Start a Marketing Program
Start a Marketing Program
by John Fawcett
http://www.tritec.com
What if you were sitting in traffic and the car in front of you
suddenly started to backup. You would more than likely honk your horn.
Simply stated that's marketing and advertising. You want that person to
know that you’re behind them. To sell a product or service you must let
people know about your company. The more your brand and products are
recognized the better the chance for success. Marketing will help
increase the likely hood of completing sales. You are also protecting
your company during a downturn. Sounds really basic but so many
companies never get there.
If you are to run a viable business, part of your business plan must include a budget for marketing.
After the basic tools like business cards and stationery have been acquired
your budget should be about 3% of your total revenues or what you would
like revenues to be if your a startup. If you want one hundred thousand in revenues
you should have a three thousand dollar budget. One million, requires a thirty thousand dollar budget. Sales costs should not be included as part of
a marketing budget.
But a marketing budget doesn't just cover marketing tools it's also about the creation of those tools.
Things like ongoing contributions to website content, getting ready for a home
show or producing new brochures and booklets, writing for blogs and
doing mailings are efforts that can attract new prospects and inform
your current customers about existing and new services.
Marketing allows you to build a broad customer base. If you have been in the
woodworking business for a while you may have seen or heard about the
company that is so busy they can't turn around and you may have also heard
that all of the business is coming from one customer. Maybe the owner(s) realize they are in a precarious position! But if they are not marketing I
would guess they don't. It's important to market even when you are very
busy because a broad customer base equals downturn protection. You can always turn down business but try to find business when
that one or two customers stop ordering. Remember the added benefit of too much business is
that it will allow you to raise prices and improve profitability.
Keep your marketing and sales budget separate but not your marketing and sales efforts.
There's no sense marketing and than not using the tools you've created to help
sales. You may be tired of seeing that same old brochure but it will be
brand new to your prospects. Your sales people should always use the
existing sales tools. If you have boxes of brochures sitting around
they won't do much good gathering dust. If you have a website and it's
not referred to by sales it's a waste of marketing dollars. Brochures,
booklets, websites and other materials used properly will put you miles
ahead of your competition. If you are the owner or sales manager set
procedures for distributing your materials. If your customers are like
me, I keep a messy desk, that brochure that was given to them during a
sales call, may turn up at just the right time and help turn a sale.
Replies to This Discussion
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Permalink Reply by Lloyd Kerry on -
Interesting ideas, John. Any idea of response rates one might expect from sending out brochures, postcards, etc. to target people? I've heard contractors saying they're lucky to get one solid lead from 5000 mailings! But then, that's through a post office to a certain geographical area.
I'm finding potential customers from the internet (e.g., building supply dealers across North America) and limiting my mailings to them, but I'm still getting very few enquiries or follow-ups.
I'd appreciate your thoughts on this type of marketing.
Lloyd
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Permalink Reply by Wesley Bevan on -
Hi Lloyd, The return on investment (ROI) for mass mailing depends on so many things. The list- hot or cold, qualified or not, the piece that is mailed, etc ... The direct response industry say that about 1% response is good. So 1 out of 5000 from a $2000.00 investment might be a $1M house.. Good or bad? The answer is not so simple as do they work or not.
There is a correct method to approach direct mail which creates a higher return rate thus is seems to work better.
I hope this will answer your question but if followed through will mean more things to read and learn...
I would like to hear your thoughts about the topic.
Wesley
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Permalink Reply by Lloyd Kerry on
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Hi, Wesley,
Thanks for your ideas. I'm a little surprised I haven't gotten more response, at least to ask for more information. Many of the building supply dealers that I've talked to all say the same thing- bad weather makes deliveries a hassle, and single-use plastic is expensive. but still almost no one asks for more info. I know there is a recession going on, but if they can save a few hundred bucks on plastic, wouldn't it be worth spending $90 on a trim pouch that can last for years?
I suppose unless the right person in the company sees it, my hard copy mail could be seen as just another piece of junk mail, or my e-mail could be seen as spam. Where possible, I try to find a contact person on the website, instead of just a general inquiry, e.g., address it to john in charge of the warehouse@ business.com.
Of course, I was optimistic when I invested in some magazine advertising last fall. That's a story for another day!
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Permalink Reply by Wesley Bevan on
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Hi Lloyd,
Sometimes new ideas that are Great but too far outside the box have trouble finding a market. What is your copy like? I do study this stuff ( call me crazy but I read the junk mail!) and offer to look at your pieces that you mail and I may be able to give you some suggestions.
DO not follow the guy down the street, do the opposite.
I have some ideas that may be best discussed in a more private setting- email. If that interests you, reply and I will go your website for email access.
Have a great day!
Wesley
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Permalink Reply by Lloyd Kerry on
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Sounds good, Wesley,
Feel free to e-mail me and we'll go from there.
Thanks
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Permalink Reply by John Fawcett on -
Hi Lloyd,
The first problem that needs to be addressed when you are trying to sell a product, as opposed to woodworking (a service) is that product must be branded and merchandized. Here's an example. I have a client who has recently started selling a line of polishing products for chrome, stainless and other metals. This guy is a salesman so he's been taking the product and going around to automotive shops and other outlets with a piece of chome and some polish and giving demos and than asking for the sale. That's all well and good as far as selling goes.
So he asked for my help. I have since designed an interesting label and display with graphics. In addition we have put together an emailing list and are working on branding the product. Now when he goes out to sell he takes along a display, still does the demo but afterwards asks if the customer will purchase a case of product, gives the customer the display and guarantees sales or he will take back all unsold product. When he started the program he gained more customers the first month than he's been able to attract in his first year.
Branding takes longer and that's what the emailing and mailing does. Don't expect great results as far as direct leads but remember your gaining exposure. Here are some ideas to market and sell your product.
1. Ask suppliers if you can set up a table display and talk to customers about your product. A kind of mini show. Give the supplier a cut on anything sold. 2. Start out selling locally/regionally first so you have face time with your potential customers and suppliers. Once you have sales you can ask your customers for testimonials to use for marketing.
3. Also I would recommend you make up a poster or display and ask suppliers if you can post it in there place.
4. Add wholesale products to your web store that compliment your product.
It's hard to do all these things plus make your product too. Your ambitions to go national or even internationally will be difficult until you establish that local market. At Gannomat in the states to market nationally and beyond we do shows, have magazine ads every month , web and email marketing and a full time marketing person (me) to stay ahead of it all.
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Permalink Reply by Lloyd Kerry on
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Thanks for the ideas, John. I've learned a lot of things about marketing and selling these past few months, mostly from folks like you who take the time to help guide us rookies in the right direction.
Products to compliment- great idea. Perhaps bungee cords to hold the pouch in place on the truck (there are loops on the sides of the pouches) and maybe an inexpensive carrying bag, in case someone has to carry the pouch in the back of the truck when not in use.
I like the demo idea as well. I will look into that.
Take care.
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