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Everything you ever wanted to know about your customers--from your customers
By Gwen Moran | Entrepreneur Magazine - February 2000
URL: http://www.entrepreneur.com/marketing/marketresearch/article19070.html
When it comes to promoting your business, knowledge is power. The more you know
about your market, customers, competition and prospects, the more likely you are
to make smart decisions. So why do so many small businesses ignore the power of
even the most basic market research?
According to Paul Richards, president of Castle Hill Consulting, a Morris Plains
, New Jersey-based market research and consulting firm, many entrepreneurs think
research is either too expensive or can't tell them anything new. Richards main
tains that varying degrees of market research are available to even the smallest
businesses--and those that avail themselves of such information maximize succes
s.
Fundamentally, two types of research exist: quantitative and qualitative. Quanti
tative research answers basic questions--who, what, when, where, how many, how m
uch and how often--using statistical analysis to draw conclusions. Quantitative
studies can benchmark awareness levels for your company, brand, product or compe
tition, and give you a glimpse of what your customers, prospects and other audie
nces think of each. Qualitative research, on the other hand, is designed to answ
er questions such as "why" and "how." These studies are used to guide product an
d service development as well as the development of marketing programs.
A number of research mechanisms can give small businesses valuable information.
Some of the most effective are:
Interviews: They should be done by phone or in person by a trained person. The r
esults, hypothetically, should not be biased by preconceptions, emotional attach
ments or business pressures.
Surveys: These are generally conducted by mail. It's important to pay attention
to how the survey is worded to ensure that biased language doesn't influence the
results.
Focus groups: Focus groups range in size but are most effective with between eig
ht and 12 participants. Led by a moderator, they're used to encourage free and o
pen discussion. Although focus groups can reveal helpful information, they are v
ulnerable to the dynamics of the group. A participant with a dominant personalit
y or the perception of a moderator's bias can seriously influence results. There
fore, be sure you hire a trained moderator who has experience in, or a thorough
understanding of your field. (For more information on focus groups, see "Marketi
ng Smarts" in our June 1999 issue.)
Online focus groups: Some of the larger chat-based Web sites offer low-priced on
line focus group opportunities. Online chat sessions are less likely to be skewe
d by a dominant participant due to the relative anonymity of the situation. Howe
ver, this can also lead to exaggerated responses or enhanced claims by participa
nts. Again, hire a trained moderator who understands the dynamics of the tool an
d your industry.
Observation: This method involves the study of the habits of your buyers by obse
rving them in action. In addition to placing video cameras in stores, Sapient Co
rp.'s Experience Modeling Discipline, an experience-based design research consul
ting firm in Chicago has even given subjects disposable cameras for photographin
g their usage habits.
Richards has two warnings for entrepreneurs taking the market research plunge. "
First, business owners should be extremely cautious about doing research themsel
ves," he says. "Interview subjects are not likely to be totally frank with a `re
searcher' who is part of the business, much less the owner. Second, keep an open
mind. Don't be defensive if your company or even you personally are criticized.
Social Graces
Making social responsibility work for you
August 23, 2004
URL: http://www.entrepreneur.com/marketing/publicrelations/article24608.html
Does your business use recycled paper products or donate to a homeless shelter?
A growing number of consumers consider such factors when deciding whether to pat
ronize your business. If you think getting involved in social causes would work
for your business, here are some things to consider. First and foremost, custome
rs can smell "phony" social responsibility a mile away, so unless you're really
committed to a cause, don't try to exploit customers' concerns to make a profit.
Here are some steps to making social responsibility work for you-and your commun
ity.
1. Set goals. What do you want to achieve? What do you want your company to achi
eve? Do you want to enter a new market? Introduce a product? Enhance your busine
ss's image?
2. Decide what cause you want to align yourself with. This may be your toughest
decision, considering all the options out there: children, the environment, seni
or citizens, homeless people, people with disabilities . . . the list goes on. C
alabria suggests considering a cause that fits in with your products or services
; for example, a manufacturer of women's clothing could get involved in funding
breast cancer research.
3. Choose a nonprofit or other organization to partner with. Get to know the gro
up, and make sure it's sound, upstanding, geographically convenient and willing
to cooperate.
4. Design a program, and propose it to the nonprofit group. Besides laying out w
hat you plan to accomplish, also include tangible indicators that will measure t
he program's success.
5. Negotiate an agreement with the organization.
6. Involve employees. Unless you get employees involved from the beginning, they
won't be able to communicate the real caring involved in the campaign to custom
ers.
7. Involve customers. Don't just do something good and tell your customers about
it later. Get customers involved too. A sporting goods store could have custome
rs bring in used equipment for children's shelter, then give them a 15% discount
on new purchases.
From Start Your Own Business: The Only Start-Up Book You'll Ever Need, by Rieva
Lesonsky and the staff of Entrepreneur Magazine (Entrepreneur Press)
There's a whole lot more to gaining customer loyalty than discounts, and that's
where customer relationship management comes in. We've asked marketing guru Fred
erick Newell, author of Loyalty.com: Customer Relationship Management in the New
Era of Internet Marketing (McGraw-Hill, $29.95), to give us a primer on the sub
ject and explain how marketing has changed with the times.
Entrepreneur.com: What is customer relationship management? How is it revolution
ary compared to database marketing?
Frederick Newell: It's the next stage of database marketing. In database marketi
ng, we were trying to learn about customers to sell more of what we wanted to se
ll. With customer relationship management, we're trying to learn more about cust
omers so we can offer them things they want to buy. There's a big difference.
Entrepreneur.com: What are the biggest mistakes you see companies making when tr
ying to build customer relationships and loyalty?
Newell: One of the major points of my book is that discount and points programs
are not going to build loyalty. They'll get people to show a card so you can cap
ture transactional information and that's fine, but you can't buy loyalty with d
iscounts or points. You have to develop loyalty by making customers' lives easie
r and more pleasant, making it easier for them to do business with you. And that
's a mistake many, many people are making.
Entrepreneur.com: What are a few examples of what companies are doing right to m
ake customers' lives easier?
Newell: In the book, I talk about Nat Sherman, the tobacconist. The company keep
s track of all its customers' likes, dislikes and purchases, and knows so much a
bout its customers that it can serve them beautifully. The company knows when it
's time for customers to reorder. Their reminder is online for them, their order
form filled out, and all they have to do is just click it. And the company lite
rally does make customers' lives easier. The reason for the loyalty is that cust
omers aren't going to bother to teach somebody else everthing they've already ta
ught Nat Sherman.
Many, many businesses now are collecting data, but they don't know what to do wi
th it, or if they know what to do with it, they're not doing it. And that includ
es most of the dotcoms and most of the supermarkets in North America. Some of th
e supermarkets in Europe and the United Kingdom are doing excellent work with th
is. If Tesco [a supermarket chain in the United Kingdom] does a 5 million mailin
g, it will have five different magazines based on people's interests. Within eac
h version, there will be 100,000 totally different cover letters addressing spec
ific interests of the customers.
Entrepreneur.com: Why shouldn't a company try to build relationships with all it
s customers? Why is it important to focus on certain groups?
Newell: Because some customers are just cherry pickers. They come in for low pri
ces, and when the discount goes away, they go away. So you want to find out whic
h customers are profitable and invest your efforts with them. Take the money you
were spending in trying to reach everybody and wasting on that bottom group, an
d you'll be able to afford more communication with your best customers.
Entrepreneur.com: What are some ways a company can use the Web to develop custom
er relationships?
Newell: First, they've got to get e-mail addresses, which not many companies hav
e done yet. And in the process of getting them, they've got to get approval to s
end e-mails to customers because customers don't want any more spam. Once you ge
t that information, it's quick and easy and near zero cost to send out thousands
of very specific, personalized messages. And I think that's the secret. If you'
re using e-mail, it has to be very, very personalized.
If you get in the e-mail game and are asking people to reply to you, you'd bette
r be able to handle the replies because people don't want it next week or next d
ay. They want it right now. And not too many people are well staffed to do that,
though some are outsourcing it very well. So it's a different ball game.
Entrepreneur.com: How are customer relationship management and the Web changing
brick-and-mortar businesses?
Newell: The fact is that customers have the power now because they have so much
more information. But I don't think it's the end of brick-and-mortar businesses.
I read the other day that 63 percent of people shopping online get their resear
ch and information online and then go buy at a brick-and-mortar location. So I a
ctually think that brick-and-mortar companies, in the long run, will do better t
han the pure dotcoms. The multichannel is going to be the answer, although I thi
nk they have to understand that there's a lot more to the Web than just selling
merchandise. E-commerce is fine, but e-service and e-information is just as impo
rtant. Customers value information highly, and the smart retailer, whether pure
dotcom or brick-and-mortar, is going to use the Web as a communication tool more
than just as an e-commerce selling tool.
petitors? If others deliver electrical supplies in 48 hours or less and you offe
r same day delivery, for example, you'll have a definite marketing advantage.
Inventory. Reliability is a vital and highly marketable feature. Do customers re
ceive exactly what they ordered when they need it? Have at least the same number
of products available as your chief competitors, or customers may assume your b
usiness is too small to depend on regularly.
Features such as top-quality service, on-time delivery and complete inventory en
hance your company's value and add up to an important benefit-peace of mind. Bui
ld these elements as well as cost savings into your marketing message and then s
et up an ongoing program that includes contact with your database at least every
six weeks. It takes an average of eight contacts with a prospect before a sale
is closed. So if you're not continually asking for the business, you can bet you
r competitors are. Communicate via direct mail, broadcast fax, telephone and in
person. And regularly mail postcards with brief survey questions to current cust
omers to gauge their satisfaction and future needs.
Kim T. Gordon is a multifaceted speaker, marketing expert and media spokesperson
-and one of the countryis foremost experts on entrepreneurial success. Her newes
t book, Bringing Home The Business (Perigee, $13.95, use http://www.smallbusines
snow.com/books.htm), identifies the 30 "truths" that can make the difference bet
ween success and failure in a homebased business. From formulas for positioning
a business and creating an image to Internet marketing strategies and tips for w
ork-at-home parents, by reading just one truth per day, in one month, readers wi
ll master a complete course on homebased business success. To read an excerpt, g
et information on media appearances and seminars, receive free how-to articles a
nd advice, or contact Kim, visit http://www.smallbusinessnow.com.
Budgeting Promotions
Becoming a household name is difficult when you have a shoestring budget. Our P
ublic Relations Expert has a few cost-saving tips to help you make a name for yo
urself.
By Joan Stewart | August 14, 2000
URL: http://www.entrepreneur.com/marketing/publicrelations/article31294.html
Q: When starting a business as a sole proprietor, how much of my capital should
I realistically allocate to public relations? How can I secure regular PR opport
unities on a shoestring budget?
A: Ah, the shoestring budget. Most of us entrepreneurs know it all too well.
Even if you don't have much to spend, take heart. There's no rule of thumb on ho
w much capital you should allocate to PR. Besides, you can more than make up for
a shortage of cash by promoting yourself creatively, and if you're doggedly per
sistent, you'll sell more products and services than if you spent thousands of d
ollars on advertising.
Here are some guidelines that should help you and other start-up entrepreneurs d
etermine where to spend your PR money and energy:
The basics. Buy good-quality business cards, letterhead and a marketing piece su
ch as a brochure. The brochure should concentrate more on how you can help peopl
e than on specific tasks you perform.
Paid advertising. Don't spend money on paid ads early in the game. They're usual
ly very expensive and sometimes not effective. There are far better ways to prom
ote yourself. These include:
1. Speak, speak, speak. Speak for free to audiences that are part of your target
market. That could include Rotary clubs, chambers of commerce and trade associa
tions. Public speaking engagements give you instant credibility.
2. Write, write, write. Write how-to or advice articles for your weekly and dail
y newspapers, local business magazines, trade publications, and print and electr
onic newsletters. Be sure you maintain the copyright so you can offer the same a
rticles to other publications. If you can't write, hire a freelancer who can gho
stwrite them for you under your name.
3. Teach classes. Your local adult education program might need your services. Y
ou won't get rich, but teaching will give you valuable exposure.
4. Do media interviews. Call local reporters who write for publications read by
your target audience. Invite them to call on you when they need background, comm
entary or story ideas about your industry. Small-business news is hot right now.
Tell reporters you're willing to discuss the challenges you're facing in your b
usiness. Position yourself as a helpful source.
5. Start a newsletter. Publish an e-mail newsletter, and pack it with helpful in
formation and special offers. This is much cheaper than a paper-and-ink newslett
er because you don't have to pay for printing or postage. When you eventually ge
t a Web site, be sure to link the newsletter to your site.
6. Build strategic alliances. Introduce yourself to other businesspeople who don
't compete with you but sell products or services to the same target audience. O
ffer to promote them if they promote you. Make sure they're people you like and
trust.
7. Do pro bono work. Offer your free services to an influential nonprofit group.
It will give you a chance to get in front of their board members, who may be in
a position to hire you for their own companies.
Keep doing what works and stop doing what doesn't. Then look forward to the glor
ious day when someone says, "I see your name everywhere!"
Joan Stewart, a media relations consultant and professional speaker and trainer,
works with companies that want to use the media to establish their expertise, e
nhance their credibility and position themselves as the employer of choice. She
also publishes The Publicity Hound, a bimonthly print newsletter featuring "tips
, tricks and tools for free (or really cheap) publicity," as well as tips bookle
ts on how to find and keep valuable employees. Visit www.publicityhound.com.
Q: I want to start a hobby shop in an area around Boston where there are current
ly no hobby shops. I've been conducting my own market research by asking local p
eople about my idea, and I've gotten a huge positive response. I think there's a
large market for this store, but I'm not sure how to begin the process. Any adv
ice?
A: Your hunch about the need for a local shop may be right on. However, your res
earch efforts shouldn't end here. There's more data you can uncover to support y
our expectations about a business's success as well as to uncover any potholes i
n your thinking.
You should cover the bases more thoroughly by examining a variety of information
sources. Once you've squeezed out more details from both conventional and uncon
ventional sources, then you can confidently move ahead. Here are more strategies
to consider:
Contact the appropriate industry or trade association. Inquire about research re
ports or survey data available to members. Information gleaned from these resour
ces can help you connect with more local hobbyists and shop owners, spot trends,
and circumvent unprofitable or problematic situations. Industry organizations o
ften provide a business with a start-up resource package upon request-so ask for
one.
Start with two groups: the Hobby Industry Association (HIA) and the National Ret
ail Hobby Stores Association (NRHSA). HIA produces a "Nationwide Craft/Hobby Con
sumer Study" that includes data on purchasing habits and information sources use
d by hobbyists. NRHSA's Web site includes a Hobby Resource section and a searcha
ble database of its membership. Both organizations host annual conferences. You'
ll find more industry groups listed in the reference book, World Directory of Tr
ade and Business Associations, which you can usually find at your local library.
Hire an MBA team. Through the Small Business Institute program, qualified gradua
te students are assigned projects to tackle for local businesses, including mark
et studies. The work team gives you a detailed report and an oral presentation.
Located at nearly 250 colleges and universities nationwide, some schools collect
nominal fees from their clients. Any small-business owner or manager is eligibl
e to participate. For information on a local program, call the Small Business Ad
vancement National Center at (501) 450-5300.
Call on a business research center. There are sites nationwide that provide inex
pensive research services to businesses. These facilities are usually affiliated
with an academic library. For example, the Center for Business Research (516-29
9-2833) at Long Island University has researched projects from the organic food
market to high-tech firms moving to Silicon Mesa. The Internet-Plus Directory of
Express Library Services: Research and Document Delivery for Hire lists 500 lib
raries that provide low-cost research services.
Study a set of old and current phone books. A shop may not exist today but are y
ou sure there's never been one in the area? Look to see if there's a category he
ading for your idea, confirm how much competition exists and the movement of oth
er businesses-those who've closed their doors or have grown or moved to other lo
cations. Old phone books can be found at public libraries.
Expand your focus group effort. Aim to interview a few hundred local hobbyists.
Where do hobbyists hang out online? Find out what listserv discussion groups are
available for your prospective customers. Subscribe to that list, learn the gro
up's posting protocol, and then pose your research question, asking members from
the Boston area to reply. Begin your listserv search at http://tile.net/lists/.
Also find out which hobby magazines sell their subscriber lists. You may be abl
e to purchase a tailored list of names, addresses and phone numbers of neighborh
ood folks for you to contact for your survey. Check out entities such as Krause
Publications, which is dubbed the world's largest hobby publisher.
Visit your "first stop" business information center. These offices can provide i
nformation about licensing, permits, your particular business type and running a
business in your community in general. Check the government listing in your pho
ne book.
Go through these additional steps, and you'll be on your way to business success
!
Offer your expertise. Can you tell other graphic designers how to hire assistan
ts? Has running a gift basket business given you the uncanny ability to suggest
the perfect present for any occasion? Editors are way more interested in finding
good content than in plugging your business-and giving advice can establish you
r credibility to potential customers.
Linda Formichelli has written for more than 70 magazines, including Entrepreneur
's Start-Ups, Redbook, Woman's Day and Psychology Today. You can visit her onlin
e at www.twowriters.net. She also runs a site that's against intrusive advertisi
ng at www.badads.org.
5. Tell people what to do in the first sentence. If you use a second sentence, i
t should explain "how" or "why."
6. Avoid the temptation to promote yourself or what you're selling in the tips.
Instead of "9 Reasons to Buy Car Insurance from the Honest Insurance Company," w
rite "9 Ways to Save When Buying Car Insurance."
7. Use tip sheets to tie your company to an upcoming holiday, to lobby for a par
ticular issue, or when you're introducing a new product or service. If you're a
seamstress who specializes in custom-made clothing, your tip sheet might be "9 T
hings to Look For in Well-Tailored Clothes."
8. Let your tip sheet double as a news release.
Tip sheets can also be used in your media kit, at trade shows, to stay in touch
with customers, on your Web site, offered free at your store, or used as a premi
um for current customers if they buy something by a particular date.
Joan Stewart is the "Ask the Experts" PR columnist for Entrepreneur.com. Sign up
for her free e-zine, The Publicity Houndis Tips of the Week.
go about researching how and to whom I would want to market my company? Where c
an I obtain the data I need in order to know whether I should venture into the g
lobal market with my business?
A: The biggest question you have to ask yourself is this: Where will you find pr
ospects who need what you offer, can afford it and are willing to pay for it? Fo
reign markets may be the answer, but you can't know for sure until you do a fair
amount of homework.
Your first step should be to contact the Trade Information Center (TIC) at the U
.S. Department of Commerce, a comprehensive resource on all federal government e
xport assistance programs. Call TIC's toll-free number, (800) USA-TRADE, to spea
k to an international trade specialist and get advice on how to locate and use g
overnment programs, sources of general market information, and basic export coun
seling. The TIC's Web sitehas FAQs concerning international trade and informatio
n on trade missions to overseas markets where you can meet with potential distri
butors and buyers. You can also request a package of information that includes a
list of publications to guide you through export transactions, trade leads and
information on export financing, and supply sources for market reports and count
ry information.
For even more information on specific countries and regions, international confe
rences, trade shows, business events and laws, visit Michigan State University's
Center for International Business Education and Research. On a recent visit, on
e click on "global" revealed links to an extensive array of the sites offering r
eports and analyses from such groups as American Express Small Business Services
and the World Bank.
Most businesses adding international components to their marketing programs use
two principal strategies. First, they establish a relationship with a business o
r individual in each of their targeted foreign markets, often with help from som
e of the resources mentioned above. Then they carefully craft a Web site to make
their products and services available to their new customers. Once you've ident
ified your target markets, you'll need to create a site that's accessible in the
appropriate languages and meets the unique needs of your international customer
s.
Kim T. Gordon is a multifaceted speaker, marketing expert and media spokesperson
-and one of the country's foremost experts on entrepreneurial success. Her newes
t book, Bringing Home The Business(Perigee), identifies the 30 "truths" that can
make the difference between success and failure in a homebased business. From f
ormulas for positioning a business and creating an image to Internet marketing s
trategies and tips for work-at-home parents, by reading just one truth per day,
in one month, readers will master a complete course on homebased business succes
s. To read an excerpt, get information on media appearances and seminars, receiv
e free how-to articles and advice, or contact Kim, visit http://www.smallbusines
snow.com.
URL: http://www.entrepreneur.com/marketing/marketingideas/article36178.html
What's the difference between buying a Ford and buying a Jaguar? Presumably, bot
h will get you from point A to point B. But when you buy a Jaguar (or any luxury
car) and park it in your driveway, it conveys an image of status-an often unspo
ken, though important, intangible benefit marketed to buyers of luxury cars.
Intangible benefits can be powerful motivators because they appeal to customers'
emotional needs and desires. When formulating marketing strategies, entrepreneu
rs often focus on the concrete, tangible benefits, such as money saved or conven
ient delivery, yet overlook the intangible benefits, which sometimes carry great
er weight.
What They Want Most
Imagine that you're the owner of a company that provides communications networki
ng solutions to midsized companies, and you're developing a new company brochure
. Your brochure should include a description of all the tangible benefits your c
orporate prospects might reap by hiring your firm, such as increased sales thank
s to better communication with customers. But unless the brochure also addresses
the intangible benefits your service will give the primary decision-maker (the
IT manager or chief information officer), your brochure is bound to fall flat.
Take into account, for example, that when your company performs well by carrying
through on its promised tangible benefits, the IT manager will look good to his
or her bosses and co-workers, possibly getting raises and promotions as a resul
t. Your brochure copy should convince the IT manager that he or she will enjoy p
eace of mind knowing you'll carry out your promises, thereby making your firm a
safe and career-enhancing choice.
Peace of mind and enhanced status are just two intangible benefits widely used t
o market products and services around the world. Another hugely popular intangib
le benefit is the way products make users feel. Case in point: the cosmetics ind
ustry. The late Charles Revson, founder of Revlon, is reported to have said, "In
the factories, we make cosmetics. In the stores, we sell hope." A cosmetic may
or may not make a woman look beautiful, but it can certainly make her feel beaut
iful.
Beauty marketing knows no bounds: At the high end, stores like Bergdorf Goodman
sell 1.36-ounce jars of face cream for $500. Then there are the newly affordable
day spas that have sprung up nationwide to offer full-day pampering. Here, the
marketing goal is to promise tangible benefits, such as reduced wrinkles or inch
es, while conveying the intangible benefits-the feelings of confidence and enhan
ced self-image these products and services may bring.
Make an Emotional Appeal
To increase the success of your own marketing materials, include intangible bene
fits that appeal to the emotions of your key decision-makers. For example, expan
d beyond the tangible benefits of making or saving money to include benefits tha
t zero in on how your products or services will help your customers look and fee
l good-whether to their bosses for professional performance, their neighbors or
their sweethearts.
Suppose you own an 11-year-old ac-counting firm that specializes in tax and esta
te planning for individuals and businesses. The tangible benefit of hiring your
firm is clear: Thanks to your 11 years of experience, you know the tax codes and
all the legal deductions available and will make fewer mistakes. As a consequen
ce, your clients will benefit by saving money on their taxes. What is the intang
ible benefit to be gained from your experience, which spans more than a decade?
Beyond saving your clients money, knowing you'll make fewer mistakes will allow
them to enjoy peace of mind. Whether you own an accounting firm or a sky-diving
school, clients and customers will appreciate your putting their safety and well
-being first. And your marketing materials should place those benefits front and
center.
A nationally recognized marketing expert with more than 21 years of experience,
Kim T. Gordon is the author of two books, including Bringing Home the Business:
The 30 Truths Every Home Business Owner Must Know. She is a top-rated speaker on
small office/home office success and president of National Marketing Federation
Inc. To contact her, visit www.smallbusinessnow.com.
eliverable. Within about three to seven business days, you'll have your lists-ei
ther transmitted electronically, delivered on magnetic tape or on labels directl
y to your mailing house.
Kim T. Gordon is a multifaceted speaker, marketing expert and media spokesperson
-and one of the country's foremost experts on entrepreneurial success. Her newes
t book, Bringing Home The Business(Perigee), identifies the 30 "truths" that can
make the difference between success and failure in a homebased business. From f
ormulas for positioning a business and creating an image to Internet marketing s
trategies and tips for work-at-home parents, by reading just one truth per day,
in one month, readers will master a complete course on homebased business succes
s. To read an excerpt, get information on media appearances and seminars, receiv
e free how-to articles and advice, or contact Kim, visit http://www.smallbusines
snow.com.
The second half of the battle is knowing what to say when you finally get a pros
pect on the other end of the line. A good opener always includes an introduction
of yourself and your company ("This is David Jones, president of Jones Design")
, followed by an opening benefit. The biggest mistake B2B salespeople make at th
is point is to launch into a litany of features instead of summarizing how their
offerings will benefit the prospect. Make a list of your studio's top four or f
ive benefits, and weave them into a sentence you can easily say. Then be prepare
d to adapt it depending on the needs of each prospect. He or she will be listeni
ng to you with one question in mind: "What's in it for me?" And when your opener
provides a reasonable answer, the stage will be set for a successful call.
Kim T. Gordon is a multifaceted speaker, marketing expert and media spokesperson
-and one of the country's foremost experts on entrepreneurial success. Her newes
t book,Bringing Home The Business(Perigee), identifies the 30 "truths" that can
make the difference between success and failure in a homebased business. From fo
rmulas for positioning a business and creating an image to Internet marketing st
rategies and tips for work-at-home parents, by reading just one truth per day, i
n one month, readers will master a complete course on homebased business success
. To read an excerpt, get information on media appearances and seminars, receive
free how-to articles and advice, or contact Kim, visit http://www.smallbusiness
now.com.
Buzz Skill
Need a little good press? Forget those costly PR agencies--sharpen your own pub
licity-getting skills.
By Nichole L. Torres | Entrepreneur Magazine June 2001
URL: http://www.entrepreneur.com/marketing/publicrelations/article40684.html
Sure, you've heard it all before the importance of PR and the tactics guaranteed t
o get your company noticed. We here at Entrepreneur are as bored as you are with
fluffy stories titled "10 Tips to Great PR." We wanted to get down to the nitty
-gritty of PR the stuff financially strapped start-ups can actually do to get them
selves noticed.
First things first. "Don't spend your last dime on a PR agency. You can do it yo
urself," says Eric Yaverbaum, founder of Jericho Communications and author of Pu
blic Relations Kit for Dummies (IDG Books Worldwide). This kind of initiative is
especially important during start-up, when there are more important things to s
pend your money on.
Your immediate priority: making sure your product or service is ready for public
consumption. "Get your product out and make sure it works and does something th
at people care about," says Ryan Chamberlain, a PR consultant who specializes in
start-ups. Once you're sure your widget is the coolest around, that's the time
to tell the world. And though you won't need to ante up the dough for an agency,
you'd better be prepared to spend tons of time on your PR.
The center of your campaign is your message. Make sure it's clear, concise and (
take it from a reporter) brief. If your basic mission can't be summed up in a fe
w sentences, it's too complicated and editors won't read it (trust us on this).
The best way to get media coverage, according to Yaverbaum, is to gauge the type
s of stories that are hot current events, breaking news, the latest scandals and tie
your company in with them. Every reporter is looking for a different spin on th
e story of the day. If you can think of a way to present the story with a fresh
angle and link it to your name, you won't be able to stop the press. But please,
for the love of God, read the publication (watch the TV show, listen to the rad
io program) before you pitch it. That way, you won't pitch Field & Stream about
your latest round of financing.
Media relations are only a small part of your job, though. One of the best, and
cheapest, ways to get publicity is to get out in your community. Network with ot
her entrepreneurs, join organizations, sponsor charities now's not the time to be
shy.
Finally, in the words of your 8th grade teacher, "Do your homework!" Do what the
professionals do and scour the industry publications: Inside PR, PR Week and th
e Public Relations Society of America's Tactics are all good places to read up o
n case studies and learn from the big boys. Says Yaverbaum, "Just because you're
not Procter & Gamble doesn't mean you can't get the kind of press Procter & Gam
ble gets."
Oh, and before we forget: If your press release says anything like, "the B2B sol
ution for the 21st century," go back to the drawing board.
Sweet Release
Who better to talk up a company to reporters than its intrepid founder?
Got tons of ideas but just ounces of money? Tenika Morrison, founder of Catching
theButterfly.com, found herself in exactly that situation. Her online vintage cl
othing store was groovy she just needed to do a little work to get the word out. H
aving no formal PR training and no funds to hire a PR consultant might have hind
ered a lesser entrepreneur, but 25-year-old Morrison was determined to get her c
ompany on the map. Her first stop? "The library! It's just been an amazing resou
rce," says Morrison. "You can get business magazines, computer magazines, busine
ss books, marketing books, vintage clothing books . . . it's incredible."
With the expertise she gained from all her reading, Morrison sent out a press re
lease just a week after starting her business in November 2000. She knew the key
to getting noticed was to be original her press release was short and fun and det
ailed the who, what, why, where and how of her company while still demonstrating
the funky side of her venture with a tongue-in-cheek list of the "Top 10 Reason
s to Write About CatchingtheButterfly.com."
Working out of her home in Puyallup, Washington, Morrison sometimes spends all d
ay on marketing issues from scanning different publications to searching for place
s to list her Web site. Still, she knows her mission is far from over. "I can't
just say, 'Hi, my name is Tenika. This is my story; please print it.'"
URL: http://www.entrepreneur.com/marketing/marketingcolumnistkimtgordon/article4
1504.html
Q: I manufacture archery target backstops. One of my markets is archery clubs wh
ose members are 95 percent bow-hunters. The remaining percentage is made up of t
arget archers. There are some 5 million archers in North America.
I want to attract new people to the sport of archery, which will spur additional
sales for me as well as other manufacturers I'm affiliated with. My plan is to
target the nonhunting interests. What is the most effective means of drawing the
ir attention? Should I publish articles about archery in inexpensive, small week
ly newspapers? How about offering classes or going to special events where I wou
ld give people a chance to shoot a bow? Am I on the right track?
A: I'm absolutely delighted to answer this letter. You see, so many entrepreneur
s make this same mistake: Instead of focusing their efforts on the segment of th
e market closest to making a purchase decision, they expend time and resources t
rying to convert a vast group of people who have little or no interest in what t
hey offer.
Major companies don't commit this error. Michelin Tires, for example, doesn't ta
rget its marketing efforts on people who don't own cars hoping to convert them i
nto car buyers who will someday want to buy tires. That would put them too many
steps away from the buying customer. Instead, they market to people who own cars
and are planning to replace their tires. Likewise, you must market to folks who
are actively involved in archery and who want to replace/upgrade/purchase new t
arget backstops. Leave the promotion of the sport to associations and others who
are directly responsible for enticing new participants. If you truly feel commi
tted to this aspect of the marketing effort, perhaps you can join such a group a
nd participate in its activities during your spare time.
To build your business, focus all your marketing efforts in media that reach arc
hers, with the least amount of waste. That means using well-targeted print media
for advertising and public relations efforts, like placing print ads and submit
ting articles or columns for publication that position you as an expert and your
products as superior.
Explore the availability of good direct-mail lists of enthusiasts who participat
e in the sport. You can probably rent subscriber lists from special-interest pub
lications or participate in their card decks. If you don't already have a terrif
ic Web site, you should set one up with links to major archery-related sites. Al
so, your idea to offer classes is a good one, provided you target those who have
already decided to participate in the sport and want to improve. Just be sure t
hat when you preach, you're preaching to the choir.
Kim T. Gordon is a multifaceted speaker, marketing expert and media spokesperson a
nd one of the country's foremost experts on entrepreneurial success. Her newest
book, Bringing Home The Business(Perigee), identifies the 30 "truths" that can m
ake the difference between success and failure in a homebased business. From for
mulas for positioning a business and creating an image to Internet marketing str
ategies and tips for work-at-home parents, by reading just one truth per day, in
one month, readers will master a complete course on homebased business success.
To read an excerpt, get information on media appearances and seminars, receive
free how-to articles and advice, or contact Kim, visit http://www.smallbusinessn
ow.com.
stions about their offerings. What do they do that you could do better? Is there
anything they're not doing that you could do? What are their prices like?
2. Set the right price. That means being priced competitively while also allowin
g you to cover costs and earn you a profit. Don't price yourself so low that cli
ents view you as a lesser value, nor so high that they choose one of your compet
itors over you.
3. Test-market your service. Before you start offering your service en masse,
try it out on a few local businesses. You'll get valuable feedback that could he
lp you make the necessary adjustments to your offering.
4. Visit the library. You'd be surprised at the wealth of information you can
find there just by digging around a bit. Not only can you get specific informati
on about your target group, but you can also discover industry associations and
professional organizations (many of which publish their own reports and publicat
ions) related to your business.
Once you've gone through these steps, you might also want to develop a questionn
aire. Based on your other research, think of several standardized questions that
you could easily ask prospective customers over the phone or even in person. Ha
ving this list of questions in front of you will help you feel less like you're
wasting anyone's time, and the answers will help you fine-tune your offering eve
n further.
You always have the option of conducting focus groups or hiring a market researc
h firm, but the costs can be prohibitive, so consider doing it on your own first
. In the end, when you're ready to actually start selling your service, you'll b
e able to pick up the phone and call prospects with confidence, knowing they'll
have trouble turning you down.
Karen E. Spaeder is editor of Entrepreneur.com and managing editor ofEntrepreneu
r magazine.
In the following week, Markham received 25 phone calls, including one from CNN,
and he's been booked for five radio interviews. Why was Markham's effort so effe
ctive? His target was radio and TV stations, and he crafted the news release to
fit that audience. His release touched on much of what broadcasters are looking
for: health, fitness, food and, most important, controversy. Not only was he arg
uing that the conventional wisdom was wrong, but he asserted that the science it
self-the nutrition studies underwritten by the food industry-was corrupt.
Remember Hillary Clinton's statement about a "vast, right-wing conspiracy" out t
o get the Clintons? That received an enormous amount of press coverage, proving
provocative statements are memorable and entertaining, perfect for TV.
Since Markham wasn't sure how to approach reporters, he turned to Paul Krupin, f
ounder of Imediafax.com, a news release advisory service in Kennewick, Washingto
n, for help. A former attorney, Krupin started his business after winning a big
case and vowed never to practice law again. He was so successful promoting his n
ew publishing business that others began asking him for help publicizing their o
wn businesses. He built his media-advisory practice from there, charging about $
500 to write a press release. (He's also the author of Trash Proof News Releases
, which he sells for $37, plus $5 shipping and handling, available by calling 80
0-457-8746.)
Krupin says it's critical to target the right media person, whether it be a busi
ness editor, calendar editor or book reviewer. Whoever it is, make sure to spell
the name and title correctly. (Find out when the publication or program is on d
eadline, and don't call at that time).
"What most business owners need to do is put themselves in the position of the e
ditor or producer," said Krupin. "You have to look at what they do. The key to b
eing successful is to give them news that's better than anything else they have.
It's that simple. Everything else is content and style."
Krupin says many business owners make the mistake of trying to sell their produc
t or service in a press release. "The media is adverse to anything that looks li
ke advertising," he says. "They want to educate, entertain, stimulate or provoke
their audience."
Another common mistake in writing news releases, according to Krupin, is trying
to tell the whole story: "People write way too much. Tell them what the story is
about and why it would be good for their audience." Remember, a press release i
s not the first draft of an article-it is the spark designed to prompt a reporte
r to want to write the story or an editor to assign it.
There's also a real difference between the needs of print, radio and TV outlets.
"Print media focus on facts and figures. They talk about strategies," said Krup
in. "Radio and television don't lend themselves to detailed information. It's ab
out sound bites, tone and excitement. For radio and TV producers, you want to te
ll them why their audience is going to love what you're going to say, or hate wh
at you're going to say. The focus is on the emotional reaction: 'Why am I going
to be entertaining?'"
Krupin said he has to tell many potential clients they are simply not ready to d
eal the press. "People who have business services and consumer products think th
ey can walk in with one news release and get coverage. I have to tell them, 'It'
s not gonna happen.'"
For instance, he met recently with a photographer who wanted to create a news re
lease promoting his new Web site. Krupin told him to forget it-he was never goin
g to interest the media in a story about his Web site. Instead, Krupin asked him
, "What do you know that people don't know about photography?" The photographer
said, "They don't know how to hang pictures up on the wall." Working from that i
dea, they created a news release with tips and tricks for hanging pictures. It l
ed to a number of print articles featuring Krupin's client, the photographer, as
the expert.
If you have positioned yourself as an expert, the payoff may not be immediate, b
ut be patient. Carl Fowler, vice president and general manager of the Rail Trave
l Center, a Vermont-based tour company that specializes in selling rail tours al
l over the world, said he got a call one day from a reporter working for a large
-circulation senior-citizen newsletter (Fowler's target market). He was trying t
o figure out which train was the "real" Orient Express-half a dozen trains claim
to be the real thing. Fowler spent time on the phone with the reporter, explain
ing the intricate history of trains and routes, including the fact that the "rea
l" Orient Express stopped running 20 years ago.
Some months later, the same reporter called back, asking Fowler if he had any to
urs for the fall foliage season, and has since written up several Rail Center to
urs in the newsletter. The Rail Travel Center issues news releases about three t
imes a year, sometimes to promote a new catalog or service. "Sometimes it works
and sometimes it doesn't," he said. "I don't have a clue as to why it sometimes
works. All I know is when the articles come out, it produces a wonderful surge o
f bookings."
Next week, in part two of this series, I'll talk about how to follow up on press
releases, tips for handling interviews and how to make friends with a journalis
t.
Jane Applegate is a syndicated columnist and the author of 201 Great Ideas for Y
our Small Business. For a free copy of her "Business Owner's Check Up," send you
r name and address to Check Up, P.O. Box 768, Pelham NY 10803 or e-mail it to in
fo@sbtv.com. Sarah Prior contributed to this article.
URL: http://www.entrepreneur.com/marketing/marketingbasics/marketingplan/article
43018.html
Firms that are successful in marketing invariably start with a marketing plan. L
arge companies have plans with hundreds of pages; small companies can get by wit
h a half-dozen sheets. Put your marketing plan in a three-ring binder. Refer to
it at least quarterly, but better yet monthly. Leave a tab for putting in monthl
y reports on sales/manufacturing; this will allow you to track performance as yo
u follow the plan.
The plan should cover one year. For small companies, this is often the best way
to think about marketing. Things change, people leave, markets evolve, customers
come and go. Later on we suggest creating a section of your plan that addresses
the medium-term future--two to four years down the road. But the bulk of your p
lan should focus on the coming year.
You should allow yourself a couple of months to write the plan, even if it's onl
y a few pages long. Developing the plan is the "heavy lifting" of marketing. Whi
le executing the plan has its challenges, deciding what to do and how to do it i
s marketing's greatest challenge. Most marketing plans kick off with the first o
f the year or with the opening of your fiscal year if it's different.
Who should see your plan? All the players in the company. Firms typically keep t
heir marketing plans very, very private for one of two very different reasons: E
ither they're too skimpy and management would be embarrassed to have them see th
e light of day, or they're solid and packed with information . . . which would m
n the written marketing plan stays intact to remind you of what you'd agreed on.
Top-level reflection: In the daily hurly-burly of competitive business, it's har
d to turn your attention to the big picture, especially those parts that aren't
directly related to the daily operations. You need to take time periodically to
really think about your business--whether it's providing you and your employees
with what you want, whether there aren't some innovative wrinkles you can add, w
hether you're getting all you can out of your products, your sales staff and you
r markets. Writing your marketing plan is the best time to do this high-level th
inking. Some companies send their top marketing people away to a retreat. Others
go to the home of a principal. Some do marketing plan development at a local mo
tel, away from phones and fax machines, so they can devote themselves solely to
thinking hard and drawing the most accurate sketches they can of the immediate f
uture of the business.
Ideally, after writing marketing plans for a few years, you can sit back and rev
iew a series of them, year after year, and check the progress of your company. O
f course, sometimes this is hard to make time for (there is that annoying real w
orld to deal with), but it can provide an unparalleled objective view of what yo
u've been doing with your business life over a number of years.
Source: The Small Business Encyclopedia and Knock-Out Marketing.
Continue on to the next section of our Marketing Plan Plan How-To >>Researching
Your Market
URL: http://www.entrepreneur.com/marketing/marketingbasics/marketingplan/article
43024.html
The purpose of market research is to provide relevant data that will help solve
marketing problems a business will encounter. This is absolutely necessary in th
e start-up phase. Conducting thorough market surveys is the foundation of any su
ccessful business. In fact, strategies such as market segmentation (identifying
specific segments within a market) and product differentiation (creating an iden
tity for your product or service that separates it from your competitors') would
be impossible to develop without market research.
Whether you're conducting market research using the historical, experimental, ob
servational or survey method, you'll be gathering two types of data. The first w
ill be "primary" information that you will compile yourself or hire someone to g
ather. Most information, however, will be "secondary," or already compiled and o
rganized for you. Reports and studies done by government agencies, trade associa
tions, or other businesses within your industry are examples of the latter. Sear
ch for them, and take advantage of them.
Primary Research
When conducting primary research using your own resources, there are basically t
wo types of information that can be gathered: exploratory and specific. Explorat
ory research is open-ended in nature; helps you define a specific problem; and u
Telephone. The main costs here are the interviewer's fee, phone charges, prepara
tion of the questionnaire, cost of researcher time, and the analysis and present
ation of the results of the questioning.
Personal interviews. Costs include the printing of questionnaires and prompt car
ds if needed, the incentives used, the interviewer's fee and expenses, cost of r
esearcher time, and analysis and presentation.
Group discussions. Your main costs here are the interviewer's fees and expenses
in recruiting and assembling the groups, renting the conference room or other fa
cility, researcher time, any incentives used, analysis and presentation, and the
cost of recording media such as tapes, if any are used.
Secondary data is outside information assembled by government agencies, industry
and trade associations, labor unions, media sources, chambers of commerce, etc.
, and found in the form of pamphlets, newsletters, trade and other magazines, ne
wspapers, and so on. It's termed secondary data because the information has been
gathered by another, or secondary, source. The benefits of this are obvious--ti
me and money are saved because you don't have to develop survey methods or do th
e interviewing.
Secondary sources are divided into three main categories:
1.
2.
Public. Public sources are the most economical, as they're usually free,
and can offer a lot of good information. These sources are most typically gover
nmental departments, business departments of public libraries, etc.
3.
Commercial. Commercial sources are equally valuable, but usually involve
costs such as subscription and association fees. However, you spend far less th
an you would if you hired a research team to collect the data firsthand. Commerc
ial sources typically consist of research and trade assocations, organizations l
ike SCORE (Society Corps of Retired Executives) and Dun & Bradstreet, banks and
other financial institutions, publicly traded corporations, etc.
4.
Educational. Educational institutions are frequently overlooked as viabl
e information sources, yet there is more research conducted in colleges, univers
ities, and polytechnic institutes than virtually any sector of the business comm
unity.
Government statistics are among the most plentiful and wide-ranging public sourc
es of information. Start with the Census Bureau's helpful Hidden Treasures--Cens
us Bureau Data and Where to Find It! In seconds, you'll find out where to find f
ederal and state information. Other government publications that are helpful inc
lude:
Statistical and Metropolitan Area Data Book. Offers statistics for metropolitan
areas, central cities and counties.
Statistical Abstract of the United States. Data books with statistics from numer
ous sources, government to private.
U.S. Global Outlook. Traces the growth of 200 industries and gives five-year for
ecasts for each.
Don't neglect to contact specific government agencies such as the Small Business
Administration (SBA). They sponsor several helpful programs such as SCORE and S
mall Business Development Centers (SBDCs) which can provide you with free counse
ling and a wealth of business information. The Department of Commerce not only p
ublishes helpful books like the U.S. Global Outlook, it also produces an array o
f products with information regarding both domestic industries and foreign marke
ts through its International Trade Administration (ITA) branch. The above items
are available from the U.S. Government Printing Office.
One of the best public sources is the business section of public libraries. The
services provided vary from city to city, but usually include a wide range of go
vernment and market statistics, a large collection of directories including info
rmation on domestic and foreign businesses, as well as a wide selection of magaz
ines, newspapers and newsletters.
Almost every county government publishes population density and distribution fig
ures in accessible census tracts. These tracts will show you the number of peopl
e living in specific areas, such as precincts, water districts or even 10-block
Mystery shopping is an early warning system for any business that relies on exte
nsive public contact.
Getting the most out of competitive store visits means having clearly defined ob
jectives and knowing what matters most to you and your customers. A clothing sto
re owner, for example, might shop her competitors to compare prices, the variety
of sizes and styles in stock, store hours, store clerks' friendliness and the w
ay customers are greeted. With a good shopping program, you experience your comp
etitor's store the way customers do, then apply the best of what you learn to yo
ur business.
Also shop retailers outside your industry. Laura Livers, president of Shop'n Che
k, a mystery shopping firm in Atlanta, recommends finding a company in a noncomp
eting field that faces similar operational challenges, such as handling phone or
ders and comparing their tactics and techniques so you can develop ways to impro
ve yours.
Stemberg suggests small retailers study the tactics used by leaders outside thei
r industries-"such as the Wal-Mart greeter," he says-and learn to emulate them.
The other side of shopping-based research takes place in your own store. Mystery
shopping is an early warning system for any business that relies on extensive p
ublic contact. Because poor service is most often cited as the reason for loss o
f sales, consider hiring a mystery shopper to evaluate the experience your store
offers. Professional mystery shoppers go to businesses posing as ordinary custo
mers and then provide evaluations of their experiences using written questionnai
res and reports.
"A successful mystery shopping program can evaluate and measure the product know
ledge and skills of salespeople," says Livers, whose company has nearly 30 years
' experience and 90,000 shoppers throughout the United States. She says a visit
from a mystery shopper is a "snapshot of time, and the more often you shop, the
more you fill your photo album and start to identify strengths and weaknesses."
Before starting a mystery shopping program, understand what your customers want.
Suppose you own a store that sells energy-efficient windows and doors. Mystery
shoppers can't help you build sales over the long term if the product quality is
poor, and they can't tell you what your target market wants from your business
or products. But they can help ensure that people who come in to shop for window
s are waited on promptly and courteously and that the sales information is prese
nted consistently. "Identify what the consumer wants and build a training progra
m around meeting their expectations," says Livers.
For help putting your own mystery shopping program together, go to www.quirks.co
m, where you can search more than 250 mystery shopping service providers. You'll
also find an extensive searchable database at the Mystery Shopping Providers As
sociation Web site.
Contact Kim T. Gordon, author of Bringing Home the Business, at www.smallbusines
snow.com.
Contact Sources
Shop'n Chek Worldwide
llivers@shopnchek.com
Staples
(508) 253-1833, www.staples.com
the James Bond movie GoldenEye. Prior to the movie's release, BMW dealers held p
rivate screenings and receptions for as many as 40,000 customers. They also held
a sneak preview of the car in New York's Central Park attended by about 200 mem
bers of the media who were treated to a surprise appearance by GoldenEye's star,
Pierce Brosnan.
While something of that magnitude is likely beyond your means, establishing excl
usivity-like being among the first to see the new BMW-and scarcity can help fuel
buzz. For proof, consider the craze over collecting Beanie Babies toys, the pop
ularity of TV shows that reveal the value of rare collectibles, and the enormous
buzz that fuels eBay.
The biggest myth about buzz is that buzz is all you need. Word-of-mouth often sp
reads slowly, so traditional marketing, including advertising and promotion, is
still necessary to facilitate sales. Buzz is the added spark you ignite when you
give the media and your best customers something to talk about.
Contact marketing expert Kim T. Gordon, author of Bringing Home the Business, at
www. smallbusinessnow.com.
Contact Source
PowerBar
(510) 843-1330, ext. 2544, www.powerbar.com
Emanuel Rosen
www.emanuel-rosen.com
sees receive training in crisis management and that they understand how to execu
te the company's plan, including calling the correct contact person at franchiso
r headquarters and their responses, if any, to the press.
Be open, honest and factual with the media.
Let the media know when you will be communicating with them.
Keep your message simple. Make certain that everyone can clearly understand and
follow the situation.
Use a steady hand-never panic.
The cornerstone of any good crisis management program is the ability to execute
your plan. Companies need to train everyone in their system on how to identify a
crisis (something that Starbucks obviously missed), what to do and who in the c
ompany to contact.
Speed, honesty and a plan you can execute are all central to an effective crisis
management program. Singular in importance in valuing a company's trademark is
its reputation. And, unfortunately, the damage from a poorly handled crisis can
cause long-lasting and often permanent damage to a company's reputation and its
marks.
Michael H. Seid, founder and managing director of franchise advisory firm Michae
l H. Seid & Associates, has more than 20 years' experience as a senior operation
s and financial executive and a consultant for franchise, retail, restaurant and
service companies. He is co-author of the bookFranchising for Dummiesand a form
er member of the International Franchise Association's Board of Directors and Ex
ecutive Committee.
Kay Marie Ainsley, managing director of Michael H. Seid & Associates, consults w
ith companies on the appropriateness of franchising; assists franchisors with sy
stems, manuals and training programs; and is a frequent speaker and author of nu
merous articles on franchising.
bout you.
As such, advertising is just one method of self-promotion. Don't forget about ma
rketing and public relations. And all three of these things have various subsets
-networking, direct mail, press releases, a logo and generating word-of-mouth, t
o name a few. Basically, you have to try a combination of strategies and find ou
t what works. You'll know what works when you start bringing in clients, those c
lients start bringing in clients, and so on until all the sudden you're running
a growing, thriving homebased business.
Before you get there, though, you have to research whether there's a market for
your services. If there isn't, you won't get any business, no matter how well yo
u think you've planned out your marketing campaign. Actually, part of that plann
ing means finding out whether you've got a target market waiting for your servic
es, so make that your first priority. You've indicated that you're relaunching t
his business after a hiatus; is there a reason you put business on hold for a wh
ile? Did you have trouble finding customers? Or did you have potential customers
, but you were you having trouble successfully promoting your business to them?
What strategies, if any, did you use before? What worked and what didn't? Let th
e answers to those questions guide you as you launch a new marketing campaign.
If you haven't yet figured out whether there's a market for your services, here
are three simple ways to find out:
1. Talk to the competition. Are there others in your area providing similar serv
ices? Look closely at their offerings. Are they successful? Can you offer someth
ing they can't? What kinds of marketing tactics are they using?
2. Talk to your prospects. Once you've talked to your competition and figured ou
t why you're better, go to businesses and individuals to find out whether they w
ould use your services. Tell them exactly what you're offering, and pay attentio
n to their reactions. Find out whether there's anything else you could offer to
meet their needs. This is most effective if done in person, since your prospects
won't need to mail anything back to you, and you'll get an immediate response t
o your questions. As an incentive, you could offer a prize or discount on servic
es to those who complete your survey.
3. Attend a trade show or expo. Trade shows are a great place to network and col
lect business cards and can help you locate prospects.
The information you gather from these three market research methods will provide
you with a foundation on which to build your marketing campaign. Entrepreneur.c
om's Sales & Marketing channelhas dozens of resources to help you build your bus
iness, including a step-by-step guide to writing a marketing plan. Just remember
to constantly assess your marketing tactics to determine whether they're workin
g, and don't ever be afraid to go back to the drawing board.
Karen E. Spaeder is editor of Entrepreneur.com and managing editor ofEntrepreneu
r magazine.
your approach, you'll position yourself to be more successful with your interac
tions with people.
5. Reward yourself when you've done well. If you make it to a networking event a
nd speak with, say, five or six new people and stay as long as you planned, give
yourself a reward. Perhaps it's a new book, a dinner out-whatever motivates you
. Withhold the reward if you don't meet your goal.
The bottom line? The more you network, the more proficient and confident you'll
become at it. And the more your confidence grows, the less power your shyness wi
ll have over you.
Sean Lyden is the CEO of Prestige Positioning (a service of The Professional Wri
ting Firm Inc.), an Atlanta-based firm that "positions" clients as leading exper
ts in their field-through ghost-written articles and books for publication. Clie
nts include Morgan Stanley, IFG Securities, SunTrust Service Corp. and several p
rofessional advisory and management consulting firms nationwide.
ype of publication its readership. Daily local newspapers are truly looking for
items of local interest, national stories with a local angle, timely topics with
in the readership community and the like. National or regional publications are
reporting on hot trends and items affecting the lives of those reading the publi
cation.
One editor wisely suggested: "First put yourself in the readers' shoes and think
of what you would like to read about. Then put yourself in my shoes, and think
about what could be reported on out of all the stories I get that would appeal t
o our readers."
Summarize your information, and be prepared to tell the editor/reporter why your
story is important or of interest to their readers. Don't overwhelm them with t
oo many details.
The preferred vehicle of communication is the press release. The editors on our
panel stated that 99 times out of 100, press releases are edited and shortened.
Because of this, they ask that press releases be short and to the point. Ramblin
g and unnecessary details will get noticed and remembered in a negative way. Sho
rt is good for press releases. This is one reason why the press release is prefe
rred. When asked their opinion on the submission of feature articles, all unanim
ously stated that these are not desired. That's what editors and reporters do--w
rite stories about news. They usually don't want anyone else doing it, or they a
re not needed. If, for some reason, an article is all they have, it will get rew
ritten and probably shortened anyway.
As I've said in previous articles, editors do not like promotion. They like news
. They see right through a PR spin to make promotion news. If you get one past t
hem, they remember. After all, they have control over what goes into the publica
tion. Establishing as positive a relationship as possible is advantageous for an
yone desiring PR and using the media to tell their story.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
m and http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
iated with the infusion of cash into your business, and to do so within a very s
hort period of time. By using strategic alliances, you can avoid having to borro
w, or bring outside investors into your business.
Two important strategic alliances are marketing alliances and product alliances.
Under a marketing alliance, you and another business exchange customer bases. T
his allows you to gain access to another business's customers, to whom you can m
arket your business's products and services. Additionally, you may be able to ea
rn a royalty or share revenue from the other business' (your alliance partner's)
sale of its products and services to your customers.
With a product alliance, you are able to offer another business's products and s
ervices to your existing customers, while your alliance partner sells your busin
ess's products and services to its customers. Under this type of alliance, your
business is able to sell products and services without any additional costly req
uirements, such as manufacturing know-how and capabilities, product distribution
networks, or increased investment in inventory and storage. Under most circumst
ances, your alliance partner can direct-ship its products and/or provide service
s directly to your customer, without your business having to be involved at all
beyond the sale. All your business has to do is collect the money and divide thi
s sales revenue between your business and your alliance partner.
Next Step
Get the alliance lowdown with The Strategic Partnering Handbookby Tony Lendrum.
The Internet has more clearly defined the respective roles of strategic alliance
s for business owners. Marketing alliances are facilitated by merely creating a
direct link from one business's Web site to their alliance partners'. The other
business's customers can reach your business with the click of a mouse (and visa
versa). Product alliances are created and activated when one business's custome
rs move to your business' site and purchase products and services, and when your
customers travel to other businesses' sites and make purchases.
The ideal businesses with whom to form alliances are those that offer products a
nd services that are complementary to those of your business. For example, if yo
ur business offers sporting equipment, you could create an alliance with a sport
s clothing retailer as a way of offering their sports clothing to your business'
s customers, while they sell your business' sporting equipment to their customer
s.
Before you enter into an alliance with another business, you must complete due d
iligence research and analysis to determine the trustworthiness, capabilities an
d reputation of any potential alliance partner. Referrals from a business's cust
omers and/or suppliers are good sources of information, along with any credit in
formation you can access. If the potential alliance partner has any existing suc
cessful alliances with other businesses, this feedback should be very useful to
you in making your decision about this potential alliance partner. Also, be cert
ain that you obtain signed copies of any and all appropriate confidentiality and
noncompete agreements, as well as any operating contracts, before you enter int
o any agreement. This requires that you have legal documents drawn up, protectin
g such assets as your business's proprietary trade secrets, its reputation and,
above all, your business's relationships with its existing customers.
Finally, before you make a strategic alliance a permanent agreement, you should
test your alliance concept with each potential alliance partner. Once you have t
he results of your tests, you can refine the terms and conditions of the allianc
e and then finalize all legal documents and operating agreements.
Remember, in order to be successful, an alliance must benefit all members suffic
iently to both entice them as well as maintain a strong level of interest and wo
rking cooperation throughout the entire term of the alliance.
David Meier received an MBA in Finance from Loyola of Baltimore, and spent much
of the 1970s teaching business courses; later, he created a consulting group, an
d for the next two decades, provided accounting and tax services to small-busine
ss owners. He is currently the founder and COO of Small Business 411, which prov
ides small-business owners with ongoing business coaching and the knowledge and
e material strictly online and see how students respond. If they overwhelmingly
prefer to access the information via your Web site, that might take care of your
question about whether to offer the material in a workbook or CD-ROM. If, howev
er, they overwhelmingly want a tangible product, you could make workbooks and CD
-ROMs available.
You can start your research as soon as you have a Web site ready, even if your c
ourse material isn't ready. Post an application form on your Web site, and inclu
de a question on the form about whether they prefer a tangible product (and what
kind) or online material that they can browse and print out at will. Market the
Web site to your target groups--see what kind of response you get. Good luck, a
nd happy teaching to you.
Karen E. Spaeder is editor of Entrepreneur.com and managing editor ofEntrepreneu
r magazine.
Publishing as a PR Vehicle
Write an article to establish yourself as an expert and garner publicity.
By Al Lautenslager | March 18, 2002
URL: http://www.entrepreneur.com/marketing/publicrelations/prbasics/article50030
.html
Q: Can feature articles be used to generate PR and promote my business?
A: When thinking of PR, one usually thinks of the media. When thinking of the me
dia, one usually thinks of press releases to communicate with the media. There i
s, however, another way to leverage the media for exposure and awareness, and at
a low cost. Feature articles are considered a media-rich vehicle for communicat
ing to the masses. Just pick up any magazine.
A feature article does a number of things:
1. It supplies content to the media to hopefully enhance the publication. Most p
ublications need a steady stream of informative articles. After all, this is the
raw material for the product of publications.
2. Having a feature article published gives the writer almost instant credibilit
y. Communicating through the media, to a target market, that a particular writer
is an expert has a long-lasting touch with residual value. This credibility is
certainly higher than what a paid, sponsored advertisement can provide.
3. Along the same lines as building credibility and establishing a high level of
expertise is just the very fact that an article was published. Other promotiona
l messages used in a total marketing campaign can be enhanced when stating thing
s like "As seen in Entrepreneur magazine" or "As published in USA Today." This w
orks with obscure publications as well.
One of the more important parts of feature article PR is the bio paragraph that
accompanies the article, usually at the end of the article. (Some publications w
ill feature bio information in a box apart from the article.) This source box, a
s it is commonly referred to, is where contact information-phone, fax, e-mail an
Do you know who your customers are? Read "Different Strokes" so your marketing c
an keep up with changing times.
Borrowing from "recessionary marketing" and applying the same mind-set, thought
processes and applications to recovery marketing will further separate the margi
nal companies from the successful ones. Recovery marketing boils down to investi
ng in the three things that should have been invested in when times got tough:
1. Increase the size of orders.
2. Increase the frequency of orders.
3. Increase the number of customers you sell to.
Enhanced marketing programs and increased investment in marketing accomplishes t
he above items. Free samples, seminars, consulting and speeches are incentives f
or the customer to buy more and to do it more often. Now is the time to put that
marketing line-item expense back into the budget. Prioritize three recovery mar
keting initiatives now, don't deviate, and certainly don't cut the expense or in
vestment that is made. We'll leave the concepts of consistency, persistency and
long-term thinking to other marketing articles.
Here are a few recovery tactics that will help your positioning as customers and
prospects decide where to spend their growing dollars earned from a recovering
economy:
Get publicity. If you don't already have a PR program in place, start one now. T
here are a multitude of reasons to write a press release. Focus on one editor an
d get something published. This is free marketing and an effective technique tha
t shows up in all the "marketing in tough times" articles.
Enhance current customer attention. The best prospect is a current customer. Thi
s is true whether we are marketing in a recession or in a recovery or in a boom.
Pay them the proper amount of attention. Prioritize them and see how far into t
heir account you can gain share. Share of customer is always a priority and will
help focus marketing efforts in a recovery.
Increase networking. Referral programs and word-of-mouth marketing are still low
-cost techniques associated with high success rates. There are ways to enhance t
his, but you have to put yourself in front of the potential buyer in some fashio
n or another or have someone else do it for you.
Repackage your products and services as bundles or higher-ticket items. This cer
tainly attains that goal of selling more per order. Customers who have stuck wit
h you through thick and thin will probably spend more in times of recovery.
Spend some money. Invest in that direct-mail program that you've been putting of
f. Send that new brochure to customers and prospects. Sometimes positive talk ab
out "preparing for the recovery" is very contagious. You'd be surprised what kin
d of mind-set you can create in your own market.
These are a few things to get you back on track if you cut that marketing expens
e (and want to beat the bandwagon hoppers) and want to ride the recovery wave. I
can't wait to write the next article in this series about "Marketing In Boom Ti
mes!"
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principal of marketing consulting firm Market For Prof
its, and president and owner of The Ink Well, a commercial printing and mailing
company in Wheaton, Illinois. Visit his Web sites at www.market-for-profits.com
and www.1-800-inkwell.com. Al invites everyone to sign up for his free report, "
50 People to Instantly Add to Your Network." You'll also receive a free online n
ewsletter, "Market For Profits."
your contact management program just as you would contacts with prospective clie
nts or customers. This will keep your program on track and important contacts fr
om falling by the wayside.
The way you handle the referrals you receive will solidify your relationships wi
th your sources. So be sure to keep your influencers in the loop with thank-you
notes or calls and updates on the satisfaction of each referral they send your w
ay. With a hard-working referral program in place, you won't have to rely on luc
k to win the business your company needs.
Kim T. Gordon is an author, marketing coach and media spokesperson-and one of th
e country's foremost experts on entrepreneurial success. Her newest book, Bringi
ng Home The Business, identifies the 30 "truths" that can make the difference be
tween success and failure in a homebased business. Kim offers one-on-one coachin
g by telephone to motivated individuals, providing practical marketing advice an
d budget-conscious strategies unique to your business. To receive free how-to ar
ticles and advice, get information on coaching and appearances, read a book exce
rpt, or contact Kim, visit http://www.smallbusinessnow.com, a huge site devoted
exclusively to marketing your small business.
o read further.
Following this, get right to the point of your pitch. It's always good to put wh
y your article/information is important to the readership/viewership of the publ
ication. At this point, it's OK to get a little deeper into your subject matter
to round out the summary, but remember, you are still "teasing." Any special twi
sts or reasons why your situation is unique can be stated here. A few more facts
(not fiction or opinions) can be included to round out the summary.
Back to writing basics and communicating what editors want to hear, you would th
en communicate exactly what you are proposing. Editors will check here to make s
ure you understand their publication-what column, what department, what section
of the publication. Editors also like to know the length of your proposed articl
e. It again lets the editor know that you know what you're doing.
To further lend yourself credibility, you can cite other publications where your
information has been published or where similar stories were printed. Also, inc
lude a brief bit about your bio/background, not the long, drawn-out bios that yo
u would use when people introduce you to speak. A standard letter closing, stati
ng next steps and follow-up with the appropriate level of courteous, respect and
etiquette, concludes the query letter.
Query letters can be very powerful. They can be the start of some very good medi
a relationships and will once again help editors and reporters do their jobs. Do
that, and your ability to use the media in your marketing mix will have a highe
r probability of success.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
m and http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
Drum Up Publicity
Ready to hit the papers with the latest news about your business? Hire a public
relations firm to help out.
By MieYun Lee and BuyerZone.com | April 15, 2002
URL: http://www.entrepreneur.com/marketing/publicrelations/article50976.html
Want to see your company mentioned in an article? While you can hope that a jour
nalist calls you, your odds improve dramatically if you take active steps to int
roduce your company to the media. A public relations agency can do the hard work
for you.
Advertising can be very effective in projecting the image that you want, but get
ting mentioned by the press can provide credibility that thousands of dollars in
advertising can never hope to achieve. PR firms can help you secure that credib
ility in the local, industry or national media through all different types of me
dia including print, radio, television or even the Internet.
What should you look for in a PR agency? In the end, PR firms are judged by the
press mentions, also known as "placements," that they can get for their clients.
As a prospective client, you should, too. Evaluate not only where the client wa
s placed but also what kind of placement they received, e.g. article vs. quote v
s. mention. Don't be turned off by placements in publications you might not be f
amiliar with; this may have in fact met the client's objectives.
Some may argue that reviewing portfolios may not reflect the results a public re
lations firm will actually be able to deliver for you. That is true. But assumin
g that your company is worthy of coverage, you will have the advantage of having
people working for you who already have established contacts with journalists w
here you may want to be placed.
Get free price quotes on public relations at BuyerZone.com.
See how well they can package your company. Read the press releases they have de
veloped for their clients. They should all be clearly written, informative, and
interesting. While there will no doubt be standard releases about new product an
nouncements, company results and executive appointments, the firm should also ha
ve some creative campaigns that promote their clients in a compelling manner. Pr
ess releases that grab your attention are likely to be interesting to the media
as well.
One of the most critical aspects to explore is to find out who will actually be
responsible for handling your account and pitching your story to the press. The
person should be friendly, articulate and persistent both in person as well as v
ia e-mail. No matter how newsworthy your story is, unless there is someone to pi
tch and follow up, you are unlikely to get picked up by the press.
Finally, look for enthusiasm. I don't care if you sell the most boring product o
r service in the world. If a PR firm is not honestly excited about your widgets,
they sure won't be able to convey it to any member of the press that they want
to encourage to write about you.
Working with a PR agency is not cheap. At minimum, you should budget thousands o
f dollars for a full campaign, with more limited projects being less costly. But
the return can be well worth the investment.
lications. A Silicon Valley refugee, Dan now lives in South Bend, Indiana, and c
overs high-tech start-up news in his Startup Trends newsletter. Free subscriptio
ns are available at http://www.startuptrends.bigstep.com.
to get excited and convey your ideas with enthusiasm when you're really moved b
y something. There are myriad things that touch our lives and change them for th
e better, increasing our sense of wellbeing. We relay stories about compassionat
e acts. We show off our latest gadget and extol its virtues. We encourage friend
s to seek help and support them by recommending professionals we have dealt with
. All of this comes from the heart-because we care. We are not lying. We have no
thing to gain by sharing this information, other than the good feeling that come
s from sharing and helping.
Marketing yourself and your business is no more than sharing your passion. You c
hose your profession for a reason-presumably because you believed there was valu
e in what you do. Focus on that value. Telling your story-marketing your busines
s-is most credible when it comes from the same place that led you to your busine
ss in the first place.
Think of a product or service that you really admire and imagine yourself tellin
g a friend about it. What are the benefits you received? How did it help or chan
ge your life? Why is this one better than anything else you've tried? Now do the
same exercise describing your own business. Detach from the fear of rejection,
or the embarrassment of talking about yourself. Try to be objective, and remembe
r the passion that drove you to start this business in the first place.
Honor Your Values
Product value can be defined as price plus perceived benefit. If the price a pe
rson pays is equal to the benefit a customer perceives he is getting, he feels t
hat he got a fair deal. If the price is too low, he might think there is less pe
rceived benefit-that the product is cheap or shoddy. If the price is too high, r
elative to the perceived benefit, the customer might not waste his money. The go
al is to understand the benefit of what you offer and then price it appropriatel
y.
"We will compromise on almost anything, but not on our values, or our aesthetics
, or our idealism, or our sense of curiosity."
-Anita Roddick, founder of The Body Shop
There is another place for the word "value" in marketing. Our personal values ar
e the principles we live by, and a fulfilling career is one where our core value
s are honored. Ask yourself how your business honors your core values. Are there
any aspects of your business that do not honor your values? If so, those are ar
eas that you might want to realign. In order to express your passion fully, ther
e should be nothing that you are "fudging" on or making excuses about. If you do
the best you can and honor your values, your business will be more fulfilling.
To paraphrase the golden rule, market to others as you would have them market to
you. In what marketing textbook is it written that marketing must be intrusive,
obnoxious, insulting or unethical? If you love receiving phone calls during the
dinner hour, then by all means, telemarket your service. But consider how your
customers or clients like to receive information. If you are unsure, ask them.
As to ethics and manipulation, your ideal customer doesn't like being lied to an
ymore than you do. A business that honors your core values will more than likely
honor your customer as well. The impact of customer satisfaction is huge. A gen
eral rule of thumb is that when someone likes a product, they tell an average of
three other people about it. However, when they are unhappy, they will tell sev
en other people about their negative experience.
The last common-sense guideline is to do what you are comfortable with. If you d
etest public speaking, don't do it. You will be uncomfortable and probably not s
how your business in its best light. An alternative might be to write articles o
r put up a Web site that people could visit. Create the marketing mix of product
, promotion and pricing that works with your style and supports your values. Thi
s might mean hiring people to do the parts you feel are necessary but are not pr
epared to do yourself.
Online press releases are a great way for your authored content to spread withou
t having to spend too much money. In fact, several online press release sites wi
ll let you post your press release free of charge. Some of the more popular and
user-friendly sites are PRWeb, pressboxand WebWire.
Internal PR, or PR on your site, is another form of online PR. Once press releas
es are written and distributed, posting them on a separate Web page gives you mo
re bang for your buck. You can take this a step further by developing key words
for each page these releases appear on and then registering them individually in
search engines. Another advantage of posting press releases on your site is tha
t you can add hyperlinks for additional information. Streaming video and sound m
ay also be added to enhance the communication of your information.
Because editors, Web publishers and site owners want fresh content, the writing
and distribution of feature articles is another way to take advantage of the eff
iciencies of online PR. Feature article writing is one of the best online or off
line marketing techniques. Sending well-written articles to various editors and
publications is often done online. I have seen many online newsletters comprised
solely of articles made available online for free, written by someone else. Typ
ically, these features are about your business or a subject related to your busi
ness or area of expertise. The following will accept your online article and pub
lish it on their site or in their e-mail list distribution: editor@saintrochtree
.com, Free-Content@yahoogroups.com, Newsletter@webpromote.comand PublishInYours@
onelist.com. For more leads, type "article submission" in any search engine and
you'll find additional choices.
One of the primary benefits to posting articles online is the opportunity to inc
lude a bio/contact/resource box at the end of the article. This box should inclu
de contact information for your business and background information. This resour
ce box just might bring you more response than most paid advertisements, and it'
s completely free.
Online press kits, another option, are becoming more and more popular. An online
press kit contains the same items you'd find in a traditional press kit, but it
comes in an electronic, Web-friendly form. For more on press kits, visit www.ma
rket-for-profits.com/info_pr.htm#7. When online press kits are put on your Web s
ite, that area is usually called an online press room. These press rooms might c
ontain any of the following: articles about the company that have run in the med
ia, white papers in PDF form, company position papers and statements to the pres
s, industry statistics, and usually the names and contact information for those
responsible for PR within the company.
Other cost-effective online PR strategies that work well include e-mail marketin
g and announcements; posting on forums, online bulletin boards and newsgroups; a
nd online radio, which is just starting to gain in popularity.
PR on the Net is so widely used because of its ease of distribution, the broad p
otential of contacts and, of course, its cost-effectiveness. Positioning it as y
ou would your traditional PR will increase the bottom and top lines of your busi
ness.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
mand http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
This is the last of a three-part series in Marketing from the Inside Out. In the
first article, I offered four guidelines for marketing: express your passion, h
onor your values, use common sense, and find a need and fill it. In the second a
rticle, I laid out a fundamental marketing analysis, which included the importan
ce of examining core values at a corporate and personal level. Now we will explo
re how to create a values-based marketing plan.
The biggest obstacles in my life were usually put there by me. To quote the cart
oon character Pogo, "We have met the enemy, and he is us." As a life coach, one
of my jobs is to help people get out of their own way. In their hearts, they kno
w what they want to do. They know right from wrong. They know when they are lyin
g to themselves. They know they have choices. But sometimes they forget. Instead
, they get in the habit of reacting to external demands, or following the herd,
instead of listening to their own inner wisdom.
Clarity & Alignment
Hopefully the earlier articles in this series helped you gain some clarity abou
t your product, your marketplace and your most authentic style of communicating
your message. You also had an opportunity to explore your core values and to see
where they were aligned with how you do business. Now it is time to put it toge
ther in order to gain some traction in today's mercurial marketplace. Begin with
a situational analysis. This includes an external analysis as well as a self-an
alysis.
The external analysis includes:
Customer analysis: What are the market segments, motivations and unmet needs?
Competitive analysis: Identify who your competitors are and their relative stren
gths and weaknesses.
Market landscape: This includes an industry analysis, the regulatory climate, et
c.
The self-analysis includes:
Performance analysis: What is your ROI, expected growth, etc.?
Cost analysis: Define your sustainable advantage, experience curve, etc.
Financial resources and constraints
Strengths and weaknesses: Include distinctive competencies, assets and liabiliti
es
Strategic questions
Identify your core values and where in your business you best honor them as well
as where you would like to more fully honor them.
Gaining Traction
You are now ready to identify strategic alternatives based on your company stre
ngths and core values. The goal is to develop a sustainable competitive advantag
e (SCA), which has three components:
1. The SCA must be important to the marketplace. (Find a need and fill it.)
2. The advantage needs to be substantial enough to really make a difference. Thi
s can be challenging in a saturated market, but becomes easier when one focuses
on a specific niche.
3. It needs to be sustainable in the face of environmental changes and competiti
on. This also speaks to how the company defines itself. The classic example is t
he railroad industry. Were they in the business of running trains or in the busi
ness of moving people and goods? How you define your business will have an impac
t on your ability to adjust to external factors.
There are three basic types of strategies: differentiation, low-cost and focus o
r niche.
Differentiation strategy: To differentiate your product or service from your com
petitors, you must make it appear different in some meaningful way. This can be
based on quality, reliability, innovation, level of service or product features.
Low-cost strategy: This is self-explanatory. When you are unable to differentiat
e your product from someone else's (e.g., it is a commodity), the purchase decis
ion is often based on price. The focus then becomes on controlling costs and red
n an exclusive basis?)
Multiple channels (How will your product or service reach your customers?)
Distribution structure (Will you use intermediaries, wholesalers, retailers, sel
l direct, etc.)
Other distribution decisions: You add to list.
Promotion Decisions
Promotional mix of personal selling, advertising, dealer incentives, sales promo
tion, direct mail, etc.
Budget
Message
Media (e.g. print, Internet, broadcast, etc.)
Other promotional decisions: You add to list.
Two last things to think about:
1. When external factors change, your marketing program must change as well. For
that reason, revisit your situation analysis and strategic alternatives on a re
gular basis. A marketing program is not cast in stone. It is a reflection of the
situation at a point in time.
2. Do not assume that you can make customers change their current behavior patte
rns. It is a much safer strategy to adapt to existing behavior patterns. Marketi
ng does not "make" people buy goods and services. Wise marketers monitor the rea
sons people purchase and then adapt their programs accordingly.
The key to marketing from the inside out is in developing your skills of making
supported and reasoned decisions that are grounded in a sound marketing analysis
and are in alignment with your core values. The world is moving quickly, and th
e Internet allows your customers to educate themselves, compare prices, understa
nd your company structure and even check you out as an individual. The BS detect
or is set on high, and it is the most authentic products and services, those tha
t offer true value for an expressed need, by people with ethics and honor, that
will survive and prosper.
Rebecca Cooper is a professional and personal coach who works with visionary peo
ple seeking to create and live authentic lives. She helps provide clarity, illum
inate choices and reflect the passion of her clients. To explore what's next in
your life, e-mail her at Rebecca@authentes.com or visit her Web site at www.auth
entes.com.
Making PR Work
Is your PR not doing its job? Perhaps it's time to revisit your strategy.
By Al Lautenslager | June 17, 2002
URL: http://www.entrepreneur.com/marketing/publicrelations/prbasics/article52840
.html
Q: Although I've invested a lot of time and money, I'm not sure if my PR strateg
y is really working. How do you suggest I evaluate its effectiveness?
A: Troubleshooting PR is almost the reverse of planning your PR. Think of all th
ose things you would do in a public relations campaign and see what's working an
d what's not. Once you understand these components, they can be isolated, change
d if necessary and then retested for contribution significance.
Usually when you feel that PR is not providing results-or at least the results y
ou had hoped for-it's due to one of four primary components. The four components
to isolate, analyze, fix and test are as follows:
The message: Although sometimes subjective, you must check to make sure your mes
sage is clear, concise and attention-getting to your audience. Does it clearly s
ay who, what, where, when and how in the first few sentences or paragraphs? Is t
he message newsworthy or a blatant promotional message? Does the message relate
to you, your company, product or service, or does it relate to the challenge tha
t you're offering the solution for? If all is in order-and if the message is per
suasive, newsworthy and unique-consider one of the other components.
The headline: We all know the importance of a headline. Not only is the headline
in a news release important, but if you're communicating via e-mail, the headli
ne or subject line in the communication is just as important. Think about how yo
u read a newspaper or magazine. You look at the pictures first and the headlines
second. If the headline doesn't grasp your attention or really interest to you,
you skip over it. Writing a crafty headline can entice a reader to read on, whe
ther there's distinct interest or not. Don't forget about sub-headlines as well.
A large majority of press releases do not use sub-headlines, which can be a sec
ond chance at grabbing a reader's attention. Test different headlines using e-ma
il or reworded releases.
The editor: Editors get hundreds of press releases each week. They have one job,
and it isn't to please everyone sending in a release. Their job is to please th
eir readership. Knowing this, releases and other PR should be directed at this o
ne objective. Put yourself first in the readers' shoes. Second, put yourself in
the editor's shoes. Ask the same question the editor asks in regards to pleasing
his or her readership.
Having a relationship with an editor can increase the probability of positive PR
. Showing an editor that you're a reliable source of information on certain subj
ects can be very valuable. This does not imply schmoozing or overbearing followup, but it does require a proactive communication strategy. Editors are the gate
keepers. They hate promotion. Give them news, a unique angle or a story that is
of local interest, and you'll have successful public relations.
The target audience: We've all heard the saying about what is heard if a tree fa
lls in a forest and no one is there to hear it. The same anecdote can apply to P
R when it comes to the target audience. You could have the best message ever and
the best vehicle over and over, but if the right potential buyer doesn't receiv
e your message, nothing gets marketed and no one acts.
Putting yourself in front of a potential buyer is the key to marketing and selli
ng. No potential buyers? No selling. The right target audience might be the righ
t segment, the right niche within a segment or the right people within a niche.
If you are marketing to banks, are you targeting the bank president or the branc
h manager? If you're marketing to manufacturers, are you marketing to the operat
ions department or the purchasing department? From a PR point of view, this mean
s targeting the right publications. What do your prospects and customers read? W
here are they most likely to see you? What media do they pay attention to? All t
his has to do with having the right target audience for your marketing. Just as
a side note, don't forget about current customers as part of your target audienc
e. Even breaking up current customer segments into different targets may be more
effective for your marketing. Find the people to populate the forest and let th
e trees fall.
If all the above is in order and deemed to be effective, don't fix anything. If
all the above is in order and PR is still not being effective, then you need to
revisit your overall marketing strategy. Hopefully, before any campaign, you hav
e strategically evaluated your product, distribution, pricing, promotion and adv
ertising. Troubleshooting means not only trying to find out what the problem is,
but also what the problem is not. With these four components outlined, you can
differentiate what's working and what's not and increase the probability of a mo
re successful PR campaign.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
m and http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
Ivan Misner is co-author of the New York Times bestseller Masters of Networking.
He is the founder and CEO of BNI, the world's largest referral organization wit
h more than 2,400 chapters in 13 countries around the world. He also teaches bus
iness courses at California State Polytechnic University, Pomona, and resides in
Southern California with his wife and three children. Dr. Misner can be reached
at misner@bni.com.
.html
Q: I'm working with a PR contact, and they have the opportunity for me to be quo
ted in a national publication. However, my market is typically a local market. H
ow can this national publicity help my business?
A: First of all, it is a well-known fact that any PR is good PR, unless it is as
sociated with a crime or an obituary. Any national PR you receive can always be
put to good use in a local market.
If you only do business in a local market, and national exposure will not necess
arily lead to direct sales or awareness unless someone in your local market happ
ens upon the national story, there are still benefits to be gained. For instance
:
1.
A copy of the publication containing your national PR can be passed around, mail
ed or generally distributed to clients and prospects. This is another way to "to
uch" customers and prospects; they typically like to be informed about special a
ccomplishments and kept up-to-date on both you and your company.
1.
If the national publication is noteworthy, you can cite "as seen in" on
all printed advertising, e-mail signatures and point-of-purchase marketing. "As
seen in Time magazine" or even The Wall Street Journal can give you tremendous c
redibility and set you apart from your competition in a big way.
2.
One of the objectives of PR is to become known as an expert. What better
way to be deemed an expert than to be published or mentioned in a prominent nat
ional publication? Which do you think your prospects would rather choose? One of
the 10 people in your business with average awareness, credibility and exposure
or someone who's been quoted, published or who has appeared in a national publi
cation as an expert?
3.
With national PR comes the chance that your story will be picked up by a
syndicated service, increasing exponentially the potential places for publicati
on.
4.
National PR can lead to national interviews on TV, radio and so on. This
can be followed up by even more PR about the nationally publicized interviews;
it starts feeding on itself. If it doesn't automatically come as a result of the
original publication, you can generate press releases talking about your press
releases. For example: "XYZ Co., a local provider, was recently featured in the
national business publication Fortune magazine. Mr. Smith is available for inter
views, on-air appearances and visits."
5.
National PR can give an air of celebrity status for a local business. On
ce again, this truly separates you from your competition. Rarely are there two c
elebrities in the same market from the same business. There is only room for one
, and it might as well be you.
6.
National interviews can be taped and distributed to clients and prospect
s. These can be offered for sale or as a free incentive to get people to contact
you or to send in for more information. These leads can then be followed up wit
h sales calls and closed for eventual sales.
These are just a few ways national publicity can aid a local business in a local
market. In some cases, it may even give a local business the impetus to conside
r taking the business to a more national level or at least investigate the feasi
bility of a regional business.
Remember, too, this is just one component of your marketing plan. You should be
using many, many strategies that work well together, offer results and raise awa
reness.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
m and http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
product. For example, imagine your company has created inventory-control softwa
re. You could advertise in business and trade publications, which often have spe
cial classified sections or offer lower-cost regional editions. And you could re
nt direct mail lists of businesses that fit your target audience profile, then s
end mail to each list up to three times. With a technology product like this one
, e-mail marketing could provide a low-cost supplement to your mail campaign. Yo
u can expect to pay $100 to $350 per thousand for an e-mail list (www.edithroman
.com) and escape the printing and postage costs of direct mail.
With a limited budget, success often comes from developing a wholesale marketing
program that targets select catalogers or retail stores.
E-mail marketing could also be used to launch a computer game, for example. Outd
oor billboards, magazine ads and place-based media that target young males-from
posters in nightclubs (www.ajindoor.com) to ads on stadium snack packs (www.inno
vativemediaservices.com)-would enhance the campaign.
But some products must be experienced by potential buyers firsthand. Consumer cr
aft shows (www.craftfair.com) and expos, as well as trade shows for B2B marketer
s (www.tsnn.com), can help present your product in a stimulating way.
$10,000 to $50,000: With a limited budget, success often comes from developing a
marketing program targeting select catalogers or retail stores. A new line of f
urniture, for instance, could be introduced at home furnishings trade shows, whi
ch would also let you develop a list of catalogers and retailers to call. A PR p
rogram that includes releases and product photos, followed by phone calls to edi
tors at decorating publications, would complete your media mix while adding litt
le to your costs.
PR can also lay the groundwork for taking a local product to a national audience
. Let's say you market gourmet brownies. A compelling story in a major magazine
about your old family recipe could help you sell to stores nationwide. Smart PR
and solid, creative thinking are investments of time, not money. And they can ma
ke things happen for you.
QUICK PICK
Your sales force needs critical customer information to make a sale, and Partici
pate Enterprise software from Participate Systems Participate Systemsprovides an
swers in just seconds. Offering more than your standard contact information, the
software gives salespeople real insight into customer relationships. For instan
ce, salespeople can access details about how to deal with a particular customer
who was either landed or lost. The software's "knowledge bank" integrates seamle
ssly with e-mail or a Web browser; pricing starts at $500 (street) per user. -St
eve Cooper
Contact marketing expert Kim T. Gordon, author of Bringing Home the Business, at
www.smallbusinessnow.com.
Permanent Press
Make your Web site a magnet for news-hungry journalists.
By Paul and Sarah Edwards | Entrepreneur Magazine August 2002
URL: http://www.entrepreneur.com/marketing/publicrelations/article53758.html
u haven't made the connection between specific items or services you need and th
e people who can supply them. But when help is offered, it's to your advantage t
o be prepared and to respond by stating a specific need.
Don't let the next opportunity for others to help slip through your fingers! Bei
ng prepared with some simple requests can make a real difference in the success
of your business. Systematic referral marketing requires that you determine, as
precisely as possible, the type of help you want and need. There are many ways y
our sources can help you promote yourself and your business:
1. They can provide you with referrals. The kind of support you'd most like to g
et from your contacts is referrals--the names of specific individuals who need y
our products and services. They can also give prospects your name and number. As
the number of referrals you receive increases, so does your potential for incre
asing the percentage of your business generated through referrals.
2. They can introduce you to prospects. Your contacts can help you build new rel
ationships faster by introducing you in person to people they think need your pr
oducts and services. Furthermore, they can provide you with key information abou
t the prospect. They can also tell the prospect a few things about you, your bus
iness, how the two of you met, some of the things you and the prospect have in c
ommon, and the value of your products and services.
Learn More
Want to encourage your happy customers to spread the word about your business? H
ere's how.
3. They can endorse your products and services. By telling others what they've g
ained from using your products or services in presentations or informal conversa
tions, your sources can encourage others to use your products or services.
4. They can display your literature and products in their offices and homes. If
these items are displayed well--such as on a counter or bulletin board in a wait
ing room--visitors will ask questions or read the information. Some may take you
r promotional materials and display them in other places, increasing your visibi
lity.
5. They can distribute your information. Your contacts can help you distribute m
arketing materials. For instance, a dry cleaner might attach a coupon from the h
air salon next door to each plastic bag he/she uses to cover customers' clothes.
Including your flier in the middle of their newsletter is another idea.
6. They can publish information for you. Your contacts may be able to get inform
ation about you and your business printed in publications they subscribe to and
in which they have some input or influence. For example, a source who belongs to
an association that publishes a newsletter might help you get an article publis
hed or persuade the editor to run a story about you.
Keep this list with you and add to it as other needs occur to you. Knowing how t
o match your needs with the right sources is key to obtaining the type of help y
ou need. But remember--it's a two-way street. These support activities are also
things you can do to help your contacts promote their businesses and generate re
ferrals. Helping your sources achieve their goals goes a long way toward buildin
g effective and rewarding relationships.
Finally, it's good practice to develop a list of ways to reward referral sources
for helping you. Once a referral has become a customer, be sure to recognize an
d reward your source appropriately. Doing so encourages them to send you more re
ferrals. Distinguish between tangible (e.g., cash) and intangible (e.g., a publi
c thank-you) rewards. Estimate the cost, and set aside some money to pay for you
r recognition program. The key is to find a unique, memorable way to say "Thank
you" and to encourage your colleagues and friends to keep sending you referrals
that turn into business.
It may take a while, but if you've selected and trained your sources well, and i
f you use the system to its best advantage, you will speed up the process of tur
ning the ever important referral into business.
Ivan Misner is co-author of the New York Times bestseller Masters of Networking.
He is the founder and CEO of BNI, the world's largest referral organization wit
h more than 2,400 chapters in 13 countries around the world. He also teaches bus
iness courses at California State Polytechnic University, Pomona, and resides in
Southern California with his wife and three children. Dr. Misner can be reached
at misner@bni.com.
gnage with your company name and contact information and a rack brochure on your
business and its products. You could give scheduled talks for customers on how
to set up a home theater and create a contest or giveaway that could be promoted
in the store and in its advertisements to draw attention to your display.
By combining marketing partnerships with place-based marketing strategies, you'l
l create a low-cost, high-reach campaign that affords multiple opportunities to
make impressions on B2B prospects as well as consumers. Having a quality display
in a good retail location will help you earn credibility as a viable business a
nd will go a long way toward building the trust you need to gain valuable B2B co
ntracts. It will also help you create effective marketing tools. For example, yo
u could shoot a short promotional video demoing the installation and setup of th
e retail display to use as a presentation tool with B2B prospects. And you could
use the retail display site to meet with select contractors and developers.
All in all, your marketing efforts can go as far as your imagination and your ab
ility to foster successful marketing partnerships will take you. With a bit of n
egotiation and hard work, you'll get what most new entrepreneurs need most: lots
of bang for very few bucks.
Kim T. Gordon is an author, marketing coach and media spokesperson-and one of th
e country's foremost experts on entrepreneurial success. Her newest book, Bringi
ng Home The Business, identifies the 30 "truths" that can make the difference be
tween success and failure in a homebased business. Kim offers one-on-one coachin
g by telephone to motivated individuals, providing practical marketing advice an
d budget-conscious strategies unique to your business. To receive free how-to ar
ticles and advice, get information on coaching and appearances, read a book exce
rpt, or contact Kim, visit http://www.smallbusinessnow.com, a huge site devoted
exclusively to marketing your small business.
ou can't go into the game expecting to win just with the home run.
During the rise of the not-so-recent economy and the related dotcom boom, good t
imes could be had by all. Many people found home runs, while singles and doubles
were forgotten. Now that the economy has turned downward and the dotcom boom ha
s reversed, those still looking for home runs are coming up empty-handed. It's s
till a game of singles, even in the world of PR and marketing. A press release h
ere, a news conference and a feature article there--these all add up to effectiv
e communication of a company's message or brand. Notice it's not one event or on
e communication.
I've said before that marketing is made up of many, many, many things. They all
support one another. They all work toward getting the job done, just like in a b
aseball game. Sure, there's a chance every now and then to hit that home run, bu
t looking for it all the time is futile.
Communicating with the media often takes baby steps. You have to get the word ou
t about your company, product or service. This starts the process of awareness a
mong editors and producers of the media they control.
Jay Conrad Levinson of "guerilla marketing" fame speaks often about how many tim
es a customer or prospect must be touched before he or she takes action. All the
se touches represent baby steps (or singles in the baseball vernacular). Not onl
y is marketing made up of many, many things, but so is public relations. Think o
f all the topics you can write a press release about. Get one or two published,
and you'll hear prospects and customers saying things like, "I see you in all th
e papers," or "Every time I turn around, I see your name published." In actualit
y, this is only one or two publications that are working the minds of the reader
in synergistic fashion--"synergistic" being the key word. After all, synergy re
fers to the concept of adding the few to make the whole strong--hitting singles
to win the game and taking baby steps to make great strides. PR and marketing wo
rk the same way.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
m and http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.
World's Best Known Marketing Secret: Building Your Business With Word-of-Mouth M
arketing.
A contact sphere is a group of business professionals who have a symbiotic relat
ionship. They are in compatible, noncompetitive professions, such as a lawyer, a
CPA, a financial planner and a banker. If you put those four people in a room f
or an hour, they're going to do business together. Each one is working with clie
nts that have similar needs but require different services. Hence, they're worki
ng that symbiotic relationship.
My favorite example of a contact sphere is the caterer, the florist, the photogr
apher and the travel agent. I call this the "wedding mafia"! If one gets a refer
ral to a wedding, then they all get a referral to the wedding. These professions
, more than most, have truly learned how to work their contact sphere.
Here are some other examples of contact spheres:
Business services: printers, graphic artists, specialty advertising agents and m
arketing consultants.
Real estate services: residential and commercial agents, escrow companies, title
companies and mortgage brokers.
Contractors: painters, carpenters, plumbers, landscapers, electricians and inter
ior designers.
Health care: chiropractors, physical therapists, acupuncturists and nutritionist
s.
Let's take a computer sales and service company as an example. That contact sphe
re may include sales reps for telecommunications hardware firms and photocopier
companies. Also, contractors who specialize in installing wiring may fit within
this contact sphere to assist in wiring installations. Also, don't forget the co
mputer trainers, who work with people and their computers on a daily basis, as w
ell as business coaches and accountants, who may have clients that need to impro
ve their company's technology.
To get the most out of your contact sphere:
Identify as many professions as possible that fit within your company's contact
sphere. Take a look at what professions your industry tends to work with to get
an idea of repetitive and reciprocal referrals. Create a list of these professio
ns.
Identify specific individuals who could fit into your contact sphere. Go to vari
ous networking groups and consult your business card file and database.
Invite these people to participate in networking groups with you so you can form
alize your relationship and have a way to stay in regular contact. Maintaining t
he relationship is key. A good way to do that is to participate in groups that p
ut you together on a regular basis.
Evaluate the professionals in your contact sphere that you are presently referri
ng. If they are not reciprocating, you may have the wrong profession or the wron
g person. Fill the spot with someone who is willing to reciprocate.
Although developing a solid contact sphere will greatly increase your business,
you must remember that it alone is not enough. Because contact spheres consist o
f small groups, you're not likely to gain exposure to a large number of individu
als. Hence, work on developing your overall network of contacts at the same time
you are developing your contact sphere.
Good luck. Contact spheres are a great way to start building your professional n
etwork.
Ivan Misner is the founder and CEO of Business Network International (BNI), whic
h has more than 2,700 chapters throughout the world. He is also the author of fi
ve books, including his New York Times bestseller, Masters of Networking, as wel
l as Entrepreneur Press' forthcoming Masters of Success.
siness's newsletter on a regular basis and who, in return, remain loyal customer
s. By properly using a newsletter, your business can enjoy a greater degree of r
etention in its existing customer base, while at the same time encouraging them
to buy more. This combination of retention and plus sales can make a significant
positive contribution to your business's net growth. You'll lose fewer customer
s while selling more to those who stay!
David Meier received an MBA in Finance from Loyola of Baltimore, and spent much
of the 1970s teaching business courses; later, he created a consulting group, an
d for the next two decades, provided accounting and tax services to small-busine
ss owners. He is currently the founder and COO of Small Business 411, which prov
ides small-business owners with ongoing business coaching and the knowledge and
support required to enable them to become truly successful entrepreneurs. Visit
the Small Business 411 site at http://www.smallbusiness411.com
as a conduit.
Learn More
Get more networking tips in "Networking With Confidence."
4. Listen and ask questions. Remember that a good networker has two ears and one
mouth and uses them proportionately. After you've learned what another person d
oes, tell them what you do. Be specific but brief. Don't assume they know your b
usiness.
5. Don't try to close a deal. These events are not meant to be a vehicle to hit
on businesspeople to buy your products or services. Networking is about developi
ng relationships with other professionals. Meeting people at events should be th
e beginning of that process, not the end of it.
6. Give referrals whenever possible. The best networkers believe in the "givers
gain" philosophy (what goes around comes around). If I help you, you'll help me
and we'll both do better as a result of it. In other words, if you don't genuine
ly attempt to help the people you meet, then you are not networking effectively.
If you can't give someone a bona fide referral, try to offer some information t
hat might be of interest to them (such as details about an upcoming event).
7. Exchange business cards. Ask each person you meet for two cards-one to pass o
n to someone else and one to keep. This sets the stage for networking to happen.
8. Manage your time efficiently. Spend 10 minutes or less with each person you m
eet, and don't linger with friends or associates. If your goal is to meet a give
n number of people, be careful not to spend too much time with any one person. W
hen you meet someone interesting with whom you'd like to speak further, set up a
n appointment for a later date.
9. Write notes on the backs of business cards you collect. Record anything you t
hink may be useful in remembering each person more clearly. This will come in ha
ndy when you follow up on each contact.
10. Follow up! You can obey the previous nine commandments religiously, but if y
ou don't follow up effectively, you will have wasted your time. Drop a note or g
ive a call to each person you've met. Be sure to fulfill any promises you've mad
e.
Ivan Misner is co-author of the New York Times bestseller Masters of Networking.
He is the founder and CEO of BNI, the world's largest referral organization wit
h more than 2,400 chapters in 13 countries around the world. He also teaches bus
iness courses at California State Polytechnic University, Pomona, and resides in
Southern California with his wife and three children. Dr. Misner can be reached
at misner@bni.com.
Secondary research is less expensive than primary research. It's often free, in
fact. It's also more readily available than you may think.
Secondary research can be internal, like sales reports or internal market analys
es. But most of it will be external, including:
web-based directories and resources
nonprofit agencies
government agencies (try www.fedstats.govfor access to 70 government sites with
valid stats and information)
back issues of magazines and newspapers at the library
However, analyzing secondary data can sometimes be overwhelming, and your result
s can end up inaccurate or inconclusive. It may make sense to use the knowledge
gained through secondary research to guide your decisions regarding primary rese
arch or even to hire an outside consultant to do the analyzing for you.
Primary Research
You can think of primary research as getting down to the nitty-gritty.
Primary research is conducted to get really intimate with your market, to answer
specific questions you might have or address specific areas of focus. It costs
more and often takes longer to conduct than secondary research, but it gives con
clusive results.
Primary research can be broken down into two subcategories:
Qualitative research includes studies done on smaller groups of people, like one
-on-one consumer interviews or focus groups. It's meant to give you direction, t
o get an answer to a particular concern or question--not to make predictions.
Quantitative research includes studies done that result in a large amount of dat
a-like surveys. This type of research is statistically valid and can be used to
make predictions.
About Surveys
Surveys are a type of quantitative primary research that aim to collect specific
data from a sample audience.
Surveys can be administered via email, snail mail, or phone, and usually target
customers or potential customers.
There are four steps to attacking a survey: identifying your audience, writing t
he survey, conducting the survey, and analyzing the data collected.
When you write the survey, keep the questions simple, but be very specific. Also
, including a "reward" for completing the survey--a promotional product or coupo
n of some sort--is a good way to increase participation.
Although it is possible to conduct a survey completely in-house, your best bet w
ould be to outsource the survey conducting and data analyzing to a research firm
that conducts surveys as part of their business.
About Focus Groups
Are you developing a new product? Embarking on an advertising campaign? Interest
ed in assessing your customers' needs beyond simple questions and answers? Here'
s where focus groups--a type of qualitative primary research--can help.
Focus groups are typically composed of about 10 pre-screened people that meet cr
iteria you specify. They are assembled in one room--either on your site or offsi
te--to discuss and react to a specific topic relevant to your business.
Meeting offsite has its advantages; facilities designed for focus groups usually
have access to cameras to tape the session. Some also have one-way mirrors to t
he participants can be observed.
The discussion is guided by a moderator. You can either hire an outside moderato
r or assign the role to someone in your organization--but keep in mind that he o
r she can't participate beyond moderating.
Focus groups are helpful because the participants can be probed for the reasonin
g behind their opinions, and conversations can be generated around a particular
topic--giving you what's known as "rich data" as opposed to, for example, the fi
nite answers you get from survey questions.
It's best to hold at least two sessions in order to arrive at any sound conclusi
ons.
Survey Costs
Survey prices will range depending a number of factors, including whether you pu
rchase a mailing list, who designs the questions for the survey, what communicat
ion channel you use to send the survey, and how you want the results analyzed.
Costs are also dependent on the incidence rate, or the number of surveys that ne
ed to be sent (or calls that need to be made) in order to get a response. For ex
ample, if you send 100 surveys and 10 people respond, your incidence rate is 10
percent.
Phone. Phone surveys can cost anywhere from $5,000-$15,000. They typically cost
an average of $40 per interview (or person surveyed).
However, this per-interview price can increase or decrease according to the succ
ess of responses. The fewer the responses, the higher the price. For example, if
only 50 percent of the list responds, you'll pay a little more than $40 per int
erview.
Mail. Surveys via snail mail will run close to the price of phone interviews, us
ually about $5,000 to $7,000 for 200 responses.
E-mail. E-mail surveys are becoming more popular because their costs are lower-about $3,000-$5,000.
Costs are lower for two reasons. First, postage isn't a concern. Also, email has
a higher incidence rate, since the option to answer questions on participants'
own time makes them much more likely to respond.
However, a word of caution: Using email for surveys limits your population to th
ose with e-mail access (currently about 40 percent).
Options for Cutting Survey Costs
To save some cash, design the questions for your survey in-house. Also, if you h
ave a ready-made list of recipients (say a list of registered users on your webs
ite), you can avoid the cost of purchasing a mailing list (usually five to fifte
en cents a name, which can get pricey).
And certainly consider email as opposed to snail mail. You don't have to pay for
printing or postage, and the response rate seems to be better.
Focus Group Costs
Prices for focus groups can range from $4,000 to $6,000 per session if you outso
urce to a company that runs focus groups. Since it's recommended that you hold a
t least two sessions, that price can be a little hefty.
But there are ways to save. You don't have to outsource every aspect of a focus
group (facility, moderator, recruiting, and script). If you come up with the scr
ipt of questions for discussion yourself, don't hire a professional moderator, a
nd use a conference room in your office as opposed to an outside facility, you c
an cut costs almost in half.
However, recruiting is the one area where you don't want to cut corners. The tim
e spent recruiting eligible participants can be more than you want someone in yo
ur office to spend, especially if your guidelines are strict. For example, findi
ng cell phone owners may not take much time, but if you want to find cell phone
owners that have dogs, that will take a bit longer.
Participants also need to be compensated for their time, either with cash or a r
eward of equivalent value (stock options, a gift certificate). For a two-hour se
ssion, you can expect to pay $35 to $50 each for consumers, $50-100 each for pro
fessional level individuals, and $100 to $150 each for executives.
Secondary Source Costs
Many published reports and resources can be found at your library and online for
free. Just make sure that the information you're using isn't outdated.
Some analyst reports run as low as $250, but most of the well-known research fir
ms charge at least $1,000 for their reports.
Mie-Yun Lee is the founder of BuyerZone.com, the leading online marketplace for
business purchasing. The site features extensive buying advice and a free Reques
t for Quotes service for more than 100 common business purchases ranging from ph
one systems to forklifts.
hem know your interests as well; if you and your contact share many of the same
interests, it will strengthen your relationship. Don't forget that your passions
are your most important interests. A passion is something you love to do, somet
hing you could do all day long without encouragement or prodding from others.
Networks
A network starts with any group (formal or informal), organization, institution,
company or individual you associate with for either business or personal reason
s. Most business people have a broad network of contacts. The question is, how w
ell cultivated are those contacts?
There's an old saying that goes, "It's not what you know but who you know." Well
, I believe that it's not "what you know" or "who you know"--it's "how well you
know them" that makes a difference. Each of us has sources in abundance that we
don't effectively cultivate. Each member of your network is part of several othe
r networks; each of your prospective sources is connected, directly and indirect
ly, with hundreds, even thousands of people you don't know. If you can tap the r
esources represented by your network of contacts, you can significantly increase
your return on investment in networking.
Skills
The more you know about the talents, abilities and assets of the people in your
network, the better equipped you are to find competent, affordable services when
you or someone you know needs help. Think about what you do well and identify t
he special skills you have; exchanging this information will help business relat
ionships grow as well.
Recording the GAINS You Discover
There are several ways to gather information about these five topics from your p
rospective network members or anyone else you deal with. To do so, you should li
sten, observe, ask questions, review written material, ask others and of course s
hare your GAINS.
To help you in this process, use the form at this URL to complete your GAINS Pro
file and the GAINS Profile of people in your network that you would like to know
better. If you think that getting to know the GAINS of the people you deal with
is too easy and you need a greater challenge, take the quiz at this URL to test
your knowledge of each member of your network:
As you discover the GAINS of the people you're interested in, keep a record; oth
erwise, you're likely to forget important information. Use the GAINS Profile (or
whatever database you utilize) to record the facts you learn about your most im
portant contacts. Spend more time with the people you already know, particularly
with those you believe you want to know better. Concentrate on learning these f
ive essentials--their goals, accomplishments, interests, networks and skills. Fi
nd overlapping areas of knowledge and interest. Make sure you give back the same
kind of information. The more they know about you, the faster your name will co
me to mind when an opportunity arises in which your products, services, knowledg
e, skills or experience might play a part.
Ivan Misner is co-author of the New York Times bestseller Masters of Networking.
He is the founder and CEO of BNI, the world's largest referral organization wit
h more than 2,400 chapters in 13 countries around the world. He also teaches bus
iness courses at California State Polytechnic University, Pomona, and resides in
Southern California with his wife and three children. Dr. Misner can be reached
at misner@bni.com.
18 million impressions. I also did a tour for eBay's Business and Industrial Pr
oducts that reached more than 6 million listeners.
DWJ Television in Ridgewood, New Jersey, specializes in satellite TV media tours
and offers similar services. For tours shot in a studio, the two-hour cost for
a dozen interviews is $15,000, plus your spokesperson's fees.
Your broadcast spokesperson should work with you to develop a "news hook" so you
'll gain the most interviews possible. You should expect your company to receive
at least one or two mentions per interview, and the spokesperson must be adept
at bringing interviewers back to the key messaging points no matter what questio
ns are asked. He or she should have excellent on-air skills, be unflappable, and
be able to deliver the same message in different ways, once every 10 minutes fo
r several hours.
To find a celebrity spokesperson, visit hollywood-madison.com. For a technical e
xpert, author or academic, visit a site designed for journalists, www.profnet.co
m.
Quick Pick
Have your marketing campaigns been less than successful lately? Signing up with
a Web-based service such as Respond Networks can be helpful in matching buyers w
ith your business's products or services.
All you have to do is provide some information about what your company offers, t
hen sit back as targeted pre-qualified buyers' leads are sent to you via e-mail.
You can even set up filters or establish special offers to customize the servic
e.
For more information, contact Respond Networks or any of its open network affili
ates, such as Lawyers.com, Lycos or Verizon; a full list of contacts is also ava
ilable online. Price: $30 per month, plus various per-response fees that range f
rom 50 cents to $5.
-Steve Cooper
Contact marketing expert Kim T. Gordon (author of Bringing Home the Business) at
www.smallbusinessnow.com.
(percent by category)
Source: The World's Best Known Marketing Secret
In addition, take a look at a book I co-wrote with Robert Davis entitled Busines
s By Referral: A Sure-Fire Way to Generate New Business. On pages 23 26, we talk
about some of the payoffs of networking based on a survey of more than 2,000 bu
siness professionals in several countries.
I believe that we will eventually see more quantitative research done on the ROI
of networking and word-of-mouth marketing. It is clearly one of the most cost-e
ffective ways to build one's business, and the more research that is done, the m
ore evidence we will have to support that.
Ivan Misner is the founder and CEO of Business Network International (BNI), whic
h has more than 2,700 chapters throughout the world. He is also the author of fi
ve books, including his New York Times bestseller, Masters of Networking, as wel
l as Entrepreneur Press' forthcoming Masters of Success.
ferrals? People who show the most motivation, right? It's been said that the bes
t sales characteristic is enthusiasm. To be respected within our networks, we at
least need to sell ourselves with enthusiasm. Once we've done an effective job
of selling ourselves, we'll be able to reap the reward of seeing our contacts se
ll us to others! That's motivation in and of itself!
4. Trustworthy. When you refer one person to another, you're putting your reputa
tion on the line. You have to be able to trust your referral partner and be trus
ted in return. Neither you nor anyone else will refer a contact or valuable info
rmation to someone who can't be trusted to handle it well.
5. Good listening skills. Our success as networkers depends on how well we can l
isten and learn. The faster you and your networking partner learn what you need
to know about each other, the faster you'll establish a valuable relationship. C
ommunicate well, and listen well.
6. Networks always. Master networkers are never off duty. Networking is so natur
al to them that they can be found networking in the grocery store line, at the d
octor's office and while picking the kids up from school, as well as at the cham
ber mixers and networking meetings.
7. Thanks people. Gratitude is sorely lacking in today's business world. Express
ing gratitude to business associates and clients is just another building block
in the cultivation of relationships that will lead to increased referrals. Peopl
e like to refer others to business professionals that go above and beyond. Thank
ing others at every opportunity will help you stand out from the crowd.
8. Enjoys helping. Helping others can be done in a variety of ways, from literal
ly showing up to help with an office move to clipping a helpful and interesting
article and mailing it to an associate or client. Master networkers keep their e
yes and ears open for opportunities to advance other people's interests whenever
they can.
9. Sincere. Insincerity is like a cake without frosting! You can offer the help,
the thanks, the listening ear, but if you aren't sincerely interested in the ot
her person, they'll know it! Those who have developed successful networking skil
ls convey their sincerity at every turn. One of the best ways to develop this tr
ait is to give the individual with whom you're developing a referral relationshi
p your undivided attention.
10. Works their network. It's not net-sit or net-eat, it's net-work, and master
networkers don't let any opportunity to work their networks pass them by. They m
anage their contacts with contact management software, organize their e-mail add
ress files and carry their referral partners' business cards as well as their ow
n. They set up appointments to get better acquainted with new contacts so that t
hey can learn as much about them as possible so that they can truly become part
of each other's networks.
Do you see the trend with these ten points? They all tie in to long-term relatio
nship building, not to stalking the prey for the big kill. People who take the t
ime to build their social capital are the ones who will have new business referr
ed to them over and over. The key is to build mutually beneficial business relat
ionships. Only then will you succeed as a master networker.
Ivan Misner is co-author of the New York Times bestseller Masters of Networking.
He is the founder and CEO of BNI, the world's largest referral organization wit
h more than 2,400 chapters in 13 countries around the world. He also teaches bus
iness courses at California State Polytechnic University, Pomona, and resides in
Southern California with his wife and three children. Dr. Misner can be reached
at misner@bni.com.
You can even contribute to your favorite charity while adding nothing to your gi
ft budget at sites such as GreaterGood.com, where you can shop from more than 10
0 leading online merchants, including Sharper Image, L.L. Bean and Harry and Dav
id, and up to 15 percent of your purchase costs will go to the charity of your c
hoice. You can support the Humane Society, The Nature Conservancy or Special Oly
mpics, for example, or you can enter a specific organization in GreaterGood.com'
s database and search to see if they are affiliated. What better way to share th
e holiday spirit?
Kim T. Gordon is an author, marketing coach and media spokesperson-and one of th
e country's foremost experts on entrepreneurial success. Her newest book, Bringi
ng Home The Business, identifies the 30 "truths" that can make the difference be
tween success and failure in a homebased business. Kim offers one-on-one coachin
g by telephone to motivated individuals, providing practical marketing advice an
d budget-conscious strategies unique to your business. To receive free how-to ar
ticles and advice, get information on coaching and appearances, read a book exce
rpt, or contact Kim, visit http://www.smallbusinessnow.com, a huge site devoted
exclusively to marketing your small business.
ferent than a kit for potential clients. Although a press kit should be comprehe
nsive, every promotional item or piece of marketing collateral ever produced by
a company should not be included. Only put information that is current and most
relevant to your target reader. When targeting media editors, be respective of t
heir time.
Here are some ideas about what to include in your press kit. Of course, this is
a comprehensive list and intended only to provide ideas for what is needed for y
our target audience. Do not include all of them in your press kit.
1. Letter of introduction: Sometimes referred to as the pitch letter, this first
impression item is where you will grab or lose the reader's interest. Tell them
upfront why they should care about what you're telling them. Provide a table of
contents or a brief description of the items enclosed in the actual press kit.
Let them know you are available for follow-up interviews and questions. Also mak
e sure to include your contact information in this letter.
2. Information on the company: This includes your company's history, a company p
rofile, and profiles of the chief officers, senior management and ownership. Inc
lude bio sheets, if appropriate.
3. Product and service information, including a product, service or performance
review: This will let editors see what others are saying about you or help the e
ditor write his own review. This should also be supported with product or servic
e fact sheets, sell sheets or company brochures that are specific to your produc
t or service.
4. Recent press publications and articles: Copies of recent press coverage is ve
ry appropriate for a press kit. After all, what other media have done will be of
interest to current media targets. This can include article reprints and printo
uts of online press that a company might have received.
5. Press releases: Many times, these are what instigated and caused the printing
of the articles described above.
6. Audio and video files of radio or TV interviews, speeches, performances and a
ny other media-covered event: Hard copies will suffice if the actual media is no
t available. Today, some companies are now putting online audio clips on their W
eb pages and in online media kits.
7. A sample news story: This is your chance to guide the media or your reader. S
ome editors will even print it verbatim, as they view ready-to-print articles as
an easy way to fill up space with little effort on their part. They do, of cour
se, usually edit these stories, so be prepared.
8. Since many media kits are put together for investors, any news related to the
industry, financial statements or any other investor-related news is very appro
priate for the press kit.
9. List of frequently asked questions: This helps the editor determine what ques
tions to ask you in an interview or what to include in the article.
10. Other items to include:
Nonprofit and community-service involvement
Recent awards
Photos (if appropriate)
Factual background material and/or white papers
Specific information and schedules of upcoming promotions and events
Significant statistics specific to your industry, demographics and target audien
ces
Feature article material, such as articles written by company officers or senior
management
Missions, goals and objectives
Samples or examples
Camera-ready logo art
Giveaway information
An order form
The Key to Getting Noticed
Busy editors sort through piles of press kits each day. Getting your press kit n
oticed is the key to publication and action! Remember, getting attention is impo
rtant not only with audiences, but also with editors. Package your materials in
a unique way and make sure the materials are presented professionally.
It's also crucial to follow up to make sure your intended recipient received you
r press kit. Plus, follow-up calls provide the perfect opportunity for editors t
o ask questions or schedule an interview. Use this opportunity to build relation
ships with editors--in fact, doing so will improve your chances of publication o
r acceptance by your intended audience. But because the distribution of media ki
ts can get a little expensive, you've got to make relationship-building a part o
f your marketing strategy.
The best thing to do right now is to start assembling part of your press kit, ba
sed on available materials. Then, add to it as you see fit and develop new mater
ials. You don't want to create a press kit at the last minute for the editor, in
vestor or potential client who requests one.
The challenge is to put it together on paper, electronically or both. There is a
trend now toward online media kits. A lot of these items can be developed for o
nline distribution; it's just a matter of putting what you already have online o
r onto letterhead and fact sheets.
Typically, the media kit doesn't have to be as fancy as people think. Those requ
esting media kits just want information--not necessarily glitz. See what items y
ou already have and then work on the rest.
Alfred J. Lautenslager is an award-winning marketing and PR consultant, direct-m
ail promotion specialist, principle of marketing consulting firm Marketing Now,
and president and owner of The Ink Well, a commercial printing and mailing compa
ny in Wheaton, Illinois. Visit his Web sites at http://www.market-for-profits.co
mand http://www.1-800-inkwell.com, or e-mail him at al@market-for-profits.com.