect them. Most businesses don't even track their rankings very effectively. If you went to a business, large or small, and asked who had the responsibility to conduct regular generic Web searches on Google and Yahoo to keep track of the company's search rankings, I'd expect you'd see a lot of finger-pointing from the Web team to Marketing to Corporate Communications.

At a small business? It's just another duty for a stressed-out owner. You need only to look at the millions of unclaimed local business listings on Google and Yahoo to answer that question.

I recently conducted a search for Variable Information Printing software on Google. This expensive software is sold by large companies like Xerox and HP. The search listing returns showed multiple listings for a free shareware product, that was being sold by a legion of different "Black Hat" Web sites for $125. These spam sites crowded out the major competitors from the top listings. XMPIE, sold by Xerox, was the 80th return.

Yahoo, however, showed completely different results with Xerox as the first search return.

I'm sure at some point, someone at these major companies will notice this, and complain to Google, but not until weeks, perhaps months, have gone by. I wonder whose job it was to keep track of this? I bet it was someone in marketing, or maybe some guy on the Web team...

Local Search Marketing Grows

2009-01-07T10:41:00.005-06:00

At the Search Engine Strategies conference this past month, Yahoo reported that local search continues to grow as a search preference, far exceeding searches on Internet Yellow pages. This increase is seen as a "total" number and an as an average number of "local" searches conducted each month per searcher.

In a poor economy, consumers will increasingly try to find cheap, local solutions to their product needs. Taking care of your local profile on Google and Yahoo is the biggest opportunity for small business to improve market share - and it's free. You'll be hearing a great deal more about local search marketing in the near future.

What Barack Can Teach Small Business

2008-12-31T09:05:00.008-06:00

What lessons can any small business learn from the phenomenal marketing success of Barack Obama? Here is the story of how the ultimate small business (one man) attempted to capture majority market share in the national marketplace - the Presidency. Well, as we know he oveturned established brands (Clinton, McCain) and created a new brand image (change) that no one could match. It was a brilliant strategy to turn the long experience of competitors into a weakness and then exploit that weakness.

Isn't that the challenge for all small business competing with larger, more established companies? How can I make a major competitor compete on my terms, not it's terms. The book may be incredibly useful in helping you think about your business in new ways. It's something that a maverick small business marketer might try!

In a nutsell, the book suggests that Barack won with the mantra: Be Cool, Be Social, Be The Change. That's pretty good position for marketing any small business.

Marketing with Video

2008-12-21T21:31:00.002-06:00

For awhile now we've been hearing that video is the future of marketing. I tend to believe it, videos are persuasive and can convey information more easily than print along in a time-pressed, multi-language America.

If you need further convincing, look at the most recent reports on the number of searches conducted on various search engines. More searches are conducted on You Tube each year than on Yahoo. In fact, this past year searches on Yahoo dropped by 5%.

The Numbers:

You Tube: 2.6 billion searches

Yahoo: 2.4 billion searches

Although You Tube is not a general search engine, the numbers certainly support the argument that videos will be a key marketing component going forward.

Good news for video production companies and amateur videographers on the corporate web team.

Using photos to build local traffic

2008-12-06T21:14:00.003-06:00

While we're on the subject of Google Local(see previous post), remember to upload a photo to your local listing. It's always amazing to me how indifferent small business is to Google Local. Take a moment to upload a photo of your storefront, maybe a shot of your store interior. Why not make use of this wonderful self-promotion opportunity? If you're really uncertain about the value of Google Local, why not set up an account and see how many "views" your listing is receiving?

Google Local Search

2008-12-02T20:52:00.004-06:00

I almost titled this post, "Go Search Yourself", but I thought that might be a bit too cute. For small business, however, Google's new addition of local search results is a significant change to the dominant search engine. One aspect of this new local twist to search can directly affect small businesses which may still think that Web search is not a big factor in their profitability.

For example, if you do a search for Riverside dry cleaners, you now will see a new arrangement of returns. These new local results come with customer reviews attached. I know that having a review will drive a dry cleaner to the top of the list if the there are no reviews for the other cleaners (I wrote a review for my dry cleaners and up it went!). I am also guessing that the number of "stars" associated with each review will also affect placement. I can see a near future where small business owners will be beseeching friends and family members to give their business a review.

I can also see where a devious competitor could log on and "flame" the competition with a series of scorching, negative comments. I have read about lawsuits already beginning over libelous and unfounded comments. For the long term, I can't see Google wanting to moderate these conflicts across the world. But for the short term, it's probably a good idea for small business owners to start each day with a Google search for local listings in their business category.

eMail Marketing Campaign Measurements

2008-11-24T14:24:00.004-06:00

eMail Marketing Campaigns are Most Cost-Effective Tool

If there was any doubt that eMail Marketing will continue to grow as a DM tool, here are two statistics to consider:

1. The Direct Marketing Association estimates that eMail marketing brings in $45.65 for every dollar spent.

2. The average cost per order through the eMail channel is less than $7 compared to $84.21 for banner ads according to Shop.org.

What can stop this train? The most likely scenario is over-use by marketers who look at these kinds of numbers and flood the Web with poorly-crafted campaigns. Like many other things in this world, success brings its own challenges.

What's in a domain name? - iMediaConnection.com

2008-11-18T10:22:00.001-06:00

If your website is used to draw in consumers, your domain should have the same magnetism as your brand. Here are tips for prioritizing and optimizing your domain strategy.

View >>

Using Monthly Statements for Marketing

2008-11-16T22:16:00.004-06:00

The Canadian Postal Service Website has a great article on designing monthly statements with a marketing / customer service mind set. In this new era of financial constraints, every piece of mail that a company sends should be utilized to its fullest. There's also an online test to help you evaluate your own statements.

http://candadapost.ca

For those of you who don't speak Canadian, remember to use the Google translation service.:)

How to Build a Small Business Brand

2008-11-11T12:31:00.005-06:00

Social Networking and Small Business

Small Business Note: It's been said that a brand is an emotional connection customers have with your brand. I like this definition and it sort of addresses the fact that a lot of brand strength comes from factors like group belonging, social networking, and self-identity. These are things that would be difficult to discover in the ingredients in a bottle of Coke.

Dodge Talks is a great example of online marketing taking products and building them into a social networking component. It has a lot of product info mixed with discussion boards and live forums with Dodge engineers. Whatever car model or brand you prefer, Dodge Talks is state of the art in taking brands into the social networking arena.

For small business, the challenge will be to find ways to add social networking to your marketing mix. It's the growing category in online direct marketing.

Building a Small Business Brand

2008-11-10T16:23:00.007-06:00

Remedy or Replica - What is Your Small Business?

Small Business Challenge: I just heard this in relation to the Presidential campaign, but I think it works as a starting point for any effective brand campaign. How are you positioning your brand in relation to other products in the marketplace? Are you a remedy or a replica? There's an important difference.

A remedy solves a problem, it can be entirely new and not similar to anything on the marketplace. Since it is so new, it can have a price point that is new as well. But, to make this kind of claim, you better have evidence to back it up.

A replica is just like others already on the market. A replica is so similar, that you won't notice any difference. A replica always is judged on price, since a replica is never (almost) better than the original.

Your small business brand's first decision, then, is it a remedy or a replica? How does it fit with your online direct marketing strategy?

Resource for Small Business Marketing

2008-11-10T14:09:00.009-06:00

Information for Small Business Marketing

Small Business note: A great resource for small business marketers is the Know This site. In includes a pretty comprehensive outline of the components of a marketing plan. It's content rich and has been around for a long time.

When you log on you'll be able to search through their extensive definitions of small business terms and definitions. They also cover various aspects of online marketing.

See resource links for link to site.

What is Small Business Marketing?

2008-11-10T10:28:00.012-06:00

Basic Marketing: Answer the Right Questions for Web Results

If you're trying to help your small business get noticed online, here's something that you should know. Many times people search by using a question for a keyword(s). It's a good Internet strategy to know the questions most frequently asked by your potential customers and then answer those questions on your Website. There's a great Webtool that helps you identify the questions that your customers are asking.

Anyone involved with online marketing knows how difficult it is to "own" a highly profitable keyword. Using the keyword as part of a frequently asked question allows greater opportunity to create a higher search return on a keyword that is of special interest to you.

How can I make my small business grow?" may be a keyword question that will help you target the overcrowded "small business" search term. What do people want to know about in your small business category? What questions will help your online marketing campaign?

See tool on Resource Links

Lessons For Small Business Marketing

2008-11-01T07:37:00.014-05:00

Entertainment Marketing: High School Musical 3 - Senior Year

Small Business Note: The High School Musical juggernaut continues with the final installment - at least for the current cast. It's been a great marketing success for the Disney organization, but its ending left a sizable number of pre-teen girls disappointed. In the movie, Troy (the hero boy) ends up in college with Gabriella (the hero girl). Isn't that the happy ending everyone wanted (and expected) from this squeaky clean musical? Did the Disney marketing department miss something?

Yes, if look at the You Tube results online. You Tube hosts many fan-based videos online, cobbled together by these girls about their fav musical. Guess what? Disney missed something big. It seems a legion of little girls are rooting for Sharpay (the bad girl). Sharpay is easily the most interesting character, beautiful, talented, self-obsessed and with a never-ending obsession for Troy.

The Sharpay online fan base videos use existing film footage and photos to create an alternate universe where Troy and Sharpay get together and Gabriella is on the outside looking in. One of these alternate story line videos has over two million views! It seems the Shartroy (as these girls actually refer to it) story line could sell some tickets.

Why are the little girls rooting for Sharpay? I think it's because the movie shows us what happens when Sharpay doesn't get her way. She collapses in tears, typically alone, while everyone continues on having the dream time that childhood is supposed to be. Gabriella is beautiful and controlled. Even when things don't go Gabriella's way, she handles it smoothly and calmly, just like a perfect, mini-adult.

Not so, Sharpay. She handles loss like a little girl, no wonder they're rooting for her online. They can see that's she's vulnerable and scared one moment and dreaming the biggest of dreams the next. Even with her faults, Sharpay is more like them than the perfect Gabriella will ever be. And just like Sharpay, the little girls in the audience want to know that, even with their faults, they can still get the cute guy. And if they have to create an alternate universe on You Tube to make it happen, so be it. I mean, creating an alternate universe just so you can win, doesn't that just sound like Sharpay?

Big business or small business, sometimes you're lucky in spite of yourself.

Small Business and Obama

2008-10-29T18:45:00.018-05:00

Marketing Obama and McCain - Presidential Brands

A Presidential campaign may seem far removed from a small business, but it's not when you consider brand building. One of the many definitions of brands is the "emotional connection that consumers have with a brand." Consumers sometimes feel a loyalty to a product that's not based on objective measurements, but rather associations with intangibles such as family memories and perceived status enhancement. Once a strong brand is established, consumers are loathed to switch products, no matter what justification is placed before them. This reluctance to challenge their preconceived notions sometimes causes the most loyal customer to become almost fanatical in their confidence that their preferred product is best and the competitor's product is inferior, even if they don't have any facts to base that judgement.

Candidates are brands just like any other product. Consumers make their pick (typically along party lines, most often because of perceived shared values) and then look for reasons to maintain their original decision rather than change it.

I have a friend who is a die hard McCain supporter. She forwarded this obviously false online rumour to me, with a note decrying the lack of news coverage on this story. Someone who had less of an emotional connection to the McCain brand would probably spot the flaws in this story right away, but my friend, a really bright person, was blinded by her strong brand loyalty.

In a nutshell, the supposed story recounts a recent visit of Senator Obama on the "Meet the Press" television show. According to the account, Obama talked about his wife's disregard of the flag and his desire to change the national anthem to, "I'd Like to Teach the World to Sing."

It ends with a tirade on why the main stream media ignored this story. Obviously, it was part of some last minute political online marketing campaign.

Who could believe that McCain wouldn't have TV spots on the next day with excerpts from that appearance if that were true? And isn't "Meet the Press" mainstream media? The story is so outrageous, it's funny in its own way.

But my friend was blind to lack of basic logic or believability. She was just like every other consumer with a strong brand preference. Her brand loyalty made her blind to reality.

It could be easy to judge her as an unthinking consumer. But, that's too easy. I have my favorite brands also. I wonder what I'm missing, as well?

Small business success is shaped by many factors, irrational consumer beliefs are one of those factors. It's a safe bet, however, that future success and business threats will come from online marketing campaigns that challenge your small business brand.

SlideRocket for Small Business Presentations

2008-10-28T12:39:00.013-05:00

Basic Marketing: How to Make a Great Presentation
If anything is the lifeblood of marketing, it's the act of making presentations. Marketing is all about making presentations to sell ideas to executive management and products to customers. SlideRocket is a new Web-based presentation tool that will be a serious rival to PowerPoint - the office standard for business presentations.

Moving traditional office software products off the PC and onto the Web is the hallmark of Web 2.0. For presentations, the Web offers many advantages. SlideRocket leverages the power of the Web to easily bring in photography, high-end graphics, and video into a presentation. The net result of the convergence of media into the presentation is stunning. It's not that all of this can't be accomplished by PowerPoint, it's just made easier and faster with SlideRocket.

SlideRocket has several price points ranging from free to enterprise level with hundreds of users. SlideRocket is already creating a buzz in the Web 2.0 community, log on to see what the buzz is about.

If you have a small business that makes a lot of marketing presentations, this online resources provides a great resource for a small sales staff.

How to Use Slide Rocket

How to Increase Small Business Productivity

2008-10-27T12:56:00.012-05:00

PocketMod Is the Productivity Tool for Marketers

Anyone involved in marketing knows that the demands on your time are legion and your things-to-do list is an alligator -- a beast that is always snapping at your heels. Anything that enhances your productivity is a welcome relief.

One productivity tool that I use every day is PocketMod, one of those creative solutions that we all wish that we had thought of. This free, online tool is found at http://www.pocketmod.com/. The Pocketmod site lets you take a single piece of paper and transform it to a small, pocket-size booklet that fits into your..er..pocket.

What's amazing about the Pocketmod system is that it allows your single-page booklet to include a to-do list, a calendar, shopping lists, and next steps in your marketing plan in an easy to read format. It's easier to watch the video than to struggle through my explanation. Remember, it's a free tool so some of the features like RSS feeds don't work all the time (well, actually, almost never). But, I use it every day, and by then end of a very long day, it looks as well-worn as I feel. It reaffirms the power of a single piece of paper in a digital world.

A small business has to succeed with limited resources, stretching time stretches resources. Breaking down your small business marketing strategy into daily steps helps to achieve your goals. See backlink for TechCrunch article.

Learning How to Manage a Small Business

2008-10-03T09:55:00.009-05:00

The government of the United States was developed under the idea that nobody
knew how to make a government, or how to govern. The result is to invent a
system to govern when you don’t know how.

Nobel prize-winning physicist Richard Feynman (1963)

Small Business as Improv: Above is a quote I stumbled upon recently in a book by David Jennings. In small business marketing, we must compete in arenas where we are underfunded, understaffed and unprepared. New technology makes a myriad of new media applications available to us, but many business owners fail to try them out because they don't know how to do it.

But, of course, the way to learn how to ride a bike is to get on one, fall off, and then get back on. Our only concerns should be to know that a busy street is not the place to learn how to ride a bike and be sure to wear a helmet. That's all we really need to know before we begin. All that follows the start is valuable learning experience of what to do and what not to do. You can't learn to ride a bike by reading a book, nor can online marketing occur offline. It's called the small business school of hard knocks.

Net, Blogs and Rock ‘n’ Roll: How Digital Discovery Works and What It Means for Consumers, Creators and Culture by David Jennings Nicholas Brealey Publishing (c) 2007 9781857883985

Buzz Marketing for Small Business

2008-09-28T17:53:00.012-05:00

Viral Marketing

Positive word-of-mouth (WOM) by your customers has always been considered the most effective product promotion available. The problem has always been to find an effective way to create and monitor customer word of mouth for a new product. Bzz Agent is a PR firm that is helping companies to manage WOM.

Bzz Agent has developed a legion of reps across the nation representing a cross section of America. Their mission - to spread the word during the introduction of new products.

I am one of a multitude of BZZ Agents (really just volunteers interested in new products and finding out what's next) who receive a products on our doorstep that fit our life circumstances and interests. I recently participated in a campaign for Sureshots, a health drink that helps to lower blood pressure. My assignment was to use the product and talk to my circle of friends about Sureshots.

Sureshots is one of many new food products that are helping people find natural alternatives to medication. Sureshots is a flavored milk in a small bottle that has added Potassium. Potassium has been shown to help the body lower high blood pressure.

The nice part about Buzz Agent marketing is that nothing is hidden. Bzz Agents are required to disclose their role with their friends as representatives. When a Bzz Agent provides a final report, everything, good and bad, is included. Word of mouth is difficult to track, but Bzz Agent is an effective step in the right direction.

For small business, positive WOM is the most cost effective marketing campaigns. Product samples are only one way to build WOM. Giving existing customers your business card and asking them to give your card to anyone they thing could benefit from your services is another. Using article marketing as part of your online marketing strategy is also a good idea.

So, what about Sureshot? Well, so far word is positive...

The Future of Small Business Market Research

2008-09-24T08:03:00.016-05:00

One of the most proven techniques in marketing research is to take a small segment of the market (called sampling) for analysis to discover trends, needs or insights that might be applicable to the larger market. Remarkably, even a small sample size can be highly predictive of important, previously unseen consumer patterns. Until recently, sampling smaller parts of a larger target market was necessary because expansive computing power was unavailable (or unaffordable) to work with all the information that could apply to a large customer base or target market. Projects of this massive scope would require mega-power to crunch hundreds of thousands of data fields in varying configurations, searching for insight - not practical without some secret government agency computer. Sampling is a much better process that only requires a researcher to develop a theory and then find a small, representative group lifted from the greater whole to test. As a research procedure, it is tightly focused, clearly defined, and helps to control access to valuable computer time.

However, things will be different.

With increases in computing power, the day is approaching that desktops PCs will be able to easily manipulate the largest files containing thousands, perhaps millions, of varying data fields. Although useful, sampling will be unnecessary when it is practical to study the entire market.

Soon, there will be a day when marketing computers will have free reign to constantly plow through databases on their own, sorting, combining, and straining customer data looking for the anomalies that could indicate unexpected trends or insights. We can see a time on the near horizon where there will be no need to restrict access to computing time or limit the number of data files to include during research.

Why is this important?

Sampling requires human effort and resources to decide on appropriate test size, questions and utilization of corporate resources. If all data is available all the time then computers can work on their own randomly comparing data fields looking for statistically significant variables. As the speed of research increases, then the research testing justification threshold is lowered and more obscure or non-apparent customer research projects have their day in the sun, leading to unexpected market discoveries. Today, research is limited to what seems reasonable and justifiable, just think of what we might learn when we throw reason to the wind?

Small Business Worries About Future of Web Marketing

2007-12-27T22:21:00.005-06:00

Basic Marketing: the future of the Internet

The founder of IBM, Thomas Watson, is often quoted as predicting that the world only needs five computers. Well, according to Nicholas Carr, in an interview in this month's Wired, his prediction is coming true thanks to the Web.

As privacy worries decrease, and more and more people turn to the web to store their photos, financial records, payroll, etc. the Web is becoming the central computer to the world. Carr sees dark things in store, with such centralized information and control. After a few more years of consolidation, a big company like Google or a big country like China, could use this information for their own ends.

As this trend continues, home computers could become more like terminals - access points for data submission and retrieval - all computing moving to the giant web super computer.

Read more at Wired - the article is titled, "Do You Trust Google?"

Santa Claus as a Small Businessperson

2007-12-22T18:31:00.005-06:00

Market Dominance Slipping for Santa Claus

The Original Small Business: For decades, centuries perhaps, Santa Claus had enviable market position during the Christmas holiday. He had a zero price point, proprietary delivery systems, and one of the strongest commercial brands on the planet.

In recent years, however, Santa Claus has seen new competitors begin to erode his market share. Kwanzaa and Hanuka, offer competing visions of a December holiday. Additionally, the Internet can deliver many of the most popular Christmas gifts such as media downloads for free and at speeds faster than the famous Rudolf express.

Earlier this year, Santa weathered a PR crisis in Australia when his personal assistants were accused of inflammatory use of the ho, ho, ho word. Although this case was settled out of court, some damage to the flagship brand resulted.

Market experts are recommending certain enhancements to the Santa business model to remain competitive. Highlights of the report include:

1. Develop a customer feedback system to ensure satisfaction. Did that sweater fit? Was it what you expected?

2. Expand the brand through product extensions. A possible tie-in would be the Fourth of July. Independence day could be a second day of gift-giving, giving Santa valuable exposure mid-year.

3. Develop a local presence. Although traditional, the North Pole seems unreal to today's consumers. Regional centers of operation will allow direct interaction with the "Santa experience". Nashville, Tennessee will be selected as home for a regional center as a market test.

It's expected that Santa's long experience in the marketplace will carry him through a temporary market challenge. Name recognition, a quality product line, and cheap labor will be hard for competitors to defeat in the long run. Perhaps more importantly, Santa has the best tag line in the business - "Merry Christmas to all, and to all a good night."

Small Business Has Trouble Answering Customer Issues

2007-12-21T18:40:00.005-06:00

It's the Questions that You Don't Hear That Hurt You

There's a section on most Websites titled FAQs - Frequently Asked Questions. Those are the questions that a small business loves to get. They're predictable and the answers are easy and pat. They also give a business the comforting illusion of control. All of the customers objections are already known.

Yes, there is value in answering the frequently asked questions, but there is more to gain by discovering the questions that you never hear - the questions that customers are afraid to ask. Those questions may teach you more about your business and your customers than any of your FAQs.

Ten Things I Hate About You

What are your small business features and benefits that your customers prize most? Those are easy questions to answer. A more interesting question is, what are the most negative aspects of your business model - in the opinion of your customers? Can you rank them in importance? In other words, what do your customers dislike most about your business or product?

This is more than a simple intellectual exercise. These are the flip side of small business FAQs that your competition is working on right now. You'll have a more secure future if you can satisfactorily answer these questions before your competitors.

Sales and Marketing

2007-12-20T09:17:00.008-06:00

Personal Selling Gone Awry

Several years ago in my town, there was a local brake shop that advertised heavily on the radio and experienced tremendous sales growth as a result. Almost everyday, your could hear the owner would engage in down home banter with a radio personality for 60 seconds, and somewhere in their humorous give-and-take there would be a soft mention of the weekly special. The owner was naturally funny and charming, and you couldn't help but think he'd be a great guy to have along on a fishing trip. As you may have guessed, his shop was wildly successful and he was a market leader in sales, even compared to national franchises.

On one rainy Saturday, I found myself at his shop along with several other customers waiting in a long line. God must have smiled on brake shop owners that day because the mechanics were already busy, working in several bays at the start of the day.

The gregarious owner of the shop was on the phone, and since he was the only one signing customers in, we all waited, rain dripping from our coats, but patient nonetheless. With nothing else to focus on, we all listened and waited for the phone conversation to end. By his manner and tone, the owner was apparently speaking with an older woman.

"Now, Mrs. Smith, I don't know what we'll find when we take your brakes apart. We'll do everything we can, but, you may need a full brake job and that's going to be expensive. I just wanted you to know that, before we started," he said.

There were more assurances that they would do the full brake job only if necessary. When the call was over, the harried owner walked to the door that led to the bay area. He open the door and called out: "Full brake job on the Smith car."

When he turned back to the customers waiting for service, he realized that we had been witnesses to everything that had been said. For a moment, he turned beet-red. There was a frozen moment of time. Then he smiled, a warm genuine smile.

"Ten percent off if any of you got wet coming here today."

Some people laughed. It was just like something he'd say on his radio spots. A few were ready to forgive, ready for a discount, others not so sure.

You can't underestimate the power of personality in the sales process. The owner was a very charming man. And he was very successful - at that time. You can drive sales with a single, bright personality, but that's a very weak, very risky strategic decision. Today, his business is still there, much smaller, and he's no longer on the radio. You don't hear much about his business either. I wonder what happened?

Small Business Pricing for Products or Service

2007-12-19T09:10:00.003-06:00

Forget Complex Mathematical Models - Price on Pain

Many, many books have been written on determining a price for a product or service for a small business. These writings fulfill a certain hope, or rather, desire that all the answers in business can be found in a calculator. In a safe, easy world that would be true. However, in my career, I haven't found that to be the case. I've seen companies over-charge and succeed and under-price and fail.

Even more confusing, there are legions of examples of similarly priced products going head to head. These evenly-matched products offered the same specifications, dimensions, quality, delivery specs and, you guessed it, price. Yet, time after time, one product would succeed where the competitor would fail.

I am always surprised how often companies can forget the basic foundation of marketing and sales: No one buys a product or service - the customer buys the end result that the product or service provides. I like to use the term pain as a stand in for the traditional marketing terms "wants and needs", because I think it more aptly fits a pricing model. The greater the "pain" the higher the price. The more acute the perceived distress of not having your product-remedy, the higher price premium it can fetch.

Marketers teach small business to pitch a product or service based on customer benefits. That's true as far as it goes. But for pricing, however, a clear understanding of the amount of "pain" the customer experiences without your product provides the grounding for your price point. To set the price for a product, establish the severity of the customer's pain. You always sell against "pain". Your small business product is the 24-hour pain reliever.

In-Flight Internet Service for Small Business Travelers

2007-12-17T15:18:00.002-06:00

Small Business Travel

Air travel can strain productivity in small business - flight delays, fatigue, and time away from the office combat the traveler's efficiency. In an effort to improve service to business travelers, major airlines will be offering in-flight Internet service starting next year. Jet Blue will be the first with limited service for e-mails, but will be followed quickly by broadband service by air carriers such as American Airlines and Virgin America.

This is one of the few bright spots for small business travellers in 2008. Rising numbers of flight delays combined with reduced flights are making air travel a particularly unpleasant chore. Aside from the time required for travel and security checks, there's the added frustration of reduced effectiveness during the entire length of the business journey.

Expect to pay for this enhanced service. Most projections estimate a $10 charge to get online during a flight. For most business folks, however, it will seem a small price to pay for improved productivity and reduced travel frustrations. Now, if they could just do something about having the flight arrive on time. Small business travel is getting better.

Online Customer Reviews Can Affect Small Business Future

2007-12-17T10:16:00.004-06:00

Market Research: Customer Reviews Become Confrontational at Amazon

Amazon, along with many other online retailers, allow their customers to provide comments on products in postings that follow their own product descriptions. At it's best, this forum provides honest feedback from customers and help strengthen the brand. The online reviews from product users allow potential customers to see "impartial" evaluations from people like themselves that may provide a more complete view of the product's strengths and weaknesses. At it's worst, however, online reviews are highly susceptible to manipulation from any of the participants.

For a new product on the marketplace, positive reviews can quickly build trust with new customers and speed adoption into the marketplace. These reviews are so valuable, however, it is tempting for the product manufacturer to enlist friends and associates to "seed" these comments with glowing evaluations.

Recently, a friend recommended the book, The Four Hour Work Week by Timmothy Ferriss. I went to Amazon to review details about the book and read some of the product reviews provided by customers. Some were very favorable, others challenged the authenticity of the posts. One enterprising reviewer researched one favorable critique and traced the comments back to a friend of the author. He came back and began a forceful assault on all the positive comments calling them all suspect. It was a great point, it made me doubt, not only the Ferriss book reviews, but all the reviews at Amazon.

But it didn't stop there. Another feature of the public comment section of Amazon is a product forum for each book. I clicked on the forum and saw that many of the back and forth accusations and responses regarding review authenticity had continued into the forum, much like a barroom brawl in a western movie spilling out into the street.

I don't know if the author of the book had any part in manipulating reviews. Whatever the case, however, any sales aid that the customer evaluations may have provided the book have been destroyed by the posting brouhaha.

Product reviews are empowering to the customer, but as the customer's power increases, however, so does their potential to support or hurt the product. In all of this free drama provided by Amazon customer reviews, I remain uncertain about the book itself. It may be a great book, but its reputation is sullied thanks to a few misguided reviews on Amazon.

Update: Since this posting, many companies have started to delay postings until a human can review the comments. Although this might stop heated exchanges, it can little to stop "seeded" comments.

Don't Let the Brand Take Over the Small Business

2007-12-14T08:57:00.003-06:00

Do Strong Brands Turn Small Business into a Comodity?

Small businesses concerned about finding a place on Google search engines should know one thing - searchers don't care about your company - they search for your trademark or product name. Consumers want X Box - not the company. Consumer don't go generic in searches. Year after year, the top searches on Google are for brand names and trademarks. This awareness is critical in a developing a marketing communications strategy.

For small business, the best of both worlds is to have your trademark and company name be the same. For limited budgets, it's difficult to promote both a company name and a brand name. The larger companies have the resources to have multiple brands and still have a well-known company behind them.

No matter what the size of your company, all product names should be developed with an Internet search in mind, that's how consumers will shop on the Web for your product. They want X Box or some other brand name, they simply don't care what company makes it.

Small Business in Competition with Pamela Anderson

2007-12-13T08:45:00.003-06:00

SEO Marketing: The Internet Was Made for Pamela Anderson - Not Main Street

About 70% of Internet content is posted by individuals, creating an interesting quandary for business today. As more and more of the economy becomes web based, there is a rising challenge for business to be discovered on the Internet. Pamela Anderson does not have that challenge. In reviewing the most popular Web searches, she is always near the top. So is Will Smith, Paris Hilton, and the news story of the day.

The fact remains that Consumers typically use the Internet to search for Pamela Anderson, not small business resources or alternate suppliers. Consumers may find products on the web, but that is not where they spend most of their web-time. Online users are on the web for entertainment.

Individual Internet marketers understand how to use this populist Web. I'm not so sure about big business. Small business owners obsess about how they can manipulate search engine rankings to their advantage. Too many large businesses wait for the customer to come to them on the Internet, rather than finding them through blogs, podcasts and "shadow" sites.

Finding customers is always the main component in business success. And keeping a top position in Google should always be at the forefront of business planning. It's one of the few things that Wall Street and Pamela Anderson should have in common.

Marketing Communications: The Politics of Selecting an Ad Agency

2007-12-12T16:02:00.001-06:00

Marketing Communications: The Rough and Tumble of Choosing an Ad Agency

I think I've been through the ad agency selection process about 15 different times with various companies that I've been associated with over the years. It is a process unique to marketing communications that is unlike any other vendor selection procedure that I've ever seen. Ad agencies gain or lose, sink or swim, through relationships built within an organization. I think this is because agency work is built on creative and message strategies, two ephemeral products which can only be subjectively rated in advance or more accurately judged by sales and awareness measurements only after the ad agency has been hired.

I've seen high-power executives shrink from the selection process, because they know they are not equipped or trained to judge the creative or strategic merits of an ad agency. In the end, (and I've seen this on too many occasions) ad agencies are selected based on likability and perceived trust.

Ad agencies are adept players in this process, and have the advantage over clients that may attempt to select a new agency every blue moon or so. Agency people fill the room with personality and tiny-font creative, and I've seen executives be swayed by perfume ads when they are selling nuts and bolts.

In the many weeks that an ad agency search requires, there are many lunches, friendly calls to client board members, and recommendations from friends of friends to company execs. Visions of the future (more sizzle than steak) become real through repeated tellings to all concerned.

Selecting an ad agency is always an interesting process in which the client is never fully in control. Meanwhile, other vendors like printers and computer suppliers limp along, competing on price and delivery times. Who said that business was fair? It certainly wasn't an ad agency.

Small Business Frets Over Office Depot Deals

2007-12-12T10:22:00.002-06:00

Making a Run to Office Depot

Every small business that I work with is a customer of Office Depot. Invariably, however, it is these same small businesses that complain about how the big box retailers are forcing many local businesses to close. I don't know if they see the paradox, but I'm sure some must. And it's not that I don't understand the problem, I do. Small shops have to survive on impossibly tight margins, and paper for their printer is a commodity. But still, it is a difficult compromise to support small businesses which refuse to support themselves.

What does the future hold for small business? They can offer better service and more expertise than the minimum wage workers at a large chain, but in the final analysis, how much value will the customer see in that advantage. Can you put a price tag on that intangible?

I know of one local auto parts store that serviced a small town for generations. Fathers passed the small business down to children for a least three generation. Of course, that also meant that three generations of customers had built a relationship with that store. They were well known and trusted. They were experts on installation and sometimes would help you put the part in your car as an added value service - A truly Norman Rockwell kind of experience.

But when a big box retailer of car parts opened within easy driving distance of the town was announced, the store closed. Actually, they gave up without a fight. They shut down before the big retailer had actually opened their doors. I'm sure after three generations, this family knew their customers. It was their belief that service and tradition were less important than price to their long-time clients. Maybe they were right. I do have to wonder though, before the big box retailer had arrived, did they get paper for their copier from Office Depot? For them, and many small businesses, deals from Office Depot and other large retailers can carry a high price.

Pricing Lessons from Hannah Montana Tickets

2007-12-11T11:24:00.001-06:00

Success Leads to Pricing and Product Extension Woes

Small Business Note: The Disney Corporation is currently basking in the success of the Hannah Montana and High School Musical franchises. But even large scale success creates the same sort of pricing and product extension problems that small businesses face everyday.

In the nationwide Hannah Montana tour - Best of Both Worlds - tickets to the teen diva show were scooped up by scalpers and resold to desperate moms at two to three times face value. In effect, Disney family-friendly pricing allowed much of the show's profits to go to unsavory middle-men. But if the company had chosen to price tickets at a higher margin, fall-out from angry parents might have caused significant backlash. I'm sure the implications of this corporate decision are currently under review in hopes to discover a new alternative pricing method for the next teen diva.

As for High School Musical, a stage show is currently making the rounds. I haven't seen the box office results, but the show itself is dismal. My seven year old daughter, a high school musical loyalist, complained that the show featured only "adults" in cast parts. It was not the High School Musical she loved and watched repeatedly. Poorly executed product extensions will only weaken the original product.

The Disney company is an excellent marketing organization and I know they constantly weigh the costs and benefits of their decisions. Hannah Montana and High School Musical may be two gravy trains, but that doesn't mean that the product marketing road will always be smooth. They can ask small business about that.

The Value of a Small Business Blog

2007-12-06T11:22:00.002-06:00

What Can a Blog Do For My Small Business?

As a small business owner, you find yourself torn by the demands of a multitude of duties: salesperson, purchasing agent, facilities manager, personnel director, well, the list is endless. But at the end of the day, the most important key to your success is your relationship with your customers.

In this age of standarization, the critical differences between you and your competitors is always going to be you. You are the "added value" that keeps your customers returning. As the business owner, you know more about your product and its applications than any of your junior associates. Think about this for a moment; when you work with a small business, do you prefer to work with the owner or the new guy or gal who is still learning the ropes?

Time after time, surveys indicate that people are increasingly turning to blogs to discover new product information and make purchasing decisions. Your own business blog is an opportunity to get out of the stock room, the HR department, or away from whatever is demanding your attention and speak directly to your customers. A blog gives your clients 24/7 access to your skills and knowledge. It also provides an opportunity to "upsell" on new products and services. All of this is available for the cost of a few pixels. A blog allows you to provide your customers that "added value" that can only come from you.

Why not do a search for small business blogs in your product area? How do they make you feel about these businesses? A well-written blog puts a personality to a business name and can begin to build a trusting relationship - all before the customer walks into the door.

Small Business: Make Money Online With Amazon

2007-11-22T18:56:00.000-06:00

Small Business Marketing: Make Money Online

If you're like me, when you purchase books online from Amazon, your eye is drawn to the message that appears near the new book price."Buy this book used for $2.97 and up." That's a pretty competitive bid considering the substantial list price for most new books. I can't remember when I've actually purchased a new book, the used copies that Amazon affiliated booksellers offer are cheap, reliable, and many times I can't see any wear on my (new) used book. If you've wondered about the booksellers behind these incredible used book offers, they form a legion of small businesses who are making money online, finding a niche in virtual book selling.

The Pub Hub, owned by Rupert and Marnie Robertson, is one of those many Amazon used books sellers.They have no storefront and no Web site, but these early retirees stay busy with an online business based in their home in the Ozark mountains.

I asked Rupert Robertson about how they got involved with Amazon, "My wife and I are both avid readers and garage sale enthusiasts. Because of this combination, our house usually looks like a library in disarray. A little over a year ago, we decided to combine both our avocations into a small business, an on-line bookstore. We decided to go with Amazon.com for a couple of reasons. We bought from their stores on a regular basis, so we were familiar with them, and they make it easy to get started. Amazon's on-line instructions were easy to follow and, when you open a merchant account, they give a discount for the first two months. We started listing some of the books we had around the house and immediately ran into puzzler. Many of the books that we had were already listed for a penny. There we were, looking at a book that retailed for $24.95 and there were 150 of them out there for a penny. Even with postage, someone was losing money. It didn't take us long to decide to put limits on the books that we would list, including price, condition, overseas shipping and weight. These parameters helped cut down on storage needs as well as boost profits. We now concentrate on unusual or esoteric books and customer service."

According to Robertson, these booksellers live or die by their customer ratings. Many Amazon used book sellers purposely under-rate the condition of their books, attempting to head off any customer dissatisfaction that could result in a low customer rating. In other words, books in "excellent" condition are often described as being in "very good" or "average" shape. In this consumer-driven marketplace it is the seller, not the buyer, who must be wary.

Where does he find his books? "Rather than try to cherry pick each garage sale we wander into, we usually try to buy the entire display for a low price. We don't waste a lot of time dickering. We make an offer and, if it is accepted, we load the van and move on," Robertson said. All of this results in plenty of work for a couple in retirement, "We average about 30 hours a week for what one would call a supplemental income. But, the upfront costs were minimal and we enjoy looking for book bargains. We monitor our expenses carefully to ensure that this part-time business stays profitable," Robertson said.

According to Robertson, Amazon offers a streamline sign-up process that doesn't require a large investment of capital, making it a perfect part-time business for retirees. In the first nine and a half months, the Robertsons have spent $2,164.00 on gas, inventory costs were $3,710.67, postage ran $2,847.54 and general supplies cost $753.86.

This and other new ways to make money by online marketing are changing the nature of small business. Rupert and Marnie Robertson's Pub Hub is one of the many non-traditional drivers of the American business landscape.

Basic Marketing: Pricing

2007-11-09T12:55:00.000-06:00

Do Free Products Have a Long Tail?

Ever since the publication of the book "The Long Tail" traditional pricing models typically used by retailers have been under siege. Yes, the book simply identified a transition that was already underway, but it sped that process by highlighting the concept and predicting (accurately) the wide-spread ramifications of this new business reality.

As massive as the revolution in retail pricing that was made possible by the new digital age, an even broader reevaluation of products and pricing is underway that may make many companies change the very nature of their business.

For example, I have a friend with a successful video and film production company. For over 30 years they have been producing TV spots for advertising agencies across the southern United States. They have also been attempting to enter original sports programming, and to date, have produced an outdoor sports program that is broadcast on a national cable company. They want to build on this success, and have not yet been able to do so.

In a meeting with the owner I learned that they have developed a web site to support the show and receive a sizable number of visitors every month. The purpose of the site is to deliver an episode guide and information about showtimes in markets across the United States.

The limited scope of the site is framed by how they view themselves as a company. They see themselves as a production company, they would like someone to buy their services so they can do what they identify with - develop programming. No long tail here, just a short one.

I tried to suggest to them that they have a tremendously valuable web site. Their show creates thousands of visitors each month. This powerful asset would be the envy of many companies. Perhaps in this new digital world there are no more film production companies, only content producers. If this film company viewed itself as a content producer, they might find ways to monetize their product in new and innovative ways. Lift segments of shows for fishing tips, behind the scenes videos or programming culled from unused footage. The company's web site is already on-the-air. They do have an offer to create new programming, it's just not from a sponsor, it's from the public.

The company web site is an advertising bonanza for a content producer, but for a film production company it's only an unpaid showcase.

Fast Company's Garage Inventor

2007-11-02T15:33:00.000-05:00

Johnathan Goodwin - The 100 MPG Mechanic

I don't know how many times I've read that the days of the garage inventor are gone. A sole genius like Thomas Edison could not exist in today's world of high technology and start-up capital. The innovations of tomorrow will come from corporate labs with out-sized research budgets. No more lone-wolf tinkerers changing the world, let's leave that to the research teams working to meet carefully developed objectives.

If you believe that the days of the solitary genius are gone, then avoid this month's issue of Fast Company. In a cover story titled, "Motorhead Messiah" the magazine profiles a mechanic who may be the most important man in the automobile industry since Henry Ford.

In a way, it reads like a Hollywood movie. A high school dropout mechanic in Kansas, who has an overpowering love for big cars, has developed a new way to turn biodiesel and electric motors into a highly efficient, highly powerful power plants for vehicles as big as Hummers. Perhaps most amazingly, Johnathan Goodwin, the farm grown genius behind all of this, didn't invent a magic "black box" that made all of this possible, he used off-the-shelf parts and engines. His creativity was centered on finding new ways to use existing parts to create something entirely new.

As a result of all this, he's taken a '65 Impala, inserted one of his biodiesel engines, and now has a car with 850 horsepower and 1,200 foot pounds of torque, all while getting great gas mileage.

I wish this was a feel-good story, but the article also includes the bored response from Detroit. It seems American car makers will only listen when Japan gets involved. Hopefully, that will happen quickly.

One final note, for my two cents, Fast Company magazine continues to have the most consistent, and most interesting business writing today.

Small Business Credit Crunch

2007-10-25T15:06:00.000-05:00

Small Business Experiences Slow Payments

The economy is heading toward recession and small business often feels it first. According to a recent survey (September) of small business owners by Discover Card, economic confidence is falling among small business owners. About half (46 percent) of all small business owners have experienced cash flow delays in the past 90 days. Many of these small business owners (about one-third) must extend credit to their customers so this could become a significant problem over time.

The survey is sent to approximately 1,000 small business owners and has a 95 percent confidence level.

Basic Marketing - Choosing an Ad Agency

2007-10-24T11:07:00.000-05:00

Weighing Strategy Versus Creative in Basic Marketing

In baseball, there is the old adage that good pitching beats good hitting. This means that on any given day in the ballpark, a great pitching staff will win more games than a lineup of hitters. Yet, if we recall the history of baseball, most of us will think about players like Babe Ruth, Hank Aaron, or some of the asterisk home run kings of today. Sandy Koufax, Bob Gibson and Dizzy Dean don't usually head the list. It seems we are genetically pre-determined to focus our attention on the long ball hitters rather than the players that actually win the game.

It's the same way in selecting an ad agency. Large and small companies seem to prefer "break-through" creative rather than swooning over the thought process that develops a brand position or a product differentiation insight. Yet, the advertising landscape is littered with the memorable remains of "great" creative that failed to sell product. And isn't sales the bottom line of any advertising campaign?

Advertising creative is the four-bagger of the agency pitch. Both sides may talk about the importance of strategic thinking and results-based marketing, but creative is what the client remembers. Friends, neighbors and family never comment on a well constructed business strategy, but they will smile, pat you on the back, and tell you how much they like your advertising.

It takes a disciplined approach to business to review a series of agency pitches and focus on the business thinking behind the pitch and not make the creative the decision maker. But, in the end, strategic thinking beats creative home runs. Think of it this way, when a pitcher wins a no-hitter, it's usually a very quiet day in the stands. Until the last inning that is, that's when the pitcher gets the standing ovation for winning the game.

Small Business: Working with the SBA

2007-10-17T10:39:00.001-05:00

Grow Your Business

If you are a small business involved with the business to business marketplace, you’ve probably thought about seeking a government contract or becoming an approved vendor for a large, national company like Fed Ex or HP. It’s a daunting task under the best of circumstances, but there is an easy way to at least have the opportunity to make your pitch, it’s called the Business Matchmaking service sponsored by SCORE, a resource partner of the Small Business Administration.

Business “matchmaking” opportunities are conducted at regional events or online. SCORE and the Small Business Administration will walk you through all the paperwork necessary to be approved to make “pitches” to purchasing agents representing governmental agencies and major corporations. After successful completion, you can make appointments to meet directly with these hard-to-find decision makers.

This is a free service of the SBA – so why not take advantage of this opportunity to take your business to the next level by adding major players to your customer base. The Business Matchmaking web site provides details about what business categories have the most success breaking into this market. You must also be prepared to provide references from other customers and have an organization of at least 10 people.

More information is available at http://www.businessmatchmaking.com/

Small Business Fears Online Marketing

2007-10-16T11:33:00.001-05:00

Will the Web become a basic marketing component for small business?

Although the Web may be a large part of the marketing mix of large corporations, it is slow to find a home in small business marketing according to a recent report from Opus Research. The major objections from small business owners included time, budget, and manpower. The online survey drew nearly 1,200 responses from across the globe.

According to the results:

25 percent believed online advertising was too expensive

20 percent thought that internet marketing was too difficult

18 percent thought the internet didn’t work for their business

On the positive side, most small business owners believed that some online presence, even a static Web page was necessary for any business. Also, many owners thought that local business review sites had a positive impact on their business.

More information can be found at Clickz.com at: http://www.clickz.com/3627286/print

Basic Marketing: Product Packaging

2007-10-15T09:02:00.001-05:00

Sometimes the Package is More Important Than the Product for Small Business

Product packaging is often given little attention by small business in the rush to get a new product to market. Product development takes so much time, effort and money that the packaging is only developed as the final, hurried step before the product hits store shelves. What many companies don't realize is that people make decisions based as much on package design as product performance. For a new product, this may be the main factor in the buying decision.

As an example, go to a local "dollar" store and look at the second tier, unknown brand products. You'll find that the labels seem almost generic in design, with washed out colors and bad layouts. Yes, these products are targeting bargain shoppers who are focused on price, but if more thought was given to design, a wider market could be available. These second tier package designs suggest both low price and low quality.

Most small business owners tend to pick packaging artwork that is attractive to him or her. I worked with one company that was targeting young females, with an executive staff comprised of middle age women. Invariably, they picked a design that was popular when they were young, and were surprised when the product performed poorly in the marketplace.

How to Design Packaging

There is only one rule here: ask the customer. A focus group with your target audience will give you a better understanding of their emotional reaction to your package and your message. Even if you market online, it's beneficial to see your customer's reactions face to face. Now, remember, your customers will not have rational reasons for their preferences, they will "like" a design or "not like" a design based on criteria that they probably can't express.

Focus Group Questions

Bring several different design options (even those you dislike) and display them all together and ask your group these questions:

Which product looks better made? (Remember, they are only seeing the packaging, not the product.)

Which product looks more expensive?

Which packaging has the most attractive colors?

Which product looks like it is of very poor quality?

Which product looks like a bargain?

Which product would you be most likely to try-out?

The answers from these questions give you an idea of the consumer's emotional reaction to each package design. You don't care which package looks the best, you want to know which package design will most likely influence a purchasing decision. This is also an interesting experiment for a small business owner to conduct with existing products.

Basic Marketing - Mystery Shoppers

2007-10-14T13:21:00.000-05:00

See Your Business Like A Customer

One of the most basic marketing research activities is to monitor customer interactions with your company. One of the oldest, and perhaps, the most insightful technique in this arena is to use mystery shoppers to evaluate how effectively your employess work with customers when you are not present. It seems easy enough, just hire someone to come into your store, pretend to be a customer, and report back to you on the quality of that experience. If it were that easy, mystery shopping would be used far more than it is today. Most of the time, however, mystery shoppers provide unactionable reports, using undefined performance measurements which give no direction and result in an alienated workforce who believes that the boss is "spying" on them.

With all the possible hazards that mystery shopping can bring, it is still the best way to understand how your staff performs in your absence. I know of one manufactured home dealer whose mystery shopper discovered that a sales staff member was directing customers to the lot to tour the units on their own. Telling the customer to, "let me know if you have any questions". This was a critical failure that probably resulted in many lost sales that cost the owner thousands of dollars. This problem could have persisted for many months until an accidental revelation informed the owner of this critical failure in performance. A timely discovery by a mystery shopper, however, helped save the business from an unprofitable year.

Follow these guidelines and you can reap the benefits and avoid the pitfalls of mystery shopping

Define Your Goals

What do you want to know and what measurements will you use? What customer service techniques have you taught your staff? Greet the customer within 30 seconds? Use the customer's first or last name? Always give them a brochure? You probably train your employees to execute a dozen or more activities with your customers, and you should always measure against what they have been trained to do, not what you might have done. As the owner, you have complete freedom to choose novel ways to work with customers, your employees do not. You should never criticize employees who are working with customers according to rules that you gave them. You can use the mystery shopper reports to improve or expand training - without telling them they have been performing poorly. There will be many problems in customer service that are the result of poor training - it's not the fault of your employees if your training didn't cover a newly discovered shortfall.

2. Let Everyone Know - No Secrets

Alert your employees at hiring and once a year thereafter, that you use mystery shopping to find ways to improve the business - not to spy on individual employees. No one should be surprised that a mystery shopping event has occurred. This will lessen any feelings of a "big brother" watching over them.

3. Pick a Mystery Shopper Who Knows the Business

The best mystery shoppers are people who have experience in your field. They can see things that someone who is a complete novice can not see. Additionally, when they spot a problem, they have the background to suggest solutions - you get more value from this type of report.

4. Reward Your Employees

A mystery shopping experience usually discovers much more that is right than is wrong. There will be some things you will want to correct, but much more that you will want to reward. Turn your mystery shopping research positive and reward employees for doing things right, and add training to improve performance shortfalls. Positive motivation is always the best choice in assuring that your staff remains committed to the success of your business. Only after repeated failures in two or more separate mystery shopping research experiences should you meet with a disappointing employee, privately, to discuss a shortfall in performance and take any necessary action.

5. Create or Approve the Final Report in Advance

Go over the form that the mystery shopper will be using with the mystery shopper in advance. You both have to understand and agree on how each category will be monitored and graded. Don't wait until the report is in your hand before you try to interpret it. Complete understanding of how everything will be measured helps assure an actionable report that you can use to improve your business.

Mystery shoppers can provide a keen insight into how your customers see your business and understanding your customers is the most basic marketing tool at our disposal.

Marketing to Women

2007-10-09T09:13:00.000-05:00

Marketing Tip: Keeping Track of the Female Customer

It's no secret that women shop far more than men. Women drive the consumer economy. However, women pose a challenge for anyone who markets online or through a catalog. Most small business marketers track the purchase history of customers so that they can make targeted offers to their best customers. But to do this, they must track individual customer purchases over time. This is where women pose a significant challenge.

Women Often Change Their First Name When Married

The majority of women still take on their husband's last name when they get married, they also change addresses. At this point, their purchase history can be lost as purchases under a maiden name can look like an inactive customer, rather than a customer who just got married. Adding to the problem, women frequently use a new marriage to alter their first name. For example, Elizabeth now is known as Beth. According to some list brokers, approximately 15% of all women who change their last name when married will also alter their first name as well.

It's an important component in small business marketing to expect that a new marriage will result in both a new first and last name for an old, valued customer.

Basic Marketing: Real Live Customer Service

2007-10-08T07:22:00.001-05:00

The 800 Number and Small Business

Perhaps one of the most important customer service advantages that a small business enjoys compared to large corporations is the ability of the customer to call the company and actually talk to a person. Big companies have dropped any pretense of wanting to actually talk to their customers and have created an intricate system of Internet forms and VRUs to funnel the customer into cost efficient "interactions".

Customers, of course, hate this method. It is time intensive for the customer and provides little or no closure to the problem. Will someone respond to my complaint or question? Only time will tell.

A website called http://www.gethuman.com/ comes to the customer's aid, providing tips and techniques to avoid the endless computer prompts and actually talk to a person. The site offers the 800 number for a myriad of large national corporations and provides secret techniques for circumventing the automation and talking to an actually human being. One of the most common techniques seems to be hitting "O" and "#" in rapid sequence. Also, sometimes saying the word "agent" will allow you to bypass the electronic dungeon. Check the website for complete instructions.

Of course, customers can try the small business alternative of these behemoths, they know that there's somebody at the other end of the line to talk to. Even in online marketing, it's the owner who's responding to the email, not an employee. Isn't one to one marketing the key advantage of small business marketing.

New McKinsey Study Surveys Global Online Marketing Growth

2007-10-04T15:54:00.001-05:00

Marketing Execs Point to an Online Future

In a global survey of 410 marketing executives conducted by the McKinsey consultant group found universal agreement that online marketing would increase by 2010. For those of us in small business who thought that online marketing already had conquered the marketing world, the modest results are a little surprising. By 2010, these execs expect to see 10% of their revenue come from online sales compared to about 5% today.

European companies are slightly ahead of their American counterparts in using online marketing tools, although high speed Internet development in Europe lags behind the access level in the United States.

Additionally, 15% or respondents said they are already experimenting with selling products in virtual worlds. More familiar emarketing techniques such as emails, display ads, and paid key word advertising are still the dominant online marketing tools.

One unexpected finding reported by McKinsey was that the importance of online advertising in brand building was seen as just as important as sales. Many of these respondents are using blogs to test new product ideas among potential customers.

The increasing use of blogs is one trend that will be interesting to watch in the future of small business marketing. More information is available at the McKinsey web site.

Small Business: Build Your Brand and Deal With Your Emotions

2007-09-27T13:14:00.001-05:00

A Strong Brand has a Soft Center

It was the buzzword of the ‘90’s in American business publications, but Branding is just as important today in maintaining profit margins and safeguarding customer loyalty. Most small businesses, however, still struggle with brand building because a primary driver of a strong brand are the emotional bonds with a customer.

Small businesses are especially reluctant to deal with the emotional component of their brand. “I sell a quality product and provide excellent service to my customers,” a small business owner often says. But, guess what? Companies with lousy products and inferior service are not your competition. A business owner needs to be concerned with competitors who can match you on product quality and service levels. In that kind of environment, you both have to compete on price alone – and nobody wins that battle.

Certainly, product quality and service are building blocks for any brand. The strongest brands, however, have powerful emotional links to their clientele that are very difficult for a competitor to match.

If you’ve been in business for a while, it will pay you to identify your strongest emotional connections with your customer base. How difficult would it be for a competitor to duplicate these emotional connections? Some common emotional ties are:

Friendships: Do your customers have relationships with you or your salespeople? Who is the “owner” of these important relationships that are driving your sales? Could a competitor hire away long-term employees (and their relationships) away?

Tradition: Let’s say you’ve been in business for 35 years and you believe that your history in the community earns you sales every day. What aspects of your long tenure keep customers coming back? Is it loyalty or inertia? What aspects of your experience do your customers’ value? They may surprise you when they tell you the real reasons for their repeat business. A new competitor can’t duplicate your longevity, but they may be able to satisfy the value points of your company’s long tenure that diminishes the strength of your long tradition in the community. The most important thing to remember: history is a series of facts, tradition is the interpretation of history.

Knowledge: As a small business owner, you know your product and customers very well. This added value is difficult to match unless a competitor arrives with newer ideas and better insight. What value will your customers place on a fresh outlook? Are you continuing to grow your own skills and your willingness to try new ideas?

Understand Your Customers and Your Brand

There are many more aspects of your emotional connection with customers. These emotional bonds are difficult for many business owners to address because they are so difficult to measure. It’s important, however, for the maintenance of your brand to identify all your ties to your customer and make those emotional connections defensible if, and when, a new competitor shows up. If you don’t value these emotional connections, your small business competitor surely will.

Small Business, but Think Big

2007-09-25T15:52:00.000-05:00

Competition from Web Steals Your Business - Fight Back

If you're like most small business owners, you began your business because you like the independence it provides and wanted to provide a service to your community. A great many small businessmen don't want to grow their business, they like staying small. But the globalization of the marketplace is stealing away, in bits and pieces, the market of traditional small business.

Small Business Can't Hide From Globalization

In recent posts, I've written about how the Web is competing with many small businesses:

Local Travel Agencies - HotelReservations.com, many others
Local Book Stores - Amazon, and affiliated used book sellers on their site
Local Clothing Store - Too many to list
Local Printers - Web based business cards, banners, signs, and postcards printers, etc.

Yes, most small businesses have a static web site with hours of operation, phone numbers and some pretty photos. That's not enough. Everything a small business does should create a stream of revenue.

This isn't breaking news. But most small businesses don't go the extra step of creating a retail web component of their own shop. An additional web capability for small business should be a requirement for all business owners. At the very least, what kind of added value services can you develop for your local customer base (emachine shop, etc.) ?If you recognize that your web presence should generate revenue, you'll find new and creative ways to use the web for your advantage.

For example, companies like Shopatron are giving many small businesses a chance to move their inventory through the Web sites of large manufacturers. Small business will always be with us, but in addition to bricks and mortar they will also have to build a business capability that recognizes the new digital world.

Don't look to the giants of the web for ideas. Search the Internet for small businesses, in your area of commerce, and see how they have monetized their site. It's time to take your fair share of online commerce.

Marketing Tips: Graphic Arts

2007-09-24T08:20:00.000-05:00

Small Business Logo Design

One significant problem for small business is acquiring graphic arts support on a limited basis. A small business doesn't generate enough business to interest an ad agency, and independent graphic artists can be quite expensive. Also, revisions (after delivery of the first graphic options) can be an additional expense.

An internet business(http://www.logocare.com/ ) seeks to target this small business market by focusing on a sub-category of graphic arts - logo design. Logo Care offers logo options for $1, with unlimited revisions, until the final artwork is selected. Upon completion, a flat rate charge of $259 is charged.

If your business is located in a smaller market, this could provide you with easy access to big city talent.

http://www.logocare.com/

Finding a Small Business Niche

2007-09-21T12:42:00.000-05:00

Cereality - Breakfast All Day

It is amazing to me how some business ideas seem to hide in plain sight until someone views it a new light. Cereal has been a ubiquitous item on breakfast tables for about a century now, always there, never changing. Until now. A new business has created a whole new way of looking at breakfast cereal - it's called Cereality.

Founders David Roth and Rick Bacher took a very common item and recreated it as a young, hip, fast food cafe. Their stores carry over 30 different types of cereal and about 30 different toppings. Diners can mix cereals and toppings to create their own unique preference. Each "bowl" of cereal is served in a Chinese style food container. At about $4 per "bowl" there's a very comfortable profit margin.

An online service allows distant customers to order their own personal mixes of brand name cereal and toppings. It also allows you to create a personalized back panel. Their web site promotes the $100 minimum orders as novelty gifts for birthday parties and weddings.

As the company Website says, "Ninety-five percent of people like cereal. Fifty-seven percent like sex. We have cereal." Just think, the next great business idea could be sitting right in front of you.
http://www.cereality.com/

Marketing Tips: Public Relations

2007-09-18T18:37:00.000-05:00

I am fortunate to able to teach a class in public relations at a local university. On the first night of class, I ask the students to explain the purpose of public relations. Invariably, they respond that the goal of PR is to improve the image of the company in the community or some similar rationale. I startle them when I tell them that a good image with the public is not the goal of public relations, the goal of public realtions is to make money.

If public relations did not add to the profitability of an organization, no company would bother. That's why many small businesses struggle with public relations decisions. Should we sponsor a bike race? Support the United Way?

Any public relations activity must relate to the core business function of a small business. A small business can be a good corporate citizen, but it also must be profitable. The two objectives are not exclusive of each other.

Cause related marketing, which began in the early '80's, clearly demonstrated that good works can be tied to sales. A small business must become very savy about how to connect a cause to their bottom line. Every public relations decision is a marketing decision. With limited marketing dollars, a small business should be thinking about how PR can enhance the market position of their company.

The Voter As Consumer

2007-09-18T12:31:00.000-05:00

The Store Shelf and the Voting Booth

In a basic sense, the a voter and a consumer behave in the same way. Numerous studies have confirmed that a consumer's buying decision can become very irrational when the choice becomes too complex or product features become too extensive. The 2008 Presidential election promises to be very challenging since there seems to be more critical issues to weight when voters make a product (er, candidate) selection.

You may like Edwards on health care, but disagree with his viewpoint on the war. And what about his views on abortion? How do you resolve this with your vote?

You may like Fred Thomson for family values, but want us out of Iraq now. And wasn't he an abortion lobbyist? What do your family values really mean? How will your vote reflect them?

Issues are much like product features, and this year the issues are complex and many. Health care, war, the economy, abortion, and a host of other problems divide the nation. It will be difficult, if not impossible, to find someone who completely represents your views on all issues?

Consumers faced with a difficult choice generally resolve their uncertainty based on price or brand awareness. Faced with too complex a decision, consumers quickly abandon weighing options that they can not easily resolve.

It may be that way in this election. The voting booth is similar to a store shelf, voters will hate any decision that leaves them frustrated and confused. In the end, like most consumers, voters will cast their vote based on brand strength, and nothing else. Too bad we can't vote based on the price that we'll have to pay for the next four years.

Discount Click

2007-09-05T08:37:00.000-05:00

Discount Click - A Great Option for Bloggers

Like a lot of bloggers, my background is in writing and communications - not SEO optimization. As I look at my Sitemeter hits they rise and fall in seemingly mystical fashion. I recently got serious about raising my readership levels by hooking up with a professional SEO organization. It's easy to find SEO companies, but finding a company that provides realistic growth projections at an affordable price is darn near impossible. That's when I found Discount Click, http://www.discountclick.com/. What a pleasant surprise!

Discount Click, http://www.discountclick.com/ , offers the full range of services that I was looking for: search engine promotion, keyword ranking reports, and tools that I can use to track my blog's performance and finally understand where my readers are coming from and tracking measures to monitor my blog's growth. The best part, for me, was the affordability. DiscountClick services begin at around $50 per month - just in my price range.

I was pleasantly surprised by their realistic approach to SEO services. DiscountClick, http://www.discountclick.com/ doesn't over promise on potential results, they refuse to make the wild claims of other SEO companies and that earned my trust.

To be complete, they offer a lot of other services that I'm not in the market for, such as ad services, but I'm not as big as the major blogs.

Helium

2007-07-26T15:42:00.001-05:00

Making money online - The Smallest of Small Business

Online Writing

Helium has a very clever marketing ploy – invite writers to create articles on selected topics and then have the readership (the writers) rank the quality of the writing. Those articles that are ranked the highest (1 out of 35 articles, for example) are then “published” on the site.

The clever twist on the idea is that the writers are both readers and visitors to the site, generating traffic and ad revenue. Helium takes the money from online advertising and promises a share of the loot to the contributing writers. It’s a very clever loop - free content and self-generated Web traffic – an effective one-two punch.

The shared revenue with the writers is counted in pennies, but the writers don’t seem to mind. Their reward is seeing their article in print…pixels. Helium is similar to other web sites that use free content provided by users to drive revenue.

http://www.helium.com/