Welcome to the glitzy world of marketing communications. You have zillions of options, and lots of glitz from which to choose. You can easily spend lots of time and energy on this phase of the sales process, which is driven primarily by your marketing communications.

You'll find, in fact, that this is the largest section of this book. Using media well takes a lot of knowledge, practice, and courage. Yes, that's right. It takes courage because you're going to find a lot that you try doesn't work. And you'll have to muster up the energy to go at it again. And again. And again...

Advertising, and all forms of marketing communications, should be constantly tested, evaluated, refined, and retested, if you really want the lowest costs and the best return. This is one of those areas in marketing that if you don't evaluate it carefully, you may make some very costly mistakes.

But alas, in spite of the real issues one should look at regarding marketing communications, most people simply get caught up in the sex appeal of it all. If you observe most entrepreneurs, this is where they spend most of their time, energy, and money.

Unless you are brand new in business, you may find opportunities outside the realm of traditional marketing communications that have less hassle, and less cost. But you just may have to give up some of the sex appeal as well. Because, my dear reader, you probably can redirect much of your time and money into other phases of the sales process, stuff you'll learn about later in this book. So don't be fast to jump -- just because this section deals with something you are aware of, and think you can handle. This is only one of five phases of the sales process.

Using Media To Make Money

You’re probably constantly barraged by advertising reps from the newspaper, radio, TV, magazines, etc. representing their unique "opportunities." They all have great reasons why you should buy their media over others. Sometimes they’re right but many times they’re not.

Determining where to best invest in advertising or how to target a public relations campaign is often a difficult decision, and it’s becoming more difficult every day with the plethora of new media available.

Add to that the fact that you have a finite amount of cash to work with, and you have a new set of considerations.

All too many media decisions are made for the wrong reasons. Whether it’s due to lack of knowledge, over-enthusiasm for a product or concept, or just trying to take shortcuts so the advertisers can get to market faster, the result is always the same: Failure.

And, as you probably well know, if you’re reading a book called Marketing Without Money, you probably don’t have the time, energy or money to fail even at the little steps along the way.

But you hold the key—self-education. Learn everything you can about each area of marketing—before you start making a plan or commitments to a marketing communications program. That doesn’t mean a fast read over this or other material. You should prepare your marketing plan based on solidly researched facts, not your gut feel or your spouse’s best guess.

Using media to reach, educate, and persuade your prospect to choose you as a supplier can significantly reduce your costs of sales—if you choose the media appropriately.

In this section, you’ll learn to simplify the decision making processes on where, when and how to advertise. But first, you must understand more about media, advertising and public relations and how they can be used effectively for your organization.

Frequency, media mix, and testing are stressed throughout and cannot be overemphasized.

To make any type of marketing communications work for you, you must first understand your market and the media that best reaches that market. Next, you must understand that to produce the best results you must plan a long-term program, not just an ad here or a PR story there. Although measurable results are often achieved in the first stages of a campaign, research indicates that most purchases are made after the buyer has had nine impressions of your company or offer. In other words, frequent exposure to your marketing communications will produce a greater increase in sales and reduce your relative communications expenditures.

The trick is to use the right media in the right way. That’s a tough judgment call for inexperienced media buyers.

Before you begin, consider that each type of media, in general, reaches a different audience and accomplishes different tasks. The following information gives you a general overview of various media. It provides the basis from which to begin the development of your marketing communication programs. If a specific media does not fit your target market, then, for the time being, eliminate it from any further research.

When used correctly, direct mail allows you to target very specific markets and it provides you with exact statistics as to its effectiveness. Studies show that with direct mail to pave the way, close ratios for sales staff can increase as much as 450 percent, and sales costs may be reduced up to 25 percent.

When you’re marketing without money, direct mail is especially good, since you can create an inexpensive letter/telemarketing campaign that can be implemented at whatever rate your budget can afford. If you only have $50 per month to spend, invest it wisely by mailing 100-150 well-crafted letters to a highly qualified target market. Then follow up each with a phone call. This approach yielded a new website development company about 10 qualified leads per 100 mailed.

The potential down side is that direct mail can be more costly per contact than other media. If you’re doing large complex mailings, it may require a long lead time, and the mechanics of production and distribution can be cumbersome.

In general, direct mail is one of the most valuable marketing tools you have at your disposal. But like any good tool, you need to understand its function — and its limitations. Direct mail is only one of about one hundred common marketing tools available to you. And even though it’s powerful, direct mail shouldn’t be the sole marketing tool you use — it simply can’t do everything necessary in a good marketing program. But it is very effective in the partial or complete implementation of many of your marketing strategies. For instance, it’s a great lead generation tool for outside salespeople or professional service firms. It’s also an excellent method to stimulate traffic at trade shows or events.

Yet, direct mail has been labeled 'junk' all too often. It usually wins that dubious title by being poorly targeted and poorly executed. So don't make those mistakes. Pick up a copy of my 2 hour video, Power Marketing Through Direct Mail [call (800) 989-8112 for details] if you'd rather invest your money in learning skills than making mistakes.

When it comes to marketing, we see a plethora of new media. When just 10 or 15 years ago we may have had the choice of a newspaper or two, and possibly a TV or radio station or two that would reach our market, we’re now inundated with options. It’s nice to have options, and it’s nice to have variety. But frequently it hurts, not helps, your market planning.

This abundance of media often makes it extremely difficult to reach your target market with any real penetration or frequency. When your prospect’s attention is tugged this way and that by such a variety of newspapers, magazines, TV programs, radio broadcasts, and the Internet, it’s tough to stand out from the ‘noise’ with any advertising that is effective.

Direct mail can eliminate media fragmentation altogether. Depending on your target market, you may be able to get your message to nearly your entire target universe. And, once the mail arrives, you (assuming you’ve done a good job in the execution of your mailing program) can have the recipient’s undivided attention. They don’t have a clicker in hand, or buttons on the radio to push.

If you buy your lists well, everyone you reach will be a prospect for your products or services. With other media, it’s likely that only a fraction of their entire audience represents your market.

Another powerful reason to choose direct mail is the ‘recall factor’. Because it’s not competing with so many other ads, editorial messages or programming, it makes a more lasting impact on the recipient. As an example, an ad in a newspaper will only have about a 15% recall factor compared to a direct mail ad that boasts a 52% recall.

There are a variety of studies on the effectiveness of direct mail. And the numbers shift some from time to time with the shift in the way we do business, but the following figures will certainly eliminate any fears of everything being trashed — without even being opened.

Studies indicate that 49% of executives read all the direct mail they receive. 79% say they read some. And, 75% of consumers say they read all their mail.

In a recent study by the distinguished advertising firm of Ogilvy and Mather, International, they found that 90% of all executives make one or more purchases per year through direct mail offers, and most make nine.

Consumer studies indicate that 15% of all consumer purchases are made as a result of direct mail offers, however, this figure could shift substantially in coming years with the increasing use of electronic media.

But direct mail, although it’s one of the most powerful media you may choose, has many parts and should be studied more thoroughly before embarking on a direct mail campaign.

With direct mail, you’ve got lots of options. Direct mail programs come in all sorts of sizes and shapes from simple postcards to four-color mailers, to specialty gifts and advertising pieces to screen printed T-shirts, to calendars, to just about anything you can imagine. You don’t have to utilize expensive materials to make your program work.

Consider using one or more of the following when you create your campaign, or, use your imagination and develop some really unique promotional pieces.

• Newsletters Personal letters

• Postcards Invitations

• Video Disk brochures

• Circulars Catalogs

• Line cards Spec sheets

• Telegrams Calendars

Remember, each type of promotional material is designed to fill a specific task. A brochure, not written specifically to illicit a direct mail response, would likely be a waste of money to use in such a fashion. Couple it with a well written sales letter, however, and it has the potential to succeed.

If you are targeting a vertical market, trade magazines can be fantastic for several reasons. Number one, trade publications are usually easier to work with from a public relations perspective. They'll publish newsworthy information that is of interest to their readers, and they'll frequently entertain using feature articles you've written, sometimes providing space for a regular column.

In addition, many trade publications will make their mailing list available (for a fee of course), and some even offer periodic card deck mailings which are inexpensive and can help you generate leads. In general...

...Trade publications will reach a specific vertical market well. They are typically less expensive than consumer publications. Because their readership is easily identified, results are easy to track.

Trade publications can offer an inexpensive advertising route if they reach your target market, and can be especially good to use in a public relations push.

Since the publication is directed at only one industry group, however, it does not allow for random feedback about your market. If you have not correctly identified that industry as a prospect for your product, your advertising dollars may be wasted.

If your market caters to consumers, you may find specific magazines that will help you reach that market. Unlike trade publications, consumer magazines are less likely to publish features or press release information you send. But if you are sure you've targeted well, and if you have something truly unique to tell them about, give them a try.

In general, consumer magazines frequently have a large circulation and generally cater to a specific type of audience. The demographic breakdown of this audience allows proper analysis and placement of print advertising.

Advertising in consumer magazines often requires a long lead time. Because they can have very large circulations, the initial capital outlay for ad development and space can be considerable. The best results will probably be obtained only through frequent insertions.

Radio has possibilities beyond that of just advertising. Currently there are about 1000 talk radio stations around the country. Each of which needs guests, sometimes daily. Being a radio guest can be extremely valuable to your reputation and lead flow, especially if you are equipped to do business in the market in which that particular show broadcasts. But even if you aren't, radio interviews will help build your confidence and credibility, so you may wish to pursue them anyway. Talk radio show lists are available commercially, so they can be easily targeted.

In general, radio is a personal medium that is flexible and can target particular audiences well. As an audio-based medium, it involves people emotionally. It can obtain a high contact frequency at a relatively low cost.

Because of the multiple number of stations, audiences can be fractionalized. There is no guarantee of how many people your message may reach. Radio tends to be a background medium and, consequently, it can be difficult to get the attention of the listener.

Radio listeners tend to be average in income and education. They are typically younger than newspaper readers. It’s weak in the direct response category, but good for creating awareness and credibility.

The once revered newspaper has so much electronic competition that readership of the typical paper variety is dropping. Innovative publishers are offering more of their information services electronically via CDs for one’s computer, or through electronic information services like CompuServe or America Online or their own website.

The Sacramento Bee is one of the more innovative newspapers in its effort to stay on top of consumer trends and technology. They offer a Bee Line, which is an integrated voice information system which allows you to get certain types of information by phone. For instance, you may be traveling to Chicago and wish to know the weather there. You call the Bee Line, punch in a code for Chicago weather, get played a recorded commercial, then get your weather report, and voila, you've just been exposed to part of the new breed of newspaper advertising. In addition, the paper also offers expanded articles more comprehensive what is printed in the paper. Simply call their fax on demand number, enter in the number of the article you want, and poof, just like that the expanded article is sent directly to your fax machine.

In general, newspaper advertisers can present their products and company’s benefits in-depth. They effectively reach the better-educated, upper income audience that wishes to stay informed. Results can be measured effectively using coupons or other coding, like a unique extension, or a person's name, in ads. They don't have to really exist, but someone asking for that extension or person will allow you to track your exact results from different sources.

Newspaper circulation is dropping, however, consequently ad costs are increasing. Newspaper ads tend to be read only by current subscribers, and that limits an advertiser’s expansion.

This medium typically does not generate a high direct response, but is very effective in developing credibility and brand awareness.

Television is in the midst of the same electronic evolution affecting other media. With more satellite communications and literally hundreds of choices of programming, it’s a nightmare to try to place TV commercials that will be effective.

But, TV is a highly credible advertising medium, and with the plethora of satellite TV, cable, and a host of new broadcast stations, TV is more affordable than ever before. TV generally reaches more prospects per dollar than any other media. An advertiser can target a particular bulk audience to generate optimal product response.

Although TV is very effective per dollar spent, an effective local campaign on broadcast TV may cost as much as $10,000. To test TV's effectiveness for your situation, look for small, local cable networks. The entry costs are much lower, and in some cases, the cable company will allow you to package your TV ads with billing inserts to reach the same audience again. They’re pretty reasonably priced, and fairly easy with which to get started.

Production for a 30-second spot can run from $300 to $7,500+ depending upon the product and image the advertiser wishes to project. The educational process regarding production and buying time, can be confusing and time consuming for the novice TV advertiser.

The yellow pages directory, distributed to nearly every household and business, offers good local coverage. Yellow pages advertising is easy to buy and runs uninterrupted for one year. Ads can provide comprehensive information about your products and business.

Because of the duration of the advertising contract advertisers cannot change their appeal to feature different products or services. It can also be very competitive. Large ads dominate, and those with smaller ad budgets may suffer as a result.

With the average outside sales call costing over $350, and the average qualified trade show lead costing $142, trade show leads cost some 70 percent less to close than other ways of marketing.

And, 84 percent of all trade show attendees have buying power!

The trade show provides a forum in which a complete sales presentation can be made to many highly qualified prospects. In fact, because a show enables marketers to "show and tell" so well, over 50 percent of all trade show leads don’t require a follow-up sales call to close, as the chart on the next page indicates.

But, all too often businesses exhibit in a trade show without clear cut objectives, a solid sales presentation, a pre-planned follow-up program, and a realistic expectation about the results.

Before entering a show, determine why you are going. Are you looking just for sales? Do you have new products or services you want to test market? Does top management need firsthand feedback from their market on the company’s products and services?

Before you attend your show, fine-tune your sales presentation. You’ll want to be able to qualify prospects quickly, provide succinct product information, and define specific follow-up activities if the prospect doesn’t buy on the spot.

When pre-planning your follow-up activities, be sure you have the infrastructure in place so you’re able to process all inquiries efficiently and frequently enough to generate as many sales as possible. A study of leads from trade shows found that two-thirds of the purchases made took place 11 to 24 months after the initial trade show contact. Thus, a well designed, long-term follow up program will help you optimize results.

If you are marketing to businesses or consumers, this is probably your most untapped source for leads and sales!

With the endorsement of an association, or group, you can achieve high inquiry rates often in the 25 percent to 30 percent range, as opposed to the average one percent achieved on "cold" direct mailings.

Many of these associations are nonprofit organizations. Consequently, if they can find ways to create member loyalty, entice new members, or make some money, they are usually more than willing to listen to your proposal.

That proposal may come in many forms, depending on the results you seek. You may ask them to analyze and review your product and submit the review for publication. Publicity from a third-party source that is respected in the industry can be very valuable.

Some associations will actually offer your products or services, much as a wholesaler would, in a regular distribution channel. They may sell directly to their membership. Or, you may wish to simply buy (or partner for the use of) their mailing lists so you can target your own mailings.

It’s an excellent idea to attend association meetings of groups who typically buy or recommend your products or services. You can often get an opportunity to be a guest speaker at one of their meetings.

You’ll find most all trade and professional associations listed in the National Trade and Professional Association (NTPA) directory usually available at a good local library.

Use Worksheets 15 through 19 to help you organize information for your sales program.

Networking is simply a matter of getting out, on a regular basis, to meet people who can help you promote your business, or who will do business with you directly.

There are lots of ways you can do this, but the key to your success depends on the exact same things that brings success in any media -- selecting the target well, and frequency of communication.

In other words, select your networking functions with care. Choose only those functions or groups that represent or influence your target market. Then, plan on attending those functions, or group activities regularly. As in any function of marketing, this is a process, not an event or two.

You'll find regular networking organizations in some markets, like LeTip International, a membership group which is organized for the sole purpose of members helping members get leads and sales. And of course there are Rotary Clubs, Chambers of Commerce, professional associations, community associations, etc. You have lots of options when it comes to networking, and this truly is one of the best ways to market without money!

Other media options include directories, coupon books, etc. And then there's high tech....

Table of Contents l Next - Chapter 2: Phase 1 of the Sales Process: High Tech Media