One Minute Marketing Ideas

How Much Should A Small Business Spend On Advertising?

How much is your advertising budget?
What’s that? You don’t have an specified budget. Not a good idea. Whether you are a new business or an established one, in order to maintain sales and continue to grow your business, you need to advertise.

Unless of course, you have a great reputation, consistent product or service delivery, fantastic location and affordable pricing. Right? That is why you never see McDonald’s advertising. Wait a minute, that’s wrong. They do advertise. Ask yourself, what if McDonald’s stopped advertising. Would they still be number 1 five years from now? I think we all know the answer to that one.

So how does a small business determine how much to spend on advertising?
There are many ways to go about establishing an advertising budget, some more complicated than others. Here is a list of the most common:

• • • • Percentage of Sales
      • Objectives
      • Industry Comparison
      • Market Share
      • Unit Sales
      • Available Funds

Available Funds Budget
I’ve been working with small business owners for years and from my experience, the most popular method is “Available Funds”.  Is that a good idea?

Here is a great quote from SCORE: “Often, small businesses estimate their sales revenue, cost-of-goods, overhead and salaries, and then gross profit. Anything left is considered available funds for marketing support. That’s not such a good idea. … If you are the new competitor in the marketplace, you will have to spend more aggressively to establish your market share objective.”(To read the complete article from SCORE – CLICK HERE).

Percentage of Sales Budget
I think the easiest method for determining an advertising budget is the “Percentage of Sales Budget”. Most experts recommend anywhere from 4% to 10% of sales. The percentage should probably be lower if you are renting premium space for your business versus a home based business or one located in a warehouse district. There are other factors and plenty of formulas out there, I recommend starting somewhere in the middle, say 6% and then adjusting higher or lower as needed.

If your advertising is successful, and sales increase, this method offers the ability to grow your business. More sales results in a bigger budget, which results in more sales, which results in a bigger budget, etc.

Here’s one method that is not on the list above. I call it “The Comfort Level Budget”.
For small businesses currently without a specified advertising budget, finding the fiscal discipline to allocate funds for advertising every month will be difficult. Remember the old saying, “…every journey begins with the first step”. The important thing is to take the first step and establish a small budget, even a very modest one, and then be consistent.

The danger with this approach is that small budgets usually yield small results. Owners or mangers can get discouraged. One must be committed and gradually increase the budget until results are measurable.

A final thought. There is more homework to do.
It’s great to become an advertising budget expert and allocate funds to grow your business. However, at the same time, you have got to become an advertising expert too. A budget is important, but if you are spending funds on advertising that isn’t working, you’ve got a problem. Results must be measurable. Learn as much as you can and rely on expert advise from media representatives.

In the end, no one knows your business better than you do. You know your cash flow and profit margins. You are in the best position to measure the results of your advertising. Start growing your business today. How much is your budget?

Is who brings in the mail, a factor to consider, in direct mail advertising?

EVERYONE LOOKS AT THEIR MAIL, ALL OF IT, USUALLY EVERY DAY
One of the great advantages of Direct Mail Advertising is that it is one of the only media options that is guaranteed to reach the prospect. Think about it, newspapers are losing circulation, television and radio require a huge budget for real market penetration and outdoor advertising (billboards) is hit or miss. But, everyone looks at their mail, all of it, usually every day.

IS YOUR PROSPECT A MAN, A WOMAN OR EITHER ONE?
If you have decided to use Direct Mail to promote your business, the first step is to create a message that will attract the attention of your prospect. Is your prospect a man, a woman or perhaps either one? The other day someone on our team raised the question. When creating a message, should we consider who is bring in the mail? Is it the man or lady of the house? Perhaps it’s the kids. It could even be on a  first come, first served basis, who ever gets home first that day.

WHO BRINGS IN THE MAIL? LET’S FIND OUT!
Interesting, I thought, let’s take a poll and gather some answers.
So we invite you to CLICK  TO VOTE in our poll. Before you vote and look at the results, who do you think brings in the mail in most homes?

DOES IT REALLY MATTER?
We took a quick survey around the office and found out that the answer to, who brings in the mail, was pretty evenly divided among the four choices offered.  I suspect that will be the result of our poll too. So, is this information helpful. Not very. The results are interesting, in a trivia kind of way, but they really should not affect the messaging on your direct mail piece.

SPEAK DIRECTLY TO THE PROSPECT YOU ARE TRYING TO REACH
We stand by our tried and true method of speaking directly to the target profile. It works, we do it every day. If you want to know how and why, read our Feb 6, 2011 Blog Posting “Why Speak To One Instead Of Many?”
CLICK HERE to read it.

What can a famous WW II General teach us about advertising?

Many of you keep thinking about launching a Direct Mail or other Advertising Campaign but for some reason keep putting it off. Could it be that you are waiting until you can find the time to fine tune your plan and make it perfect? When will you find that extra time?

“A good plan violently executed today, is better than a perfect plan executed next week.” – that quote from General George S. Patton inspires me nearly every day.

In the current economy, procrastination can be a recipe for disaster. You have got to work harder than ever just to maintain market share let alone grow your business. However, smart business owners know that there are opportunities during strong or weak economic times. Advertising can help you exploit those opportunities.

What’s that old saying, “…if you keeping doing the same things over and over again, you are going to keep getting the same results!”.

Do something different this week. Advertise.

Are You Flattering Your Competitors?

IS FLATTERING YOUR COMPETITION A GOOD IDEA?
You know the old saying: “Imitation is the highest form of flattery”. Every week I talk to dozens of imitators. Small business owners, who don’t realize they are flattering their competition. Chiropractors, pizza shop owners, lawn service operators, owners of just about every type of business you can imagine. Honest, hardworking and hopeful.

IF THEY ARE DOING IT, IT MUST BE WORKING. RIGHT?
They call us, ready to grow their business with a direct mail advertising campaign. For many of them, it’s their first mailing and they are full of optimism. When we get down to discussing a message and special offers, they often rely on what they have seen others do. If most of the competition is doing it, it must work. Right?  The problem is, the competition’s advertising may not be working so good, in fact, it may not be working at all.

THIS IS NOT JUST ABOUT ADVERTISING. IT’S ABOUT MAKING YOUR BUSINESS A SUCCESS!
The idea of imitating the competition goes beyond advertising. It’s a factor that is fundamental to the ultimate success of a business. It’s the difference between just getting by and doing great. We are talking about defining a “Claim To Fame”. Something that separates a business from their competition. It’s a chance to break away from the pack of competitors that are hard to tell apart. Once a business is  separated from the rest, it starts to move to the next level of sales and profitability.

HERE’S A JOKE ABOUT OWNING A SMALL BUSINESS.
Two friends are talking. One says to the other. “You are so lucky to have your own business!” The business owner thinks for a moment and replies: “Yes, it’s great. I get to work half days, and as the owner, I get to pick which 12 hours I want to work!”

Sound familiar? Are you tired of working hard and finding yourself in the same place month after month?

If you really want to grow your business into a successful operation, work on creating a “Claim To Fame”. Don’t be discouraged if you can’t come up with something right off the bat. If you ask many small business owners to tell you their “Claim To Fame”, most would be at a loss.

WANT A FREE OPINION?  SEND US YOUR CLAIM TO FAME.
Want to brain storm? Send us your “Claim to Fame” and we’ll give you our honest opinion on how it measures up with others in your industry located around the country. No obligation or sales pressure. CLICK HERE.

What type of special offers generate the most response?

AT THE END OF THIS ARTICLE YOU WILL HAVE A CHANCE TO VOTE
Your experience as a business person and consumer is valuable. Share it by voting in our anonymous poll. Click the link at the bottom of this blog to cast your vote on which type of special offers work best. The results are updated in real time. So check back in a day or so and compare the most popular tactics with your own.

WHAT KIND OF RESPONSE WILL I GET?
Everyday I speak to small business owners all over the U.S.A about Direct Mail Advertising. What question do I get asked the most? By a margin of more than 2 to 1, the most asked question is: “What kind of response will I get?”. I always give the same answer:  ”….it depends on the strength of your Magnet”.

WHAT’S A MAGNET?
“Magnet” is the term we use to describe the lure, hook, special offer or incentive that will motivate the prospects you are targeting to respond to your advertising. Yes, it’s the bait that is most important when you are fishing for new customers.

THE MAGNET IS IMPORTANT… SO TEST IT
The Magnet is probably the most important factor influencing the success of a direct mail campaign. So how do you know if your Magnet is strong enough? It’s not rocket science. Test it. Show it to your family, friends, employees and even a few loyal customers. Look them in the eye. Tell them to be honest. And listen.

PEOPLE LOVE TO SAVE MONEY, SO GIVEN THEM A DISCOUNT
Discounts are probably the most common Magnet used in advertising. You can minimize lost revenue from discounts by limiting them to time periods when business is slow or to new customers only (but don’t forget to reward your loyal customers from time to time).

The way discounts are presented can make a big difference in the response generated. When using percentages, always give a reference price point. You may think 10% OFF is a great offer, but the prospect is thinking “10% OFF What?”. Are you afraid to show your prices? If so, why? (and don’t say because your product or service is too complicated) If you are advertising a great offer, make it big and bold and easy to understand.

DISCOUNTS ARE GOOD, BUT THERE ARE OTHER TYPES OF MAGNETS
In this economy, that last thing you probably want to do is cut your prices. So here are some other ideas.

• A Unique, Interesting or One of a Kind Product of Service
  A pizza shop advertising their “Famous Upside Down Pizza” (are you curious?)
• A Donation To A Worthy Cause
  We had a propane provider purchase a helmet liner for solders in Iraq and Afghanistan with every fill up.
• A FREE In Home Estimate
  More valuable today than ever. I remodeled my kitchen recently and went to Lowe’s Home Improvement. I was surprised when I was told that I would have to pay for an in home estimate (that would be applied to my purchase) until they explained how much time was involved measuring and going over options. So if a Free Estimate is your Magnet, make sure you describe what’s involved and perhaps even put a dollar value on it.

SO HOW STRONG IS YOUR MAGNET?
If you are not getting the results you want from your advertising, take a look at your Magnet, some fine tuning may be in order. Resist the impulse to do what everyone else is doing. Run-of-the-mill Magnets will generate mediocre results. So be creative, generous and aggressive.

SHARE YOUR OPINION ON WHAT WORKS BEST
Take our poll (takes less than a minute) and see what business owners around the country think about using Magnets in their advertising. CLICK HERE!

Start Using QR Codes, They’re The Next “BIG Thing” In Advertising

MY WIFE RENEWED HER WIRELESS PHONE CONTRACT LAST MONTH
My wife’s cell phone contract came up for renewal last month, so it was time to shop for a new plan and phone. Up to this point she was content with the call features, the ability to keep in touch with family and friends using texts and taking the occasional photo with the built in camera.

YOU DON’T KNOW YOU NEED IT, UNTIL SOMEONE SHOWS YOU, YOU CAN’T LIVE WITHOUT IT!
She wasn’t looking for the latest and greatest in technology. She has a laptop, but never thought she would need to go online with her phone. Didn’t matter. Remember that old saying,: “Necessity Is The Mother Of Invention”? Well, I’m convinced that in this day and age, we can change that to: “Invention Is The Mother Of Necessity”! In other words you don’t know you need it until someone shows you, you can’t live without it. You guessed it, the smart phone has arrived and the way the plans are priced, by the time you sign on the dotted line, you’ve got a phone that, in many cases, is faster and can do more than your old desk top computer at home.

IT DIDN’T TAKE LONG FOR HER TO DISCOVER QR CODES
What are QR Codes?

They look like this:

They come to us from Japan where they are very common. QR is short for Quick Response (they can be read quickly by a cell phone). They are basically a bar code, but can store much more data. Many cell phones today come with built in readers. QR readers can also be downloaded for free.

Back to my wife’s QR discovery moment. She’s at the store looking at some towels. She spots a QR Code on the tag which says, “Scan With Your Phone”. She does. Instantly she gets more information than anyone  should need to make a towel purchase, and in the process gets hooked!

IF QR CODES ARE THE NEXT BIG THING, MY CLIENTS SHOULD BE USING THEM, NOW!
With more and more smart phones being introduced, it won’t be long before QR Codes are everywhere. So don’t wait. You can create a QR Codes for free online.  Give it a try at this link:  http://goqr.me/ .

Here are a few example of how businesses are using QR Codes:

1. Business Cards – A QR Code can create a vCard when scanned including phone numbers, web address, email etc.
2. Postcards & Door Hangers – Someone reading  a postcard or door hanger, doesn’t have to be at his computer to view a website. Another benefit, is that the QR Code can be saved on the phone. Now URL addresses that are long or hard to spell can be loaded with the touch of a button.
3. Storefront Window – Some restaurants have a QR Code hanging in their window with a quick link to a menu or daily specials. (QR Codes can be any size – some advertisers are using them on billboards)
4. Coupons –  Advertise the QR Code of a webpage containing special offers that are updated regularly.
5. Videos – Links to videos on You Tube or a website can be launched instantly.

Envelopes, stationery, brochures, T-shirts, signs – your imagination is the limit.

Even if you are not the most “tech savvy” individual,  using QR Codes will impress those that are and peak the curiosity of those that aren’t.

By the way, the QR Code in this Blog happens to be the web address on our Blog. If you have a smart phone, I hope you will scan it.

Don’t Get Mad At Price Shoppers!

THANKS, I’LL GET BACK TO YOU
Most shoppers are looking for the best price. No one wants to pay too much. But unless they enjoy shopping, most folks would rather be doing something else. The truth is, prices for most products and services are pretty much the same from one company to another. Yet, how many times have you presented your product or service to a prospect only to be told, “thanks, I’ll get back to you”. As we all know, that’s code for let me check around for a better price.

WHY DIDN’T YOU GIVE ME THAT PRICE TO BEGIN WITH?
In frustration, I have seen many business owners advertise “WE’LL BEAT ANY PRICE BY 5% OR MORE!”. Does that tactic ever work? Are prospects going to spend time getting written estimates to present to you so you can beat someone else’s price? Or will they think to themselves, why didn’t you give me this price to begin with?

HAVE YOU BEEN SHOPPING?
Why not confront the price issue head on? Ask the prospect: “Have You Been Shopping?”

If he answers: “YES”
Then ask him “How does my price compare?” If your price is much higher there can be 2 reasons:
1- The prospect is not comparing “apples with apples” and you’ve got an opportunity to straighten him out.
2- Your prices really are higher. If so you better address that fact.

If he answers: “NO”
Assume that he is going to.  You should inform the prospect that most reputable providers of your product or service have very similar prices and that he shouldn’t make his choice based on price alone.

IF NOT PRICE, THEN WHAT?
With either of the above answers, you need to finish your presentation with the reason that the client should do business with you. Your “Claim To Fame” or whatever makes your offering unique and better than the competition.

If you can’t define what makes you better than the rest,  in real terms, then you may be doomed to suffer the horrible fate of always being at the mercy of those price shoppers.

DON’T GET MAD, CHANGE THE SUBJECT
By the way, don’t get upset with price shoppers. Chance are you are a price shopper too. Everyone starts out comparing prices until someone challenges that notion and gets them to compare features and benefits.

HERE’S HOW WE HANDLE “SHOPPERS”
We try to get prospects to go to this page on our website – it addresses the price issue. Check it out: CLICK HERE

When Advertising… Why Speak To One Instead Of Many?

I was watching TV the other night and a commercial came on for a local dentist. Nothing fancy, it showed the dentist speaking to the viewers. “Are you tired of loose dentures?” he asked.  Then he continued: “I can turn those loose dentures into a permanent bridge in just one day”.

You might be thinking, okay, what is so remarkable about that TV commercial? If you saw it, you probably wouldn’t have remembered it. Well, I think it was terrific, the perfect example of how speaking to one person instead of many can result in an ad that really delivers results.

He spoke to a “Target Profile” instead of a “Target Audience”. What is the difference? Let’s define both starting with the Target Audience. The Target Audience includes everyone within the range of the television commercial who cares about good oral hygiene. That’s a lot of people. Including those of different age or economic groups. It would also include folks with different dental problems and even those with healthy teeth. A commercial that appeals to all of them will have to be pretty broad based and not specific.

Now let’s evaluate the commercial I saw that focused on a Target Profile. The dentist was speaking to someone who wears dentures, someone who has problems with his dentures, someone who is probably older, someone who probably can’t afford a more expensive solution like dental implants and someone who is ready to switch to a new dentist. It’s almost as though the TV spot was written for one patient instead of everybody. It was. That’s the way to create an effect advertisement.

In reality there are probably lots of others who share the specific problem outlined in the commercial. Maybe 10% of the total number watching the commercial. How about the other 90%? The other 90% of the viewers won’t be interested. The good news is that the total audience is this case was probably about 175,000 local viewers (a popular show on a cable channel), so 10% means 17,500 prospects. The dentist only needs a small percentage of that “Target Profile” to generate more business than he can handle.

Let’s review. The dentist could have produced a generic ad, containing a laundry list of services that would have spoken to his entire target audience. In doing so he would have come across looking like hundreds of other dentists in the area. Instead, he made his practice unique by targeting a specific client profile and creating a TV spot that was very compelling to that profile.

The same approach can be used with direct mail or any other media you may be considering. What is your niche? Define it and then “Speak to One Instead of Many”.

Are You Ready To Commit?

In the current economy, many business owners are wondering what to do to maintain and hopefully increase sales. The obvious solution is to advertise. Even some established businesses that have relied on word or mouth or reputation in the past, are considering some type of an advertising campaign. If you are one of them, regardless what media you choose, there is one word you should remember: “COMMITMENT”.

Remember, most advertising media works. TV, radio, direct mail, newspapers, billboards, door hangers, etc may be new methods of advertising for your business, but they have been proven effective for thousands of others. Of course, some media choices for your particular business are better than others. You’ve got to do some research, evaluate costs and your budget, and then make a choice. Chances are you will make the right one.

Choosing which media to use is only the first step. After you launch your campaign, you have to evaluate the “R O I” (Return On Investment). Yes, advertising is an investment, and like many investments, it may take a little time for your investment to pay off. True, sometimes, advertising may seem more like a visit to a casino. You make a bet and once in a while luck is on your side. Smart businessmen try to avoid that hit and miss cycle.

So what is the answer? Commitment! Stick with it. Advertising is hard. It is a process. You have to advertise, carefully evaluate the results, fine tune your campaign and then try it again. That is the hard part. It may seem as though you are putting good money after bad.  But remember, it is an “investment”. Don’t cut your losses and run after just one try. Even if no one responds to your advertising, that is still a result. Obviously not the result you were hoping for, but a result just the same. Poor or no response can reveal things about your prices, your competition even your reputation if you are honest with yourself.

A last word caution. When shopping for advertising (or anything else for that matter) don’t use price as your only consideration. If you are not an expert in the field, then find a supplier that can educate you as well as provide the product or service you are seeking. Getting the right advice can be priceless!

Mailing List Ideas: Target New Homeowners

Moving is unpleasant for everybody! You have boxes all over, closing papers to sign, you do not know anybody, and to top it all off, you must find a provider for all of the services that you need, such as:

• Family doctor
• Dentist
• Lawn and landscaping company
• Pool cleaning service
• House cleaning service
• Day Care
• Handyman
• Church

Be the first in front of the residents in your area!

New home owners and new movers are great prospects for many services. The new home owners list is compiled from public records of people who have bought a home in the last six months. New movers is a list of people who have just moved into the area in the last six months and includes renters as well as new home owners.

When targeting new homeowners, a good idea is to design your postcard as “Welcome to the Neighborhood” postcard.  It’s nice to feel welcomed and will increase your overall return on investment (ROI) on your campaign.