chapter 30
MARKETING GENIUS
Adrtising a Marketing
Your Business
 
 
 
 
You may know how to build the perfect product or provide excellent service, but do you know how to market your business? If not, all your expertise won’t help keep your business afloat. Without marketing, no one will know your business exists—and if customers don’t know you’re there, you won’t make any sales.
Advertising doesn’t have to mean multimilliondollar TV commercials. There are plenty of ways to market your business that are affordable or even free. All it takes is a little marketing savvy and the dedication to stick with a year-round program that includes a solid mix of proven tactics.
“If you can dream it,
you can do it.”
-WALTER ELIAS DISNEY,
FOUNDER OF WALT DISNEY CO.

Creating a Marketing Plan

Everyone knows you need a business plan, yet many entrepreneurs don’t realize a marketing plan is just as vital.
Unlike a business plan, a marketing plan focuses on winning and keeping customers. A marketing plan is strategic and includes numbers, facts and objectives. Marketing supports sales, and a good marketing plan spells out all the tools and tactics you’ll use to achieve your sales goals. It’s your plan of action—what you’ll sell, who will want to buy it, and the tactics you’ll use to generate leads that result in sales. And unless you’re using your marketing plan to help you gain funding, it doesn’t have to be lengthy or beautifully written. Use bulleted sections, and get right to the point.
Here’s a closer look at creating a marketing plan that works.
POSITION POWERS
The right image packs a powerful marketing punch. To make it work for you, follow these steps:
• Create a positioning statement for your company. In one or two sentences, describe what distinguishes you from your competition.
• Test your positioning statement. Does it appeal to your target audience? Refine it until it speaks directly to their wants and needs.
• Use the positioning statement in every written communication to customers.
• Integrate your company’s positioning message into all your marketing campaigns and materials.
• Include your team in the positioning effort. Help employees understand how to communicate your positioning to customers.

Step One: Begin with a Snapshot of Your Company’s Current Situation, Called a “Situation Analysis”

This first section of the marketing plan defines your company and its products or services, then shows how the benefits you provide set you apart from your competition.
Target audiences have become extremely specialized and segmented. For example, there are hundreds of special-interest magazines—each targeted to a specific market segment. No matter your industry, from restaurants to professional services to retail clothing stores, positioning your product or service competitively requires an understanding of your niche market. Not only do you need to be able to describe what you market, but you must also have a clear understanding of what your competitors are offering and be able to show how your product or service provides a better value.
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Your business plan and your marketing plan have a lot in common, but make sure to keep them separate. Your business plan should show how you’re going to support your marketing efforts. At the same time, your marketing plan should be a concrete working out of the ideas in your business plan.
Make your Situation Analysis a succinct overview of your company’s strengths, weaknesses, opportunities and threats. Strengths and weaknesses refer to characteristics that exist within your business, while opportunities and threats refer to outside factors. To determine your company’s strengths, con sider the ways that its products are superior to others, or if your service is more comprehensive, for example. What do you offer that gives your business a competitive advantage? Weaknesses, on the other hand, can be anything from operating in a highly saturated market to lack of experienced staff members.
Next, describe any external opportunities you can capitalize on, such as an expanding market for your product. Don’t forget to include any external threats to your company’s ability to gain market share so that succeeding sections of your plan can detail the ways you’ll overcome those threats.
Positioning your product involves two steps. First, you need to analyze your product’s features and decide how they distinguish your product from its competitors. Second, decide what type of buyer is most likely to purchase your product. What are you selling—convenience? Quality? Discount pricing? You can’t offer it all. Knowing what your customers want helps you decide what to offer, and that brings us to the next section of your plan.

Step Two: Describe Your Target Audience

Developing a simple, one-paragraph profile of your prospective customer is the second step in an effective marketing plan. You can describe prospects in terms of demographics—age, sex, family composition, earnings and geographic location—as well as lifestyle. Ask yourself the following: Are my customers conservative or innovative? Leaders or followers? Timid or aggressive? Traditional or modern? Introverted or extroverted? How often do they purchase what I offer? In what quantity?
If you’re a business-to-business marketer, you may define your target audience based on their type of business, job title, size of business, geographic location, or any other characteristics that make them possible prospects. Are you targeting the owners of businesses with 25 or fewer employees or mid-level managers in Fortune 100 companies? No matter who your target audience is, be sure to narrowly define them in this section, because it will be your guide as you plan your media and public relations campaigns. The more narrowly you define your target audience, the less money you’ll waste on ads and PR in poorly targeted media and the unqualified leads they would generate. (Chapters 6 and 7 explain in detail how to define your target customer.)

Step Three: List Your Marketing Goals

What do you want your marketing plan to achieve? For example, are you hoping for a 20 percent increase in sales of your product per quarter? Write down a short list of goals—and make them measurable so that you’ll know when you’ve achieved them.

Step Four: Develop the Marketing Communications Strategies and the Tactics You’ll Use

This section is the heart and soul of your marketing plan. In the previous sections, you outlined what your marketing must accomplish and identified your best prospects; now it’s time to detail the tactics you’ll use to reach these prospects and accomplish your goals.
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WARNING
Don’t mess with success. Once you find an advertising idea that works for you, stick with it. Repetition is the key to getting your message across.
A good marketing program targets prospects at all stages of your sales cycle. Some marketing tactics, such as many forms of advertising, public relations and direct marketing, are great for reaching cold prospects. Warm prospects—those who have previously been exposed to your marketing message and perhaps even met you personally—will respond best to permission-based e-mail, loyalty programs and customer appreciation events, among others. Your hottest prospects are individuals who’ve been exposed to your sales and marketing messages and are ready to close a sale. Generally, interpersonal sales contact (whether in person, by phone or e-mail) combined with marketing adds the final heat necessary to close sales.
To complete your tactics section, outline your primary marketing strategies, then include a variety of tactics you’ll use to reach prospects at any point in your sales cycle. For example, you might combine outdoor billboards, print advertising and online local searches to reach cold prospects but use e-mail to contact your warm prospects. Finally, you can use one-on-one meetings to close the sale. Don’t overlook complimentary materials that support sales: For instance, if you plan to meet with prospects to follow up on leads you’ve generated, you’ll need brochures and presentation materials.
To identify your ideal marketing mix, find out which media your target audience turns to for information on the type of product or service you sell. Avoid broad-based media—even if it attracts your target audience—if the content is not relevant. The marketing tactics you choose must reach your prospects when they’ll be most receptive to your message.
Market Planning Checklist
Before you launch a marketing campaign, answer the following questions about your business and your product or service:
• Have you analyzed the total market for your product or service? Do you know which features of your product or service will appeal to different market segments?
• In forming your marketing message, have you described how your product or service will benefit your clients?
• Have you prepared a pricing schedule? What kinds of discounts do you offer, and to whom do you offer them?
• Have you prepared a sales forecast?
• Which media will you use in your marketing campaign?
• Do your marketing materials mention any optional accessories or added services that consumers might want to purchase?
• If you offer a product, have you prepared clear operating and assembly instructions if required? What kind of warranty do you provide? What type of customer service or support do you offer after the sale?
• Do you have product liability insurance?
• Is your packaging likely to appeal to your target market?
• If your product is one you can patent, have you done so?
• How will you distribute your product?

Step Five: Set Your Marketing Budget

You’ll need to devote a percentage of projected gross sales to your annual marketing budget. Of course, when starting a business this may mean using newly acquired funding, borrowing or self-financing. Just bear this in mind—marketing is absolutely essential to the success of your business. And with so many different kinds of tactics available for reaching out to every conceivable audience niche, there’s a mix to fit even the tightest budget.
As you begin to gather costs for the marketing tactics you outlined in the previous section, you may find that you’ve exceeded your budget. Not to worry. Simply go back and adjust your tactics until you have a mix that’s affordable. The key is to never stop marketing—don’t concern yourself with the more costly tactics until you can afford them.
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Dream the dream. Your marketing plan should include a “blue sky” section in which you put your feet back and look at where you think you’ll be in a couple of years. Especially in small businesses, it’s a waste of time to formulate marketing thoughts that go out more than two or three years. But dreams are important—and they can be fun, too.
So what should you spend on marketing? There’s no hard-and-fast guideline. In fact, the amount varies based on your industry, the amount of competition you must overcome, and the type of media you have to use to reach your audience. A particularly complex message will also require a bigger marketing budget because prospects will need to be guided through the education phase, which involves more advertising and an increase in the repetition of your mes sage. One study showed that major advertisers with well-established brand names, including General Mills, Kodak, Dunkin’ Donuts and Kraft Foods, spend an average of 11.6 to 12.4 percent of sales on marketing. On the other hand, many successful small businesses that are competing for brand recognition and market share budget approximately 15 to 19 percent of sales.

Where to Advertise

Once you know your target audience, it’ll be easier to determine which media will work well for you. Much of this is just common sense, based on your product or service, method of sales and audience.
“All you need in this
life are ignorance and
confidence, and then
success is sure.”
-MARK TWAIN
Sure, it would be great if you could afford to buy a full-page color ad in Time magazine or a 60-second commercial during the Super Bowl. But in addition to being beyond your budget, such ads aren’t even the most effective way to go for a small company.
Small companies succeed by finding a niche, not by targeting every Tom, Dick and Harry. (Remember the “Choose Your Target” chapter in Part 2?) Similarly, you need to focus your advertising as narrowly as possible on the media that will reach your customers. Your customers’ location, age, income, interests and other information will guide you to the right media.
Suppose you ran a business selling model train supplies nationwide online and by mail order. It would make sense to advertise in a mix of national specialty magazines, on websites targeting aficionados, and in specialty e-newsletters catering to the hobby rather than advertising in, say, The New York Times. On the other hand, if you sold model trains from a hobby shop rather than online or via mail order, the vast majority of your customers would be drawn from your local area. Therefore, advertising in national hobbyist magazines would net you only a few customers. In this case, it would make more sense to advertise in local phone directories (both online and offline), area newspapers or magazines that carry related editorial sections, or by commercials on carefully selected cable TV programming targeting the local area.
Like any aspect of running a business, marketing involves a measure of trial and error. As your business grows, however, you’ll quickly learn which advertising media are most cost-effective and draw the most customers to your company. Here’s a closer look at the different types of advertising methods and tips for succeeding with each.

Print Advertising

The print ad is the basic unit of advertising, the fountainhead from which all other forms of advertising spring. Knowing the principles of creating print ads will help you get results in any other advertising media you use. Print ads have helped launch some of the most successful products and services we know. And there’s no reason they can’t work for you, too—if you observe a few hard-and-fast rules.
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Make sure all your ads answer every customer’s number-one question: “What’s in it for me?”
Most print ads out there are poorly conceived and, as a result, perform badly. If an ad lacks a strong motivating message, especially in the crowded marketplace of a newspaper or magazine, it becomes a costly lesson—one your business will be lucky to survive. The good news? With so many bad ads out there, if you can put together a good one, you’re way ahead of the game.
Whether you are developing an ad yourself or having someone else craft it for you, make sure it follows the five fundamentals of successful ads.
1. It should attract attention. That sounds obvious, but nothing else matters unless you can do this. And that means having a truly arresting headline and visual element.
2. It should appeal to the reader’s self-interest or announce news. An ad that takes the “you” point of view and tells readers how they’ll benefit from your product or service piques and keeps their interest. And if, in addition, it has news value (“Announcing a bold new breakthrough in moisturizers that can make your skin look years younger”), your ad has a better than fighting chance.
3. It should communicate your company’s unique advantage. In other words, why should the prospect pick your firm over a competitor’s?
4. It should prove your advantage. One convincing way to do that is through testimonials and statistics.
5. It should motivate readers to take action. This is usually accomplished by making a special offer that “piggybacks” your main sales thrust. Such offers include a free trial, a discount or a bonus.
An ad doesn’t have to do a “hard sell” as long as it is an all-out attempt to attract, communicate with and motivate the reader. That process starts with the single most important element of any ad: the headline.
GO FOR THE PROS
Can you create your own advertising copywriting and design? If you have a background in marketing and advertising, the answer may be yes. If not, however, you’re better off hiring professionals. No matter how creative you are, a commercial artist or a graphic designer can vastly improve almost any ad created by an entrepreneur.
 
However, since no one knows your business better than you, it’s a good idea to develop your own rough draft first. Think about the key benefits you want to get across, what makes your company different from and better than the rest, and the major advantages of doing business with you.
 
If you’re reluctant to spend the money on a copywriter and a graphic designer, don’t be. Printing, distributing and placing your advertising and marketing materials are going to be costly. If the materials you’re paying to have printed aren’t well-written, eye-catching and effective, you’re wasting your money.
 
Graphic design and copywriting are two areas where it’s possible to get good work at substantial savings. Plenty of freelance, one-person graphic design and copywriting businesses exist, many of them quite reasonably priced. Ask friends, other business owners or your chamber of commerce for referrals. Many copywriters and designers will cut you a price break on the first project in hopes of winning your business in the future.

Headlines That Work

Some of the biggest flops in advertising contained convincing copy that never got read because the ads lacked a great headline or visual element to hook the passing reader.
David Ogilvy, founding partner of legendary ad agency Ogilvy & Mather, said that on the average, five times as many people read the headlines of ads as read the body copy. Headlines that work best, according to Ogilvy, are those that promise the reader a benefit—more miles per gallon, freedom from pimples or fewer cavities.
Flip through a magazine or a newspaper and see what you notice about the ads. Typically, it is the headlines that your eyes go to first. Then notice how many of those headlines promise a benefit of some kind.
However, expressing a benefit is not enough if the way you communicate it is dull and hackneyed. Your headline should be unusual or arresting enough to get interest. Here are some examples of headlines that got noticed:
• “When doctors feel rotten, this is what they do.”
• “Why some foods explode in your stomach.”
• “How a fool stunt made me a star salesman.”
John Caples, co-author of the classic guide Tested Advertising Methods, recommends beginning headlines with such words or phrases as “New,” “Now,” “At last,” “Warning” or “Advice” to pique interest. He also suggests using oneor two-word headlines and giving readers a test in the headline to get them involved (such as “Do you have an iron deficiency? Take this simple test to find out”).
Whatever you do, don’t use your company name as the headline for your ad. This is one of the most common mistakes small companies make. Would you read an ad whose most eye-catching element was “Brockman Financial Services”? Probably not.
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Can’t come up with ideas for your ad? Try a brainstorming session. Jot down words or phrases related to your product or service and its benefits. Then see what associations they trigger. Write down all the ideas you can think of without censoring anything. From those associations—whether words, phrases or visual images—come ideas that make good ads.

Ads That Stand Out

Imagine scanning a convention half full of people dressed in formal attire and suddenly noticing that one brazen attendee is wearing overalls and a red flannel shirt. Is it safe to say your eyes would be riveted to that individual? Your first reaction might be “How dare he?” but you’d also probably be curious enough to walk over and find out what this audacious char acter was all about.
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Sometimes the story of your business can make an interesting “hook” for a print ad or a brochure. The social worker who started a maid service could use a headline like “Why I gave up social work to rid the world of dust balls.” If your story’s intriguing enough, it could get readers hooked.
Such nonconformity can have the same riveting effect in advertising. Imagine scanning a newspaper page full of ho-hum little ads and then noticing that one of them stands out from the crowd. All of a sudden, the other little ads become invisible, and the unique one grabs all the attention. That ad has accomplished the single most difficult task small-business advertising faces—simply getting noticed.
Ideally, your advertising should reflect your company in both look and message. An ad represents you and what you have to offer. If it’s generic, it won’t have the power to grab attention or persuade prospects to take action.
Even a small ad, if it exhibits something a little unexpected, can steal the thunder of larger, more traditional ads that surround it. But what can you say in a small space that gets noticed and makes an impression? Here are a few ideas that could work with a variety of products or services.
For a restaurant. Use a large but short headline that can’t help but arouse curiosity, such as “Now, that’s enormous!” This would then be followed by an explanation that this is usually the reaction when one of Francisco’s Super-Subs (or whatever largeserving entrée) is placed in front of a customer.
For a beauty salon. Use a small ad with the headline “Can we have your autograph?” in quotes. Follow with copy that reads: “Be ready to draw the attention of admirers when you leave Noreen’s Cut ’n’ Curl—for people are sure to recognize you as the star you are.”
For a carpet cleaner. Try a small ad that shows a blowup of a dust mite with the headline “They’re hiding in your carpet.” The body copy then explains that these bugs are invisible to the naked eye but are accumulating by the thousands in your uncleaned carpet.

Ad Placement

There are two principal publication categories to consider for print advertising. The first, the newspaper category, has a positive and a negative side. On the plus side, you can get your ad in very quickly. That enables you to run an ad, for example, that capitalizes on some market turn of events that saves your prospects money if they act fast and buy from you. This could be very exciting news for them, and that’s perfect because they are in a “newsy” frame of mind when they read the newspaper.
On the downside, newspapers usually have a shelf life of just 24 hours. Therefore, if you run your ad on Monday, you can’t count on anyone discovering that ad on Tuesday. As the saying goes, “Nobody wants to read yesterday’s news.”
Just as with most media, your budget must allow for multiple insertions—it’s essential to run your ad with enough frequency for its message to penetrate. Regular exposure of the ad builds recognition and credibility. If some of your prospects see your ad but don’t respond to your first insertion, they may well respond to your second or third. If you have confidence in your ad’s message, don’t panic if the initial response is less than what you wanted. More insertions should bring an improved response.
The second type of publication is magazines, for which there are specialty categories of every kind. This allows you to target any of hundreds of special-interest groups. Another advantage of magazines, especially monthlies, is that they have a longer shelf life; they’re often browsed through for months after publication and also often have passalong readership. So your ad might have an audience for up to six months after its initial insertion. Of course, an effective campaign requires multiple insertions. After all, readers can’t be expected to see and recall every ad in each issue, and smaller space ads may require even higher frequency than larger ads to get noticed over time.
THE GOOD WORD
Third-party praise—whether from a customer, an industry organization or a publication—is one of the most effective tools you can use to give your ad, commercial or direct-mail package added credibility. This can take a variety of forms:
• If your business has received some kind of prize, mention in the press or other honor, don’t hesitate to put it in your advertising. “Rated #1 By Dog Groomers Monthly” or “Voted ‘Best Value’ By The Chagrin Falls Gazette” are good ways to establish your product or service’s benefit in customers’ eyes.
• Testimonials from individual customers carry weight, too. “Wanda’s Party Planners Gave My Son The Best Birthday Ever!—Jane Smith, Wichita, Kansas,” attracts customers’ attention. How to get testimonials? If a customer says something nice about your business, don’t let the compliment slide—ask, then and there, if you can use the testimonial in your sales materials. (You may want to get this in writing, just to be on the safe side.) Most customers will be happy to comply.
• Even if your company hasn’t gotten recognition, perhaps you can use a part, a process or an ingredient from one of your suppliers that has received praise. For example, you could say “Made With The Flame Retardant Rated #1 By The American Fire Safety Council.” This tells your customers you think highly enough of them to provide them with such a great product or ingredient.
• If you’re a member of the Better Business Bureau, that’s an implied endorsement, too. Be sure to post your BBB plaque prominently on your store or office wall, or use the logo on your letterhead.
Researchers have found the following about magazine ads:
• Full-page ads may attract about 70 percent more readers than fractional-page ads.
• Adding a photograph or illustration dramatically increases an ad’s power to draw readers.
• Many successful ads use photographs unrelated to the subject matter.
• It’s crucial to maintain a balance between the space devoted to photos or illustrations and copy.
There must be sufficient text to draw readers’ attention, which is crucial to advertising success.
When planning advertising in any print medium, contact the publication first and ask for a media kit. This contains rate information for various sizes of ads as well as demographic information about the publication’s readership—age, income and other details to help you decide if this is where your buyers are. The media kit also indicates specifications for the format in which you’ll have to deliver your ad to the publication.
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AHA!
The most persuasive words in advertising: “free,” “you,” “now,” “new,” “win,” “easy,” “introducing,” “save,” “money,” “today,” “guarantee,” “health,” “safety,” and “discovery.”

Radio and TV Advertising

Many entrepreneurs believe that TV and radio advertising are beyond their means. But while advertising nationally on commercial network TV may be too costly for many entrepreneurs, advertising on local stations and especially on cable TV can be surprisingly affordable. Armed with the right information, you may find that TV and radio advertising deliver more customers than any other type of ad campaign. The key is to have a clear understanding of your target audience and what they want or listen to so the money spent on broadcast advertising is invested in programming that reaches them in the right way and in the right context.
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Considering advertising on cable? Look into a “cable co-op,” where several companies collaborate on an ad package that promotes all their services or products.
“A lot of advertising decisions are made more from the heart than from the head,” says William K. Witcher, author of You Can Spend Less and Sell More, the classic guide to low-cost advertising. Witcher warns entrepreneurs not to get so swept up in the idea of advertising on TV or radio that they neglect to do the necessary research.
Sitting down and coming up with a well-thought-out advertising plan is crucial, Witcher says. “Don’t feel that you can simply throw a bunch of dollars into the advertising mill and create miracles.”
Planning is essential if you’re approaching broadcast advertising for the first time. Experts suggest entrepreneurs take the following steps before diving in:
Use the target audience description from your marketing plan as the basis for your broadcast buy. Steer clear of any media or programming that doesn’t help you reach your audience with as little waste as possible.
Set a rough budget for broadcast advertising. Come up with an amount that won’t strain your business but will allow you to give broadcast advertising a good try. Many stations suggest running ads for at least three months. A good rule of thumb for a cable TV buy is to budget a minimum of $1,500 per month, plus production. The rates for radio time will vary depending on the size of the market, the station’s penetration, and the audience of the shows on which you want to advertise.
Contact sales managers at TV and radio stations in your area and arrange to have a salesperson visit you. Ask salespeople for a list of available spots that air during hours that reach your target audience.
Talk to other businesspeople in your area about their experiences with broadcast advertising. While salespeople from TV and radio stations can be helpful, they are, after all, trying to sell you something. It is your responsibility to be a smart consumer.
THE SMALL STUFF
Should you use your limited advertising budget to create larger, more visible ads that restrict you to advertising less frequently, or smaller, less visible ads that you can afford to run more frequently?
The answer: smaller ads more frequently. The reason is that most people—even those who are likely candidates for your product—typically don’t respond to ads the first time they see them. Prospects may have to notice an ad a number of times and develop a level of comfort with it (especially if the product or service is new to them) before they take action. The more often prospects see your ad, the more comfortable they’ll become and the better the chance they’ll respond to it. Of course, if your ad is too small, it may not be seen at all, so be sure to pick an ad size that allows you to shine and still maintain a frequency you can afford.
Ask about the “audience delivery” of the available spots. Using published guides (Arbitron or Nielsen), ask the salesperson to help you calculate the CPM (cost per thousand) of reaching your target audience. Remember, you are buying an audience, not just time on a show, and you can calculate pretty exactly how much it’s going to cost you to reach every single member of that audience.
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Get your ad on the radio—for free—by bartering your products or services for air time. Called “trade-out,” this practice is common. Radio stations need everything from janitorial services and graphic designers to products they can give away as on-air prizes, so whatever you sell, you’re likely to find a ready market.
Inquire about the production of your commercial. Fortunately, major cable companies are now offering production assistance to small-business owners with rates that can be as little as $500 to $1,200 per spot. And some independent TV stations will offer low-cost or free production if you enter into an agreement to advertise for at least three months. With a similar contract, some radio stations will provide a well-known personality to be the “voice” of your business at no extra cost. However, for multivoice, high production value spots, you’ll want to enlist an outside production company.
RIGHT PLACE, RIGHT TIME
Today, marketing messages can go anywhere and everywhere people do, thanks to “out-of-home” advertising. You can reach boaters with advertising at marinas, golfers out on the links with signage on hospitality carts, or health-conscious consumers while they exercise at their local gyms.
 
Traditional out-of-home advertising encompasses billboards—including the exciting new LED boards on which messages can be changed frequently, even based on the time of day—and transit advertising, from busbacks to subway posters and taxi-top ads.
 
Then there’s alternative out-of-home, generally called “place-based advertising.” This is where things really get interesting. The “street furniture” category includes bicycle-rack displays and posters on bus shelters and trash receptacles. Other place-based media include newsstand, convenience store and shopping mall displays. You can even try placing posters above diaper changing stations or in college campus laundry rooms. Your choices and locations are virtually endless.
 
Follow these three rules for picking the right out-of-home advertising opportunity for your business:
Rule one: The advertising must reach a high percentage of your best prospects. For example, a poster on a bus shelter at a busy intersection can boost sales for a nearby retailer if it is seen often enough by a majority of the store’s customers and prospects.
Rule two: The place-based ad must be in an appropriate venue. The posters you find in the restrooms of popular bars and restaurants typically carry ads for other entertainment-oriented businesses because their messages are compatible with the venue.
Rule three: Your ad must reach prospects at the right time. From billboards promoting business services directed at commuters on their way to work to posters for beauty products in neighborhood hair salons, out-of-home advertising should target your prospects at the time when they’ll be most receptive to your message.
Compare the various proposals. Look at the CPMs, and negotiate the most attractive deal based on which outlet offers the most cost-effective way of reaching your audience. Buying time well in advance can help lower the cost. For TV ads, stick with 30-second spots, which are standard in the industry. And keep in mind that the published rates offered by TV and radio stations are often negotiable. Generally, rates vary widely during the first quarter of the year, and sometimes during the third quarter or late in the fourth quarter, traditionally slow seasons for many businesses. But expect to pay full rates during the rest of the year or during popular shows or prime time.

Getting Help

Once you’ve gone through all these steps, you should have a good idea what is involved in broadcast advertising. But learning to be a smart consumer in the TV and radio market isn’t always easy. If you’re worried about making the right choice on your own, consider hiring a consultant or an advertising agency to guide you.
When approaching radio stations, it’s important to learn their demographics, and look at how closely they match your target market. Sorting out demographics is one area where hiring an ad agency or consultant can really help. Every radio station in the country says they are number one in a certain time spot or with a certain audience, so it helps to have an insider on your team.
Radio can be a good option if you only need to reach a small geo graphic area, such as a single city or town. Another option that can help an advertiser pinpoint a small geographic area is cable TV. With networks featuring all-news, sports, music, weather and other specialized topics, cable lets you microtarget the groups that fit your customer profile. Plus, cable TV allows you to reach your target audience in specific towns, without wasting money covering viewers who are too far away to use your products or services. Major cable system providers, such as Comcast and Adelphia, allow you to buy advertising on cable programming within geographic zones that can be as small as five miles or in multiple zones to reach an entire major metropolitan area. So it’s easy to target both geographically and based on the special viewing interests of your audience.
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Don’t wait to market. Fight the tendency to pay too little attention to your customers and to resist marketing until you’re in trouble. Market when times are good, and you’re more likely to keep the good times rolling.
For example, a business owner looking to reach upscale members of the community might try advertising on CNN. A sporting goods store might make a big splash by advertising locally during the national broadcast of “Monday Night Football,” carried by ESPN.
But what if you want to target prospects beyond your local broadcast area? You can still use cable TV and radio to achieve your goals. Rather than advertise on your local cable TV provider, for example, you could go directly to national cable networks—from HGTV to ESPN 2—and negotiate for a spot schedule on programs that are targeted to your audience.
Today, there are more options than ever to reach national audiences using radio advertising. Thousands of radio stations now simulcast on the internet, and there are networks of internet-only radio stations to suit every breed of listener. If your startup is well-capitalized and you can budget at least $2,000 for a national radio campaign as part of your media mix, you can reach an affluent audience online.
The monthly audience for internet radio tops an estimated 48 million, and a study from Arbitron and Edison Media Research showed online radio listeners are twice as likely to live in households with annual household incomes of more than $100,000. There are other advantages as well: Nearly 80 percent of internet radio listeners tune in while they’re at work. So when your spot plays, your prospects are just one click away from your website. In addition to running audio advertising, it’s often possible to place online ads your prospects will see while listening.
The challenge is to book the best stations that can reach your audience in sufficient numbers to produce results. Net Radio Sales (netradio sales.com) represents the largest network of internet radio stations and is a good place to start an online radio campaign using one station or all stations in a particular format or in a specific geographic market area.

Direct Mail

Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters. Major corporations know that direct-mail advertising is one of the most effective and profitable ways to reach out to new and existing clients.
What’s the advantage? Unlike other forms of advertising, in which you’re never sure just who is getting your message, direct mail lets you communicate one-on-one with your target audience. That allows you to control who receives your message, when it is delivered, what is in the envelope and how many people you reach.
To create an effective direct-mail campaign, start by getting your name on as many mailing lists as possible. Junk mail isn’t junk when you’re trying to learn about direct mail. Obtain free information every chance you get, especially from companies that offer products or services similar to yours. Take note of your reaction to each piece of mail, and save the ones that communicate most effectively, whether they come from large or small companies.
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e-FYI
Get your business on target with these two direct-mail websites:
1. Directmag.com offers case histories, mailing list resources and e-newsletters, including DirectNewsline for direct marketers.
2. Dmnews (dmNews.com) offers business updates, a blog, white papers and e-mail newsletters.
The most effective direct-mail inserts often use key words and colors. Make sure the colors you use promote the appropriate image. Neon colors, for example, can attract attention for party-planner or gift basket businesses. On the other hand, ivory and gray are usually the colors of choice for lawyers, financial planners and other business services.
To involve the reader in the ordering process, many mailers enclose “yes” or “no” stickers that are to be stuck onto the order form. Companies such as Publisher’s Clearing House take this technique further by asking recipients to find hidden stickers throughout the mailing and stick them on the sweepstakes entry. It also asks customers to choose their prizes, which gets them even more involved.
Next, read up on the subject. A wealth of printed information is available to help educate you about direct mail. Two of the betterknown publications are DM News, a bimonthly trade paper, and Direct Magazine, a monthly.
The Direct Marketing Association (DMA) in New York City is a national trade organization for direct marketers. For a catalog that highlights many of the direct marketing industry’s books, a free brochure that lists a variety of direct marketing institutes and seminars across the country, or more information about joining, call the DMA at (212) 768-7277. You can also visit the group’s website at the-dma.org.

Mailing Lists

No matter what type of direct mail you send out, you’ll need a mailing list. The basic way to build a mailing list is by capturing name and address information for everyone who buys or shows interest in your product. If you sell by mail, you’ll already have this information. If not, you can get it off customers’ checks. Hold a drawing and ask customers to fill out an entry card or drop their business cards in a bowl. Or, if you’re a retailer, simply put a mailing list book next to your cash registers where customers can sign up to receive mailers and advance notices of sales. One of the best ways to build a mailing list is to compile a database using the leads generated by your other forms of advertising.
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AHA!
A growing number of list publishers sell lists on CD. Since these lists may not be updated as regularly as other list sources, be sure to ask how current the list is before you buy.
The list you develop using your own customers’ names is called your “house list.” Of course, when you’re starting out, your house list is likely to be skimpy. To augment it, one way to go is to rent a mailing list. There are two ways to rent a mailing list: approaching the company you want to rent from directly or using a list broker.
Any company that mails merchandise or information to its customers—catalog companies, magazine publishers, manufacturers, etc.—usually has a list manager who handles inquiries and orders for the mailing list. If, for example, you know that subscribers to Modern Photography magazine are likely to be good prospects for your product, then you can rent the subscriber list directly. Another good source is local newsletters or group membership lists. Many organizations will let you use their member lists; these can be very cost-effective.
If you aren’t sure whose list you want, then call a mailing list broker. List brokers know all the lists available and can advise you on what type of list would work best for your business. Many can also customcreate lists based on your requirements. You can find brokers in the Yellow Pages under “Mailing Lists” and “Mailing Services,” and in the classified sections of mail order trade magazines. The DMA can also refer you to brokers. Another source is the monthly directory Standard Rate and Data Service Direct Marketing List Source, available in major reference libraries.
Some list companies let you sample a list before making a pur chase. Rental costs typically range from a low of $50 per thousand (CPM) for the most basic compiled lists to $250 CPM for names with multiple selections, such as recipient’s name, job title, type of business or number of children, for example. This is for a one-time use only. (List owners typically “seed” their lists with their own names and addresses so they can tell if you use the list more than once.)
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SAVE
Keep your house mailing list up-to-date by cleaning it regularly. To do this, send out mailers with the notation “Address Correction Requested.” The post office won’t charge you for sending you the new addresses of your customers when the cards are returned.
A list will typically be provided in an electronic format or on pre-printed mailing labels and sent directly to the vendor you want to do the final mailing. Consider using a mailing house. Mailing houses have the equipment to professionally cut and apply preprinted labels or to download electronic files and rapidly create and affix labels by the thousands to your envelopes. A large mailing house can also personalize and print your letter and envelope, handle the folding and insertion and do everything else associated with assembling your direct-mail package. Depending on the level of service you need, rates may range from a few hundred to several thousand dollars for a 5,000-piece mailing.
Most experts agree renting fewer than 5,000 names isn’t worthwhile, primarily because a large mailing doesn’t cost much more per piece than a small mailing, and the returns are higher. Start with about 5,000 names for your first mailing, and consider it a test.
Entrepreneurs inexperienced with direct mail are often surprised to learn that the average positive response rate is between 2 and 3 percent. In some industries or with some types of products and services, a 1 percent response rate may be considered positive. If you believe your responses are less than stellar, it may be that the market isn’t right for your product, your mailer isn’t attention-grabbing enough, or your prices are too high. If you get a response of 2 percent or higher, then you’re on the right track.
Once you develop a complete mailer, continue to test your enclosures by adding or eliminating one important element at a time and keeping track of any upward or downward changes in response.

Brochures

For many businesses, especially service companies, a brochure is the building block of all marketing materials. A brochure is an information piece that doubles as an image maker. The look and feel of the brochure don’t only describe the benefits of your product or service, but also convey your legitimacy and professionalism. A brochure can make your small company look just as substantial as a more established rival, making it a great equalizer.
The good news is that a brochure doesn’t have to be expensive. It can be almost as cheap to produce as a flier. A brochure can be as uncomplicated as a piece of folded paper—the same piece of letter-sized paper that would otherwise be a flier. By folding it twice, as you would a letter, then turning it upright so it opens like a book, you have the basis for a brochure.
The magic of the brochure format is that it allows for a more dramatic presentation of the material than does a flier. Think of your brochure cover as the stage curtain, creating anticipation of the excitement that lies inside. An eye-catching headline on the cover is like the master of ceremonies, piquing the prospect’s interest about what’s behind the “curtain.” Inside, you first need to pay off the promise, or claim, in the cover headline with another headline, then use the remaining space for elaboration.
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SAVE
Go to direct-mail school in your mailbox. Each day your mail brings a handful of direct-mail solicitations you can use for hands-on education. Study the letters, use design ideas from the fliers, and keep copies of different types of reply cards. Big-time direct-mail companies spend millions refining their mailing techniques. You can use that information just for the price of tearing open the envelope.
The principles of writing successful brochures are basically the same as those for writing print ads (see the “Print Advertising” section starting on page 502). However, brochures offer more room than ads, so there is a tendency to get long-winded and wordy. Keep your brochure brief, with enough information to interest readers but not so much repetition that they get bored. Use benefit-laden headlines and subheads, and “explain” your benefits by detailing all your features in the body copy.
The sample on page 522 shows a “before and after” makeover of a brochure for a company called My Right Hand that provides business support services. The first step in boosting this brochure’s appeal was coming up with a tempting headline for the cover. The goal is to arouse the interest of potential clients—the harried sole proprietor who needs help with the detailed paperwork involved in running a business alone. The revised headline “How To Free Your Business From Paperwork Purgatory” accomplishes that goal.
In this or any other headline, it’s important to go beyond the ordinary. Give your headline an unexpected word or phrase that expresses the idea in a memorable fashion. Adding the word “purgatory” gives this headline extra drama and emotion and puts the worst face on paperwork.
When the prospect flips the page, he or she finds a short-storylength headline that builds on the cover: “PAPERWORK. It ties you up. It slows you down. It ticks you off. All good reasons to delegate it to us ... a service you’ll feel confident calling MY RIGHT HAND.”
This headline pushes the prospect’s buttons (i.e., sensitivities) by emphasizing that paperwork is a grind, a bore and a frustration. The buzzword “delegate” is used because delegation is recognized as essential to entrepreneurial success when a business has grown too big for one person to handle. And since confidence and trust are essential when giving your business papers to an unknown company, the headline also emphasizes the company’s trustworthiness by using the word “confident.”
The overall look of a brochure is the key to making a good impression on prospective customers. Here are some tips to make sure yours is inviting to the eye:
• Have the descriptive copy typeset in a fairly large size. There’s no bigger turnoff for a prospect than squinting at tiny printing.
• Use light-colored paper. This, too, makes the brochure easier to read.
• Break up the copy with subheads. This makes the overall brochure less intimidating to read.
• Add something unexpected visually. One idea is to use a striking photo or graphic on the cover.
• Use the back of your brochure for a “business biography.” This is a good place to talk about how your company got started, how it has succeeded and where it is today.
• Always use endorsements, testimonials, industry affiliations or other credibility-raising elements.
• Spend a little extra money. It’s worth it to have your brochure printed on cover stock or quality heavyweight paper. A key part of the impression it makes is the way it feels in the customer’s hand.
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Even if you do most of your business by mail or over the phone, customers like to see who they’re doing business with. Put your photo on your brochures or mailings. It conveys friendliness and builds confidence in your company.

Sales Letters

Whether you send it out solo or as part of a direct-mail package (see “Package Deal” on page 538), a sales letter can be one of your most effective marketing tools, allowing you to speak one-on-one to prospects and customers. What makes a good sales letter? There are three key rules:
Sample Brochure
BEFORE: The flier format, while imparting the basic message, is a bit “downscale” for a somewhat sophisticated service.
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AFTER: A brochure gives you a more polished image. It says you are seasoned, sophisticated, professional.
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1. Start with a hook. Begin your letter with a provocative thought or idea that hooks readers and makes them want to keep reading.
2. Give them the facts fast. Quickly list the top two or three benefits of doing business with your company.
3. End persuasively. Close the letter with a strong argument that compels readers to respond.
How long should a sales letter be? The standard answer is “long enough to do the job.” And yes, it takes longer to persuade a prospective customer to buy than to merely get him to inquire further. But in today’s high-tech age, people become impatient with anything that takes much longer than an eyeblink to read.
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Trial sizes and sampling work. Have employees pass out product samples in front of your store; if you provide a service, offer a free trial period or consultation.
Does this mean the sales letter is dying out? No; people will still read sales letters. However, they don’t like it when you make them work at it—so keep it lean and mean.
Equal in importance to your message (some would say more important) is the look of your letter. It should be visually inviting. As soon as prospective customers pull your letter out of the envelope, before they read one word of your sales message, they instantly have a positive or negative reaction based on the overall look of the letter. If it’s crammed with words, readers will get a negative impression right away.
ADDED DIMENSION
Add dimension to your sales letters—literally—by attaching some type of small item to the letter. Make it something that ties in to the letter’s headline or subject. For example:
• A plumber could stick a minipacket of aspirin to a letter with a headline reading “Pipes giving you a headache? Take two of these, and call us in the morning.”
• Child’s plastic play scissors attached to the letter could be combined with a “Cut your costs ...” message.
• Or try a packet of coffee with a headline like “Sit down, have a cup of coffee on us, and learn how you can profit from stocking Steve’s Safety Bolts.”
A 3-D item inside gives your direct-mail package bulk. Recipients are curious and more likely to open the letter. Once they see what’s inside, they’ll read on to find out the connection between the item and the words.
To have the best chance of being read, your letter should be open and airy-looking with short paragraphs—including some that are one sentence or even one word long. (A one-word paragraph? Here’s how: Write something like “I have one word for suppliers who say they can’t offer you a one-year guarantee.” Follow that with a one-word paragraph such as “Baloney!” or any similar word you want to use. It is a real attention-getter.)
Strip your sales message down to the essentials so readers can breeze through it. This may mean hacking out words and phrases you have slaved over. But each extra bit you take out increases your chances of actually getting a response.
Last but not least, be sure to use “you.” This is a good rule of thumb in any form of advertising, but especially in a sales letter, where you are, in a sense, talking to the prospect face-to-face. Always talk about your product or service in terms of its benefit to the reader, such as “You’ll save more than 50 percent.” Sounds obvious, but it’s easy to lapse into the impersonal “we” mode, as in “We offer our customers discounts of more than 50 percent.”
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It’s easy to get caught up in marketing campaigns that bring sales from new customers yet overlook the importance of retaining existing customers. It’s less expensive to upsell an old customer than to win a new one, so you need to strike a balance between acquisition and retention tactics, such as loyalty programs.

Postcards

The humble postcard has the power to beat all other direct-marketing formats when it comes to generating sales leads. Why is the postcard so effective? It’s much less costly to prepare and mail than other direct-mail efforts, but that’s not its greatest strength. It can be mailed out practically overnight, but that’s not its greatest strength, either.
A Little Surgery Can ...
This company’s old letter is a good first start. It’s persuasive and has immediacy. All it needs is some additional structure and a little nipping and tucking to make it work even harder.
 
BEFORE:
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RECOMMENDATIONS:
 
A. Headline transplant:
The old headline telegraphs a strong benefit—but may work better as a subhead, beneath the new headline.
 
B. Personalization implant:
Who are you talking to? With no salutation, this letter doesn’t draw readers in.
 
C. Pace lift:
The old letter opens a little slowly and dully. That can be a turnoff to the impatient, indifferent reader.
 
D. Paragraph liposuction:
The old letter has a few oversized paragraphs that look formidable to read. That immediately disinvites the reader.
 
 
 
 
 
 
A letter with potential ...
... Make a Letter Better
 
AFTER:
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RECOMMENDATIONS:
 
A. Headline transplant: The new headline pushes an emotional “hot button” that gets prospects riled up—and ready to act.
 
B. Personalization implant: A letter with opening personalization enables you to bond one-to-one with the reader. That connection is the same that a sales rep hopes to achieve. And a letter is a sales rep.
 
C. Pace lift: The new letter opens with a provocative, one-sentence “hook,” then quickly hops from point to point.
 
D. Paragraph liposuction: The new letter keeps paragraphs lean, mean and easy to read.
 
 
 
 
 
 
 
... Potential released!
The real power of a postcard is that it takes only a flip of the wrist for recipients to get your message. They read their name on it, then flip it over to see what’s on the other side. Simple, but incredibly powerful. Why? Because a huge percentage of direct mail never even gets opened. That’s the key word—“opened.” A postcard never has to overcome that obstacle. Even a folded flier has to be unfolded, while all a postcard requires is a flip of the wrist.
More than letters, postcards convey a sense of urgency, making them an ideal way to notify customers of a limited-time offer or special sale. Don’t restrict yourself to the standard 4-by-6-inch postcard format, either. Postcards can be as big as a letter-sized piece of paper, and many really benefit from that extra size. This costs more (although still not as much as a full direct-mail package), but it gives you more room to dramatize your offer. If you do use a larger size, you can make it a picture postcard, with just a large visual on the front and words on the back next to the recipient’s name and address.
“A life spent making
mistakes is not only
more honorable but
more useful than a life
spent doing nothing.”
—GEORGE BERNARD SHAW
Consider the “before and after” makeover (on page 530) on a postcard for SWD Truck Repair. Like many service businesses, SWD’s services aren’t an impulse purchase—meaning buyers usually don’t leap for the phone right after getting the promotional mailer.
What’s a great way to get more attention in the nanosecond of time it takes the recipient to turn the postcard over? First, the company needs a catchier nickname to use for the purposes of advertising. In this case, “The Truck Doctor” fits the bill perfectly. Nicknames can work for many types of service businesses. Some examples:
For a wedding planner: The Marriage Maestro
For an auto mechanic: The Car Medic
For a party planning service: The Party Smarty
For a carpenter: The Wood Wizard
You get the idea. Next, add an eye-catching graphic on the front of the postcard, along with a provocative headline or teaser that conveys the company’s benefit. In this example, the illustration shows a struggling truck, and the headline urges “Call For A Free Checkup At The Truck Doctor.” It’s a nice play on words that offers a benefit few can resist—a free service. Cartoons with copy balloons, as shown in the makeover, are an excellent way to cut through the advertising clutter and grab the reader’s attention.

Fliers

A hybrid of the postcard and brochure, fliers give you more room to get your message across than a postcard but are cheaper (and easier to design) than a brochure.
Fliers are ideal for certain situations, such as for posting on a bulletin board or handing out at an event. They are also a good tool to enclose with a sales letter if, for example, you want to notify recipients about a short-term sale or upcoming special event.
Because fliers’ primary benefit is that they convey information quickly, make sure yours is easy to read and stands out (see the sample on page 531). Try bright colors to grab the viewer’s eye, and use large type so information can be seen from a distance. Keep type brief and to the point. A crowded flier won’t get anyone’s attention.
While fliers are a useful addition to a marketing campaign, don’t use them as your only direct-mail tool, or you could come off looking amateurish.

Catalogs

For mail order entrepreneurs, a catalog is the backbone of their businesses. But even if selling by mail is only a small part of your business, you’ll be surprised to find out how much you can benefit from a catalog.
If you’re picturing the hefty Spiegel catalog or a glossy magazine like those sent by Pottery Barn, don’t despair. A catalog can be significantly briefer and still be successful. Here are five tips to ensure yours is, too:
Sample Postcard
BEFORE: This postcard has the basics—for a business card. But it’s supposed to grab attention as an advertisement, and it doesn’t.
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AFTER: This approach catches your eye with the cartoon, the contrasting panels and the proposition.
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Sample Flier
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1. Keep it simple. Don’t try to reinvent the wheel. Catalogs look the way they do for a reason. Almost every format you can imagine has been tested numerous times, and those you see most often are the most effective. Choose one of the most common catalog sizes.
2. Borrow from the best. The surest way to plot your catalog layout is to study other catalogs—at least 20 or 30. You’ll then have a collection of the best ideas from the best designers and copywriters money can buy. Study the catalogs, and note any useful ideas.
3. Choose a production route. With the abundance of high-quality desktop publishing programs, chances are you can easily create your own camera-ready catalog design. Microsoft Publisher, for example, includes a design “wizard” that shows you how to easily lay out your catalog pages. The real challenge is to create hard-working copy that’s professional, clean and motivates customers to purchase the featured products. If you’re up to the task, you can save considerable production costs by completing this step on your own. If not, you should look for a professional design team that’s experienced in catalog production. Or, you may want to hire a copywriter to review your initial efforts and improve them before having a catalog printed. After all, with the cost of printing, postage and rental lists, sending a poorly produced piece is a costly mistake.
4. Find the perfect printer. Shop around—you’ll be amazed at the range of prices printers will quote you for the same job. If you live in a small town, call large printers in nearby metropolitan areas since they often offer substantial savings and give quotes over the phone. And don’t overlook the internet when it comes to shopping for the best printer. Some of the country’s largest printers have made it easy to order online, and this is where you may find the most attractive pricing. You can e-mail them your artwork or send it on a CD. It’s a good idea to get at least three bids on any print job you plan to run, and get six or more on a big one.
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WARNING
Don’t launch a direct-mail campaign (especially a catalog) until you’re sure you can handle the orders you might receive. If fulfillment systems aren’t in place and orders don’t get sent out, you’ll lose credibility—and future business.
GIFTS THAT KEEP ON GIVING
Do you offer customers gift certificates? Many entrepreneurs don’t, not realizing how this can boost sales. Here are some suggestions to make the most of this sales tool and also prevent fraud:
• Don’t buy generic gift certificates from stationery or office supply stores. These can easily be duplicated. Invest in custom-designed certificates.
• Avoid cash refunds. State on the certificate that if more than $5 in change is due, it will be issued in the form of another gift certificate.
• Keep a log. Record the number, date of sale and dollar amount of each gift certificate sold. Be sure to note when the certificate is redeemed.
• Use security features like an embossed logo or watermark to prevent photocopying.
Properly used, certificates are like money in the bank for your business since customers often don’t redeem them until months after they’re purchased.
The printers will want to know the physical dimensions of your catalog, whether it will be in four-color, the number of pages to be printed, the kind of paper you want, and the number of catalogs you plan to order. The more catalogs you print, the cheaper your cost per unit. In addition to the catalogs you mail out, you need to include a fresh catalog with each order shipped, give away catalogs to customers or at events, and have extras to send when someone expresses interest—so print a generous quantity.
5. Put it all together. You can spend tens of thousands of dollars on a mail order catalog—but if you do as much as you can yourself, you won’t have to. Today’s technology—from digital cameras to simple desktop publishing programs—makes catalog production and layout simpler than ever.
Of course, the real key to catalog success doesn’t lie exclusively in technology—it’s understanding your customers. Show them why they should buy from you and no one else. Target them with the right mailing lists. And remember, the more you do yourself, the more you save.
Need more help? The Direct Marketing Association can refer you to catalog consultants in your area.
DIRECT HITS
Try these attention-getting direct-mail ideas to power up your business:
Reactivation voucher. Mail a $20 no-strings-attached voucher to any customer you haven’t seen in six months or longer. Few can turn it down ... and even fewer will spend only $20.
Magalog. If you have a catalog, give it more value by enhancing it with problem-solving editorial content. This creates a combination magazine and catalog.
We’ve missed you. Send a card to clients you haven’t seen in a year telling them they’re missed. Include a discount coupon.
Birthday call. Record all customers’ birth dates, and make sure that they get a special call or card from you.

Newsletters

Publishing a company newsletter is a great way to get the word out about your business ... and keep past customers coming back. While many small-business owners have changed from printed newsletters to e-newsletters, which are sent via e-mail, there are still some target audiences, such as seniors, that respond best to old-fashioned snail mail. If your newsletter becomes well-known for valuable content, your readers will spend time with it rather than pitch it into the trash as junk mail.
“The primary benefit of a customer newsletter is keeping your existing customers informed about what you’re doing,” says Elaine Floyd, author of Marketing with Newsletters. Newsletters are also a good way to reach new customers because, if done correctly, they come off as more informative and with less sales hype than most items consumers receive in the mail. In addition to telling readers about your product or service, newsletters inform them about developments in your industry or theirs and share information that affects them. “People might not think they need your product or service,” says Floyd. “Reading an informative newsletter helps convince them they do.”
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Although newsletters give you room for lengthier articles, keep the bulk of your newsletter limited to short pieces, so they are very scannable. You want lots of different items in the hope of providing something interesting to every reader.
The businesses that benefit most from newsletters are those that have to educate customers about the advantages of using their product or service. If you own a candy shop, for example, you might not have enough pertinent information for customers to justify a newsletter. On the other hand, a computer consultant could do a real service by publishing a newsletter about the latest software and hardware.
Your newsletter doesn’t have to be all information. Including a coupon, a special offer or other call to action helps get people to buy. Also, always give upcoming sales or promotions a prominent place in your newsletter. “The promotional aspects of your newsletter should be woven in with the informational,” advises Floyd. If you’re reporting on your industry, talk about your company’s place within the industry. If you’re talking about a trend in the economy—the rising gas prices, let’s say—then tie in the fact that using your company’s service helps customers save money.
PREMIUM PROSPECTS
Whether you call them premiums or advertising specialties, gifts are a marketing tool that works with all demographic groups. Studies show that 40 percent of people remember an advertiser’s name up to six months after receiving a promotional product as a gift.
 
Premiums carrying your company name, logo or message can be used to generate leads, build name awareness, thank customers, increase store traffic, introduce new products, motivate customers and create an unconscious obligation to buy. Premiums can be used at trade shows, open houses, special events and grand openings and in direct mail.
 
Classic premiums include T-shirts, baseball caps, jackets, headbands, writing instruments, desk and office accessories, scratch pads and mugs. Mouse pads and high-tech devices, such as USB memory drives, are some of the more recent premiums gaining popularity.
 
How to make a premium work for you? Research it first. Make sure the item is matched with your target audience. Also make sure the item is good quality. A cheap premium that breaks or doesn’t work in the first place makes a negative impression—just the opposite of what you want.
 
When choosing a premium, ask five questions:
1. How many people do I want to reach?
2. How much money do I have to spend?
3. What message do I want to print?
4. What gift will be most useful to my prospects?
5. Is this gift unique and desirable? Would I want it?
You can find specialty advertising firms listed in the Yellow Pages. Ask to see their catalogs; compare sample quality and prices.
 
While the gift is being offered, focus your marketing and advertising efforts on it. There’s no more powerful word in advertising than “free,” so put the power of freebies to work for you.
Floyd recommends using the following formula, which she calls RISE, to be sure your newsletter covers all the bases:
Recognition. Your newsletter should tell people who you are, what you do and where they can find you. If consumers have to read through two pages of text to find the name of your company, you’re not increasing your name recognition. Use your company logo on the newsletter.
Image. Your newsletter is an important branding tool that can enhance your company’s image. If it’s interesting and professional-looking, customers will think well of your business. If it’s not, they may doubt your credibility. Floyd says most people can create their own professional-looking newsletter with desktop publishing programs or have it done affordably by a freelancer.
Specifics. Give your readers specific reasons why they should choose your product or service. Vague assertions like “We’re the best” don’t work nearly as well as matter-of-fact details about exactly what you can do for them.
Enactment. Make the reader take action—whether by picking up the phone, mailing in a reply card or coming down to your store.
Strapped for things to write about—or don’t have time to write it yourself? Try asking your industry trade association for news services that provide copy in return for a monthly subscription fee. This also ensures the articles are professionally written.
PACKAGE DEAL
While direct mail can mean everything from a postcard to a catalog, many business owners get the best response from sending out a direct-mail “package.” In addition to the sales letter and brochure (see the “Sales Letters” and “Brochures” sections earlier in this chapter), this typically includes three other elements:
1. The outside envelope. There are two schools of thought on this. One school swears that “teaser” copy on the envelope can get recipients to open it. On the other hand, some people throw away anything that looks like junk mail. The opposite strategy is to trick readers into opening your mail by sending direct mail that looks like personal letters. Software programs can print addresses so they look like handwriting. Put only your address, not your company name, on the return address to arouse the recipient’s curiosity.
2. A response form. The form should be easy to fill out. Be sure to include your phone number in case the prospect wants to ask a question or order by phone.
3. A reply envelope. Enclosing postage-paid reply envelopes helps get orders. Even if you can’t afford postage-paid envelopes, include a pre-addressed reply envelope. If the prospect has to put the mailing down and search for an envelope, they may have second thoughts.
If you can’t find a news service, use a clippings service to get story ideas. Though clippings from other publications can’t be reprinted without the writer’s permission, they can give you ideas for articles of your own and keep you updated on hot industry topics.
Tap clients for copy by featuring a “Client of the Month,” showing how your product or service solved a problem they were facing. Or you can team with related businesses; for example, an interior designer could have guest columns written by florists or furniture store owners.
Easy ways to get clients to contribute? Conduct a survey—and print the results. Start a “Letters to the Editor” column. Add a “Q&A” column, where customers can pose their problems and other customers can write in with solutions.
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e-FYI
Some things never change—and your direct mail can benefit from lessons of the past. At the National Mail Order Association’s site (nmoa.org), you’ll find all sorts of information, but don’t miss the exhibits in the site’s “Museum” section, including award-winning direct marketing letters from 1942.
Keep your writing style simple, and make sure you get help proofreading if your skills aren’t up to snuff. A newsletter full of typos or grammatical errors shows clients you’re a careless amateur.
Newsletters can be monthly, semimonthly or quarterly, depending on what your budget is, how much time you have and how fast-paced your industry is. Quarterly publications are generally sufficient to get your name in front of customers; then increase frequency if needed. The key is to be consistent, so don’t take on more than you can handle.
Renting a mailing list isn’t generally a good idea for newsletters, says Floyd. “Your newsletter will be better received if the reader knows about you or needs your product,” she says. Floyd recommends sending newsletters only to current customers, qualified leads and referrals. When someone gives you a business card, send him or her a newsletter. Then you or a salesperson can call the person later, using the newsletter as a starting point to ask about products or services they might need.

Classified Ads

Classified ads are a smart way to reach prospects who are looking for—and are prepared to buy—what you sell. And since they demand neither the eye-catching design of a display ad nor the clever wording of a direct-mail campaign, almost anyone can write them.
What should your ad say? The Newspaper Association of America (NAA) recommends listing your product or service’s main benefit. Does it make people money? Improve their self-image? Use a catchy statement, such as “Feel Good Now!” to create an impact. Not every reader is looking for the same benefit, so list as many as you can afford. The more readers know about your business, the more they’ll trust you.
Experts also recommend using white space to make your classified ad stand out from the competition. White space works especially well in newspapers, which sell ads for pennies a word or by the line. If you place just a few words in each line—the first line listing a benefit, the second the name of your company, the third your address, for example—you have a striking, centered ad surrounded by white space.
“The workplace should
primarily be an incubator
for the human
spirit.”
—ANITA RODDICK, FOUNDER
OF THE BODY SHOP
These brief ads work best when they offer a commonly sold product or service such as tax preparation or catering. Listing the benefits of each isn’t essential because the public knows what to expect. White space in classifieds is also effective when you offer a catalog or another form of literature describing your product. In this case, you might place the main benefit in an opening line that’s designed to grab the reader’s attention, and below the benefit list how to send for the information, noting its price, if any. For example, “Play Backgammon Like a Pro” would be a good benefit line in an ad offering free information about a booklet that shows backgammon players how to improve their game.
Ads that use white space are less common in magazines since these ads are often twice as costly as a typical newspaper classified. However, they are often more effective as well—even more so than in a newspaper because few other white space ads will be competing for the attention of the readers.
Before placing your classified ad, contact the publication and ask for a media kit. They should include guidelines that will help you construct your ad and give you tips on choosing the main benefit, consolidating words, or determining whether the tone should be boldly stated or instead employ a conservative description and a list of benefits. Most media kits also list demographic information about the readers—essential information to determining if the publication is right for you.
Finally, repeat your ad as often as possible, so long as it brings in enough money to justify its expense. Repeating ads helps customers gain familiarity with your product or service and helps break down sales resistance. Once the ad stops pulling in new accounts, it’s time to develop a new ad. A classified that uses fewer words will cost less to run, so it doesn’t have to pull as well to justify itself. But sometimes adding more words can help your sales, too. It doesn’t hurt to experiment.
How much profit do you need to make on classifieds? Unless you’re running a one-product, one-sale business, you can build a profitable operation through classifieds just by breaking even, or even by coming in a little under the money since many of those buyers will become your repeat customers.

Co-Op Advertising

How can small retailers or distributors maintain a high profile without spending lots of money? One answer is co-op advertising.
Co-op advertising is a cooperative advertising effort between suppliers and retailers—such as between a soda company and a convenience store that advertises the company’s products.
COUPON CUTTERS
If you want to attract and keep customers, you need to offer an incentive. A coupon for a free sample or service or a discount on your normal prices can be just the nudge a customer needs to try your new business. Coupons help you achieve many goals: introducing a new product or service, increasing repeat business, beating the competition and more.
 
One of the most powerful ways to use coupons is through direct mail. This method is especially good for occasions such as grand openings or new product/service introductions. How to make the most of your direct-mail coupon campaign? Keep these tips in mind:
• Coupons can be offered as a “Thank you for buying from us” or a “Stop by and try us” message.
• A coupon can be a single item for a one-shot promotion or used in combination with other offers.
• The value must be substantial enough to make it worthwhile. Better to err on the side of giving too big a discount than to seem cheap.
• Use coupon promotions sparingly. They wear themselves out if overused.
• Be clear. State exactly what the offer is, how long it lasts and the terms of redemption.
• Color-code your coupons if a variety of groups will receive them. For example, if you’re mailing to six ZIP codes, color-code them differently so you know how many were redeemed from each area.
The newest way to distribute coupons: on the internet. Add a registration box to the main page of your website so people can sign up to receive coupons. This way, you can build a permission-based e-mail list of people who want to receive ongoing offers and rewards. Or consider using a web coupon service, which offers coupons in booklets by mail or online for consumers to download and print out themselves.
Both retailers and suppliers benefit: retailers because co-op advertising increases the amount of money they can spend on ads, and suppliers through increased local exposure and better sales.
Although each manufacturer or supplier that uses co-op advertising sets up its own individual program, all co-op programs run on the same basic premise. The retailer or distributor builds a fund (called accrual) based on the amount of purchases made by the supplier. Then, when the retailer or distributor places ads featuring that supplier’s products, the supplier reimburses all or part of the cost of the ad, up to the amount accrued.
To start using co-op advertising, begin by asking your suppliers what co-op programs they offer. Follow their rules to be sure you get reimbursed. Some suppliers require that ads feature only their products, not any other supplier’s. Others ask that no competing products be included.
Though procedures may vary, there are three basic steps to filing a claim for reimbursement. First, show “proof of performance.” For print ads, this is just a copy of the ad exactly as it was printed. If you buy TV or radio ads, you’ll need a copy of the script with station affidavits of the dates and times aired.
Next, document the cost of the advertising—usually with copies of applicable invoices from the publication or station where you ran the ad. Third, fill out and submit a claim form, which you can get from the supplier.
Other steps to make the most of co-op advertising:
• Keep careful records of how much you have purchased from each supplier.
• If you try something unusual, such as a sales video or a catalog, get prior approval from each vendor before proceeding.
• If you’re preparing your own ads, work with an advertising professional to prepare an ad you think will appeal to the manufacturer. Keep in mind the image the manufacturer presents in its own ads.
• Make sure your company’s name stands out in the ad. Your goal is not so much to sell the supplier’s product but to get customers into your store.
• If there’s no established co-op program, pitch your ad campaign to the vendor anyway.
• Expect vendors to help out; after all, you’re bringing them business. If your vendor doesn’t offer advertising co-op money, you should look for another vendor that does.
• Be sure to follow up. Money goes only to those who submit claims.
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TIP
Your marketing plan is an ongoing process. Market conditions change. Some of tomorrow’s challenges you can predict today, while others you can never anticipate. You should take a look at your plan at least every three months and on a formal basis every six months. If you aren’t on track, why not? Has your thinking changed or has the market thrown you a curve?

Measuring Advertising Effectiveness

Just as important as creating a strong marketing plan is following through on the results. How will you know which ads are working if you don’t analyze the results? Check the effectiveness of your advertising programs regularly by conducting one or more of the following tests:
Run the same ad in two different publications with a different identifying mark on each one. Ask customers to clip the ad and bring it in for a discount or a free sample. Or, if you are running an ad that asks customers to order by mail, put a code in your company address such as “Dept. SI.” By looking at the marks on the clipped ads or the addresses on the mail-in orders, you’ll be able to tell which ad pulled better.
Train everyone in your company who answers the phone to ask customers where they heard about you. Create a one-page form with checkboxes so this process is simple to follow and the results are easy to evaluate. Just bear in mind that customers will sometimes get it wrong—they may say they saw you on TV when you don’t run a TV campaign. But overall, asking for this information will be valuable.
Offer a product at different prices in different magazines. This has the added benefit of showing whether consumers will buy your product at a higher price.
Advertise an item in one ad only. Don’t have any signs or otherwise promote the item in your store or business. Then count the calls, sales or special requests for that item. If you get calls, you’ll know the ad is working.
Stop running an ad that you regularly run. See if dropping the ad affects sales.
Always check sales results. This is especially important when you place an ad for the first time.
“No person can get
very far in life working
40 hours a week.”
—J. WILLARD MARRIOTT,
FOUNDER OF MARRIOTT
INTERNATIONAL INC.
Checks like these will give you some idea of how your advertising and marketing program is working. Be aware, however, that you can’t expect immediate results from an ad. Advertising consistently is important, especially if you run small-space ads, which are less likely to be seen and remembered than larger ads.
One study showed that attention to an ad is significantly impacted by its size—in fact, a 1 percent increase in ad size leads to the same percentage increase in attention. You must also run your ad in multiple issues (at least three) before readers will notice your ad and buy what you’re selling.
Advertising Checklist
Overview
• Have you defined your advertising objectives and written them down?
• Have you developed an advertising strategy?
• What exactly do you want to communicate to your potential customers?
• Are you communicating buyer benefits?
• Is the timing right?
• Do you have a planned advertising budget?
• Are you prepared for a successful response?
• Have you asked suppliers about cooperative programs?
• Have you made sure that employees (if any) are informed of your goals?
• Have all appropriate employees been familiarized with your advertising and trained how to respond to customers?
• What is your lead time for ad placement? Some newspapers require only a few days; some magazines require two months or longer.
• How will you measure the effectiveness of your ad?
Specifics
• Does your ad present a central idea or theme?
• Does your message require a response?
• Have you told customers where and how to reach you?
• Is your ad clear and concise?
• Is your ad consistent with your desired business image?
Files
• Are you keeping files on all aspects of each ad?
Advertising Checklist, continued
• Where did the ad run? What were the results? (Number of sales? Sales increases?)
• Have you reflected/brainstormed/evaluated?
• What variables (the economy, competition, etc.) have you targeted for further study?
Competitors and Customers
• Are you watching competitors? (If advertisers repeat ads, try to determine why.)
• Are you listening to your customers? What do they want? What’s important to them?
• Which media are most cost-effective for reaching your customers?
Evaluate an ad’s cost-effectiveness, too. Consider the CPM. A cheaper ad is no bargain if it doesn’t reach many of your prospects.