High Octane Marketing

Chapter 2

High Octane Marketing

Objectives

• After going through this chapter you will be able to understand:– Why and how to fine tune your operation?

– How to get better of others?

– The work is your life and it is fun

– The importance of setting goals and

– What is mastermind group?

19 ways to supercharge your sales: High Octane 1

How to make your imagination a reality

• You have to think about buying a customer as you buy a commodity

• You have to keep on buying customers on a regular basis



• You spend a lot of money on advertizingsending direct individual mails, telephone calls etc. for marketing of your product

• One should not think of expenditure on attracting customers towards his business



• There is one more reason for they getting satisfied with one sale per customer –Complacency



• If you are selling only a single brand of product then it is high time that you look for incorporating a value added aspect to that product



• The idea of value addition need not necessarily be adhered to electronic products only



• Be ready with your additional offer at the time of your very first sale

• Keep in mind:– Never develop the front-end without building up

the back-end also then keep the chain reaction of sales stretching as long as you can!


Concentrate on the Best Customers

• The computer is playing the vital role in today’s various business activities

• Almost all the retail shops, supermarkets etc. have installed the computers



• With installation of the computer the data like –– The customers who visited more often

– Who go for costly items

– Those making frequent visit and poor buying etc.

can be retrieved



• Concentrate your advertizing and marketing efforts on good section of customers and drop or spend less on bad lot of customers



• Your computer data show not only how much certain customers spend but also what they like to buy the most



• For Example– Consider a grocery shop

– Sometimes the grocer puts certain items on a sale to make low profit from on them



• If your computer data is well maintained, it will show you who step in your shop to buy the high profit items most often



• For example:– Mail a good customer a coupon along with your

leaflet

– This would generate a unique feeling in them and would jump on the offer without any hesitation


Standing on the Shoulders of Giants

• The world has seen man a lot of very intelligent personalities

• Newton possessed the most monstrous brain power



• If you want to achieve something in your life, you follow what Newton did – stand on the shoulders of the giants

• A simple calculation will get you what the lifetime value of customer is



• The work out is very simple– Imagine a new customer comes into your shop

and buys Rs. 1,000 worth of products

– If he keeps on visiting and effective purchase of about Rs. 5,000 on an average of three years then you make a business of Rs. 15,000



• The work out is very simple– So, Rs. 5,000 is average profit

• This is a blind shotgun method which may or may not be a viable proposition



• Once you are able to assess the exact worth of a particular customer you can plan your marketing strategies in a broader spectrum



• You are likely to attract many more times, say four to five times a customers as before resulting into a lot more business and much coming into your pocket



• Process to evaluate the lifetime value of a customer– Observe your business data and find out a what

customer buys and the amount he spends

– Find your net profit on each customer



• Process to evaluate the lifetime value of a customer– This evaluation is possible only if you collect the

correct sales data for each of your valid customers

– Calculate the average monetary worth of your customer


Your Unique Selling Schemes

• Whatever may be your business, you have competitors close by

• The buyer need not choose to buy from you, he may buy from your competitor also



• There are two things are to be done to make the switch over effectively– Develop a unique selling scheme

– Make sure your prospective customers notice the proposition



• How to develop a unique selling scheme?– If you advertize loud and clear people will get the

idea o your product

– Free delivery is a unique selling scheme



• How to develop a unique selling scheme?– Use car dealers complete for grabbing major

share of the market

– There is little to lose whereas much to gain



• How to develop a unique selling scheme?– Write down each and every benefit and quality of

your product and compare them with your competitor’s

– You have to make know the customers that you have something special to offer


Be Different in Positioning

• The another way to of keeping you outstanding is ‘Positioning yourself as an expert in your field of activity’

• People do not care to pay a little more for an expert


Be Different in Positioning

• Write a book about the virtues of a particular product and distribute it in your area

• You can attend public for a and debates

• Publish your own newsletters and distribute it freely to your customers


Endorsement – A Flood of New Business

• People go through an advertisement with a prejudiced mindset

• When there is a well known personality to endorse your product it will be far better than a full page color ad



• The key is to get other people endorse your product for you

• There are two different ways:– You may ask your friend customers to

recommend your product among their friends



• The other way is to get a third-party endorsement from a non-competing business owner, or celebrity

• They may prove highly expensive


Direct Mail

• Direct mail is the best marketing tool as you can reach thousands very fast and for lesser cost than any other instrument


Direct Mail

• You may be rightly apprehensive that the direct mail is treated as junk by vast majority of the recipients

• Some of them will not bother to open the cover and have a look at the contents


Direct Mail

• For example– Let us say your Rs. 2,000 worth of product really

cost costs you Rs.700

– This means your cost towards the product is 100X700 = Rs. 70,000


Direct Mail

• For example– Take the case of the book ‘How to Fight Cancer

and Win’

– First, the publisher test marketed a direct mail piece and got a response rate of about 20%


Direct Mail

• For example– Copy Writing: Not any Peter, Dick and Harry can

create a direct mailing material

– It should be noted that the list of customers sending direct mail must contain only the selected ones


Free Advertisement with Multiple Out-pull

• There are a certain kinds of advertisements that come entirely free and without any stigma attached with it

• You have to come up with a newsworthy angle to your service



• How to get newsworthy angle?– Be creative and you get a sense of what makes

news and accordingly you make some news happen

– You have to be innovative and imaginary



• Free advertisements acts as a compelling factor for the customers to try your product leading to a massive influx of new customers and money as well



• Issuing press releases is another method of creating public awareness

• Work hard to get this angle to your business


Do it Fast – Tomorrow is Too Late

• Time is more than anything else

• The money we spend is gone as the time we spend

• Time and money are intimately bound with each other



• In the World, noting is valuable than the Time

• You will be astonished to see that you really spend only a fraction of your time in money making



• Two reasons for people wasting money– They do not think of the fact that time is money

– They are simply careless



• Once you are aware that every moment is precious, you will withdraw yourself from wasting time any more

• Each one of us is allotted with a certain fixed time on this Earth


Remove the Risk Factor

• It is the fact that all buyers have several reasons for not buying a certain product

• The perfect business persons have ready remedy with them to counter these allegations



• Do not think literally that the buyer will come back for pay-back

• Each new customer costs you money but each repeat sale comes free if cost



• When you remove the hurdle of risk from your products, the sales boost up in multiples without spending for ads and marketing



• The stronger you make the guarantee, the better it is

• Stronger the risk removal factor, better your sales prospects


An Ad Five Times More Effective

• An ad contains many a variables which interact unpredictably due to its natural instinct

• Nobody can predict about an ad



• There is always an element of risk in advertising effort

• An ad has to hit the market at the right time



• There is no scientific formula that can guarantee a total success in an advertizingcampaign

• Sometimes even the first run may be successful



• Many times slight change in wording of headline or an alternative offer get changed in the body matter can alter the situation favorably



• It’s quite advisable to test and change your ad very often

• No doubt, changing an ad very often is quite expensive, but when it pulls high response you will reap the rewards as well


Learn from the Farmer

• If you ask a prospective farmer how he is doing in his harvest, he will place before you all the factors for which he had spent



• The exciting market area is the business ‘acreage’ for a businessman

• You can easily make out, on a close observation that a majority of your business comes from an area that falls within four to six kilometers of area



• There are two ways to improve your yield per acre:– You can increase your market share by getting

more of those 20,000 to come in and be your customer

– You can get more business from those 7.5% you have already captured



• Take a look at what you are doing to get your usual 7.5 yield

• Many of them may turn out to be casual step-in



• Make a big offer of give something entirely free on a certain amount of purchase

• Think and do what a farmer does


Looking Out for Common Traits

• You have to concentrate your efforts on a carefully chosen group of customers, which is called as ‘target marketing’


Looking Out for Common Traits

• Catch the very best and qualified targets

• For any trade, there is a publication related with it, providing information about that industry


No Problem if Your Customer has No Money

• Is a customer says he really needs your product but he does not have a money right now, do not hesitate

• You tell him to take the product right away paying whatever he could and the rest he can pay on easy installments


No Problem if Your Customer has No Money

• ‘No Money’ road block is most common excuse but at the same time one of the best overcome

• It is proven fact that many businessmen have tried this and succeed enormously


Go Ahead and Break It

• The top ranking insurance salesman, Sid Friedman, said “ If it isn't broke, brake it”

• You should always strive to lead making others to play ‘catch up’ with you



• Differentiation is a business term

• If you cannot make any significant change in the product atleast change the package



• Not all your differentiation effort may click

• What you learn from this experience is that you must be prepared to face certain risk while going with your differentiation formula

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• Example:– A photographer came out with a novel offer of

providing glamour photos

– Most of the petrol pumps switched over to self service


They Go Away Quietly

• Very often you don’t know what happens when you annoy your customer

• A satisfied customer will not hesitate to open up himself and present a rosy picture of you and your product


They Go Away Quietly

• One of the best thing to attract a repeat business is to resolve customer problems in their favor even if it costs you a little bit

• Does not be a penny-wise if you are going to be pound foolish later


Value Added Attachment

• The customer will happy to get something for which they don’t pay

• It will be much appreciable to gif something connected with the item customer buys


Value Added Attachment

• For Example:– Polish or a brush as a gift for every purchase of a

pair of shoes

– A shampoo as a gift for a lady, comes in Spa for hair coloring


How to Make Shoppers into Buyers?

• After spending a lot on advertisements and other marketing techniques if people come into your shop and went out without making any significant purchase it would be shame no if a tragedy



• A customer is happy to stay more if he meets inviting looks and atmosphere

• Displaying your guarantee prominently is another way to make the customer to settle down



• If you take a survey of a particular likes of people by way of giving out forms to fill in and ask them to come in for a discount

• Capture all relevant information regarding the customers as much as possible



• Another method is to give customers an immediate incentive to come back and buy again

• The magic words ‘Thank You’ really are capable of mesmerizing prospective customers


Difference Being 1st and 2nd

• A margin between 1st and 2nd may ne narrow but the power and fame go with the first while the second is being pushed into obligation


Difference Being 1st and 2nd

• The second and third in the line are forgotten and nobody cares to know even

• There are many examples where the number two had acquire more fame with staunch publicity

Summary

• To run your daily business, you have to buy customers like a commodity

• It is mandatory for a successful businessman to keep a record of purchasing behavior of all customers

Summary

• Try to acquire a unique selling proposition

• Position yourself as an expert in your field which can be done through calculated publicity tactics

Summary

• Making a list of good and regular customers by collecting and storing a vital data on a computers will help you to send direct mail

• Time is money, nothing is more important than the time

Summary

• All buyers have a dozen of reasons for not to buy, such as– Cost is too much

– Not sure of quality

• Two basic ways to improve sales:– Increase your market share

– Increase your area of operation

Summary

• Do not leave out a customer who does not have sufficient money right now. Offer them a monthly installment paying

• If your customer likes you and trust you then you need not compete on the basis of price

Summary

• Getting something free which a customer did not expect makes him baffled and surprised

• Thank customer profusely for his visit and purchasing your product so as to make the customer to repeat

End of Chapter 2

High Octane Marketing

High Octane Marketing

Education

Transcript of High Octane Marketing