Chapter 2. Lead Generation:
Phase 1 of the Sales Process 
© 2002 - Jody Hornor
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In This Chapter:
--Using Media to Make Money
--High-Tech Media
--Media Stats: What Works
--Buyer Behavior Patterns
--Media Without Money
--Advertising vs. PR
--Book Table of Contents

High-Tech Media: The Marketing Superhighway

Media is evolving. This means sticking to traditional media or using media in traditional ways can leave you looking for profits.

This electronic age has caused other things to change. The Sears Catalog, once an institution in this country, has seen it’s demise, as will many of the traditional ‘catalog’ approaches. Instead, you’ll see more interactive shopping programs, more catalogs on CD or digital video instead of the old ‘paper’ varieties, and you’ll find the entire shape of marketing changing.

The advances in technology will influence the nature of how we all do business, big company or small. And, you’ll see as we delve further into the topic of using technology in marketing, there may be good reason, even for your small business, to abandon traditional media and methods for a more modern approach.

Using technology in marketing is absolutely necessary. For even if your competition isn't using it now, they're investigating it and will soon employ its vast possibilities.

In fact, when I do seminars around the country, everyone wants to know "what's new in marketing?" Well, what's new is technology. And although using technology can play an integral part in keeping costs down and results up, there's no magic to technology in and of itself. It is a tool. You have lots of tools from which to choose. None will do you any good unless you truly learn how and when to use them. Then, you must use each tool to help you fulfill a critical part of the marketing process.

There's no magic to the Internet. But it's a great tool.

There's no magic to interactive disk presentations -- but if used properly, they can increase leads and sales substantially.

So for the purpose of knowing what high tech tools are available to you, and how they might be included in your marketing plan, let's look at the shopping list.

  • Fax

  • Email

  • Internet

  • On-hold Marketing

  • Multimedia Disk Brochures

Each of these can have a very useful part in your marketing program. None will create positive results without a well-thought-out function they will serve in your marketing program.

But let's take a look at each and at some of the possible applications for which you might find them useful.

FAX Broadcast

Fax has gotten far more powerful since its capabilities have been automated. Broadcast fax allows you to communicate your faxable message to anyone in your database, directly from your computer, with the push of one button (well, maybe a couple). You can sort and select recipients based upon unique factors like the city they live in, their preferences as to brand names, or any other data you store. That way, you can create specific and highly targeted promotional pieces, newsletters, price lists, or other information and fax it to them over night.

Be cautious about broadcast faxing to 'cold' lists, or individuals who have never done business with you. It may be illegal, so check before you leap! The Attorney General of Florida was quick to correct my mistake with a 'cease and desist' letter about using the practice there.

Broadcast fax, on a small scale (up to about 500 pieces per night) can be handled from your personal computer with a $79 piece of software called WinFax Pro from Delrina. Large scale broadcasts would be best handled by a service bureau.

Internet, World Wide Web & Other On Line Services

"Build it and they will come." The movie Field of Dreams surely made that line famous. And entrepreneurs have been hoping it would be true since the beginning of commercial trade.

There are companies making millions of dollars in sales every year on the Internet. But most aren't.

The Internet has fabulous possibilities to help you expand your business internationally, reduce marketing communications cost by offering a depth of information on-line, and it opens up to you a world of research that is hard to fathom.

But the reality is that just because you have a "home page" on the Internet, doesn't mean you're going to get anyone to visit it! You must promote the use of your home page through all your marketing communications, networking, and other activities, and then, when you have educated enough people to start looking for you there, can you consider the Internet a viable communication tool.

It is a fact that a home page doesn't cost much to have on the Internet (World Wide Web is more accurate). The Web seems to be the new media with the most sex appeal. Consequently, everybody's racing to get on.

I encourage you to do so, but with reasonable expectations. You'll need a good "home page developer" to create your page, an "IPP," Internet Presence Provider, providing server (computer) space for your home page, and an ISP, or Internet Service Provider if you want to have access yourself (and you will). And, you'll need a well-thought-out plan to make this a profitable tool.

Disk Brochures & Catalogs

Paper is fast becoming obsolete, and far less effective in this world of video, TV, Internet, and all the glitzy animation and special effects that add "sizzle" to all of them. I know, you're comfortable with paper fliers and brochures. And maybe you even know a little about page layout and design so you can keep your costs down. That's all well and good, and you may well use many of the traditional 'paper' marketing communications tools in your marketing mix, but consider some facts about CD's and disks as marketing communication media.

First of all, let's do a comparison of potential results from different kinds of media you may have used or with which you are at least familiar.

Direct mail -- traditionally a paper brochure, letter and reply card, catalog, or similar type of configuration -- usually with one or more "paper" elements.

If you've used direct mail, or heard people talk about response rates, you've probably seen numbers like 1% or 2%. As I state these "average response rates," you must understand that they are only a basis of measurement, and don't tell you anything about the true success (or failure) of a direct mail program. Your cost per inquiry, and ultimately your cost per sale are the true success indicators.

Anyhow, let's take the 2% figure, and compare it to response one might get from using video as the tool, instead of a printed message. Voila, response rates can soar up to 20%. Now, try a multimedia disk mailer -- response can jump up as high as 50%. Now mind you, the medium you choose doesn't mean a thing if you have a poorly selected list or poorly crafted message. But assuming you've done well in these areas, look at the amazing difference in response.

Now, I know what you're thinking "I can't afford to develop videos or multimedia disks." That may be true. These tools may be difficult for you to capitalize at the moment, but their cost-effectiveness may be far better than other methods if you look at overall results. Besides, I'd be remiss as an educator if I didn't at least bring them to your attention.

In addition to higher response rates, people tend to spend much more time with interactive disks. Compared to 2-3 minutes they'll spend with a paper brochure (if they're really interested in your products or services), on average, those who pop a disk into their computer spend 20 minutes with it! And about 20% of them will spend over 30 minutes with it. In other words, you have a far better chance of selling your products or services when they spend that much time learning about them. And interactivity is really enticing. Even those old fashioned direct mailers who still use paper have used interactivity very successfully for years.

Remember the stickers you have to find and attach in your Reader's Digest Sweepstakes? How about the stickers of the "red" car instead of the blue one so you can be sure to win the car of your choice (yea right!)

Anyhow, interactivity is a winner -- using any medium!

Multimedia Presentations

Giving talks to groups is a great marketing tool that costs nothing. And sometimes you'll even get paid! Multimedia presentations can make you appear more credible and more powerful. Even if you're an inexperienced speaker, and can keep your audience glued to your message.

You'll either have to learn how to develop these on your own (don't you already have enough hats?), or you'll have to work with a multimedia developer.

You'll probably also have an investment in a lap-top computer and perhaps a projection system. But alas, as with disk presentations, you should take a close look at this media.

Any tool, high-tech or otherwise, will cost you money if you don't invest the time and energy into learning about it and how to best use it. And, it's worthless unless it serves a specific function within your marketing strategy and process.

Part of the success you’ll find in marketing and some of the ways you'll save hundreds, even thousands of dollars in promoting your business, will depend on your ability to integrate numerous high-tech and low-tech tools that, when combined in a well-developed strategy, will help you achieve a better result faster. A complete list is available on the web, or pick up a copy of my first book, Power Marketing for Small Business, or the audio program, Power Marketing Tools for Small Business. But as I said earlier, understanding marketing, and especially the process of marketing, is far more important to you in the long run than any single tool.

Table of Contents l Next - Chapter 2: Phase 1 of the Sales Process: Lead Generation - Media Stats - What Really Works & Why


Clip articles on different technologies. Review them as necessary when you're looking for new ways to become more efficient and effective. INC Magazine is a great source for current information on business technology.


"In the future there will be two kinds of businesses - ones that use technology, the others will be out of business."
Business Marketing Magazine

In a conversation between grand dad and grandson just after television was invented and was the latest rage, the grandfather asked his grandson, "Which do you like better, television or radio?" Without hesitation, the grandson replied, "Radio, Grandpa." Why?" Asked the grandfather? "Because the pictures are better," replied the grandson.


Be sure your website address is on all your marketing communications -- business cards, letterhead, in all ads and press releases, etc.


"A recent study of advertisers found that 84 percent envision using interactive media in the future -- a 10 percent increase from the previous year."
Wahlstrom & Company
In Sales and Marketing Strategies & News

"High-equity companies were much more likely to obtain the desired behaviors from their stakeholders...they simply 'spoke louder' through advertising and other communications.
From a study by Yankelovich, Skelly and White
for Fortune Magazine


When you decide on what media you’re going to use, you must remember how people learn.

I asked a gray-haired lady attending one seminar how she learned her ABCs. She thought for a minute then said "beans." "Beans?" I asked. "I’ve never heard of that, how did you learn your ABCs with beans?"

"My mother would dump out dried beans on a table," she said. "I made the letters out of dried beans."

Moving through the generations represented in that seminar room, a baby-boomer responded that "flash cards" was her medium.

Next, a young woman in her twenties responded with Sesame Street. And finally, a young mother jumped in to let us know that her child was learning her ABCs with an interactive software program on their home computer.

To be effective, you must match the medium with the method accepted by the target market. You must adjust the media chosen when the demographics and psychographics of your target market shift (after all, we all grow older).


 

"I read but one newspaper and that more for its advertisements than its news."
Thomas Jefferson


 

Order media kits for all newspapers, magazines, and other media you think will reach your target market. Match up the demographics of your target against the overall reach of the media. Does a large enough percentage of its reach really get to your decision makers to make it cost-effective?


Use statement stuffers to communicate with your market. Approach a non-competing organization that reaches your target market and ask if they'll allow you to enclose statement stuffers in their regular statement mailing.


Hold seminars or group demonstrations at events or co-op partner's facilities.

 

Resources:
Glossary of Terms
Ad Examples with Analysis
Free Analysis of Your Ads or Brochures
AdFacts Tutorial - online
this runs really slow online unless you have a high speed connection. You can download it below.

Downloadable Files 
( right click and save to your hard drive)

AdFacts (download - rt click)

FREE Downloadable Worksheets 
You MUST sign in to have access to these -- once you've signed in, bookmark the page from which you download to avoid having to sign in every time you access them.

Marketing Plan Worksheet 
Demographic Profile Worksheets
Psychographic Profile Worksheets
Marketing Budgeting Worksheets
Ad / Brochure Development Worksheet
Follow-up Worksheets
Sales Reporting Worksheets
Proofing Checklists
Budgeting Worksheets (Excel)
and many more!

       
 

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© 2003 Karen Fraser-Middleton