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Levels of New Market Development

A. Passive

Passive here means broad spectrum media ads which stimulate the front runners - who are the gasoline for the engine of the movement of any new product from “new” market development until it becomes a commodity. These are the TV or newspaper ads that stimulate enough people to act. This stimulus/response takes a little selling, but, is a lot easier than direct sales, and is a little harder than merchandising commodities.

B. Active

This is direct sales. Direct sales means that you called (or mailed to) them directly and went for a “yes” or “no” without them being predisposed in the first place. Direct sales is the most difficult to achieve, but is also the most rewarding when successfully accomplished. Because price is not an object.

For example: Media ads for new windows - Once there is an inquiry, a professional sales person is sent to “close” a sale. This is a skilled and highly paid professional. But even harder and more high-paying is the non-response selling of a new product or service. Getting an appointment on a new product (generating leads) is a chore in itself.

Secondly, sales of perceived value are lower in close rates than media response leads, but the control of the number of responses and sales is much greater. You are not dependent upon as many exterior conditions being favorable (seasons, inflation, etc.).

Mail order also falls into this last category. To be “good” at marketing any one of the above levels does not necessarily mean much with the other categories. Do you have inexpensive “passive” promotions? If you are selling an unknown product or service, are you describing what “problem” you are going to solve, or, how you are going to enhance their life from the status quo?

Daniel Wadleigh is a nationally published marketing consultant and has programs for start-up and existing businesses including effective web sites, e-mail/database, other non-internet ways to drive them to your website, and low cost ways to get more new customers.

Go to: http://www.more-new-customers.com to get free copy of “Marketing to Men vs. Women- the 8 different responses” and a Free copy of “Market Research- 7 Questions to Ask to Start-up and 7 to Ask to Improve Any Business.”

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Whoever is in control of sales to the end-user is the real one in control. A contractor can switch distributors and/or manufacturers instantly and likely not suffer much, but the “buck stops here” on the shelves of distributors if the ones who sell to end-users go elsewhere to buy product. That is why you see wholesalers and manufacturers going direct, to control and protect.

However, you can’t have your cake and eat it too. You plan your act and act your plan. Once manufacturers and distributors lose the trust of the contractors, they’d better be prepared to take on a complete reversal of their method of distribution. It’s also hard to get the contractor-customers back after stiffing them. The point is, he who controls distribution flow to the end can do a lot of things later. The development of customer base and/or credibility in a market region is expensive, painful, time-consuming and is to be treasured, not taken lightly.

Also, the development of this trust/value, perceived by end-users, can be utilized in at least three major ways that are all too often overlooked:

A. Referrals - As previously described in detail, you must pay to develop leads. Referral leads have the highest close rate and are the least expensive to generate. “Mr. Jones, since we have to pay to advertise, we’d rather pay you, our valued customer, than the commercial ad industry. We’ll reward you with a ____ for each customer that you bring us who buys a ______.” You have to give them an incentive of meaningful value. It’s the least expensive, most profitable way to generate income because you are using an asset that you have already paid for - your trusting customers. If you don’t do this, assuming that you are able, then you are costing yourself money that somebody else (who knows how to market) will eventually earn.

B. Secondary Markets - It’s the same story, once you have a network. It’s like a funnel that you can pour more goods and services through. If you sold them a widget, assuming that they are happy about the value, go back and sell them another kind of widget or a service contract for either a widget or for a totally different concept - whatever can fit your business style.

Some of the new types of services can be handled by sub-contractors. Again, you have lower lead costs and commissions, and you are building more protection by broadening your bag of tricks. Be careful not to over-extend and lose control of quality and service, because dependability is by far (according to the consumers) the number one criterion in contractor choice, over both price and product. Again, if you can and don’t, it’s costing you.

C. Premium Networking - Encourage other companies to offer a discount on your product or service as a premium for doing business with them. “Buy from us and get a 10% discount on __Company’s widget.” This gives you free advertising access to an established customer base and no effort to promote or close. Again, this kind of customer can be developed for referrals and secondary markets. Have your network partner explain that the customer can save 10% on your widget because of your savings on advertising costs.

Educate, justify, explain and offer a discount. If it costs more, explain why higher quality is worth more (justify); if it costs less, explain why higher volume allows for less cost (justify). Educate them as to why it costs more and they will appreciate the extra value. The value of anything is what somebody is willing and able to pay for it. The value is not the price you put on something, it’s what the market accepts; educate them as to why your “higher than average” price has superior quality and you will get your price and profit.

You must break the concept that it’s apples-to-apples in value against a lower priced equivalent in order to justify your price. Are there secondary products or services that you can sell to your existing customer base? Which other businesses can generate leads for you by offering a discount on your service - and vice versa?

D. Media Advertising - Once you have created the best possible ad, using the tools in this manual including the Market Research section, and then testing it on a few people, you need to find out which media is most productive. Later you will want to fine-tune to become cost-effective. But, to start, you need to run the ad on one medium. Radio is a medium that is easy to get quick responses from.

Assuming that you have a “direct response” ad as opposed to an “image enhancing” ad, monitor the responses. After monitoring the responses, change the ad a little and run it on a different radio station. Monitor the results again. Keep running your best ad to keep the business coming in, always monitoring and testing to maximize results. Don’t become satisfied with any ad until you know that it draws as much as possible. Watch other ads on television. If one gets repeated often, it’s because it works. Then, try your improved ad on other media - the Sunday paper, television, whatever your budget will allow. This approach should have been already budgeted for in any start-up business, or, for any individual campaign. Television is best used for products/services that have visual impact value.

The next step, after getting past break-even, is to test additional ways to generate business. Don’t wait for the bottom of a cycle to try something new. You should test during the good times in order to have a managed income condition. Panic is the wrong circumstance under which to look for something to do. If direct mail, e-mail or telemarketing are possible avenues for your business, test as quickly as possible.

E. Seasonal Campaigns - Be it Christmas, end of the tax year, weather or the Spring-Fall buying sprees, you need to prepare. If you fail to plan, you plan to fail. These are “pre-disposed” buying conditions. This is when “sale” or “special pre-season” offers attract the pre-disposed buyers. As covered in the “Promotions” section, you need to appeal to their sense of belief in your sensible offer. They don’t want to be deceived, but, they do want a truly good deal. All the studies and my own experience say that they will pay more to get more. It’s your job to make sure that you get in front of them and have the best “more” available.

Daniel Wadleigh is a nationally published marketing consultant and has programs for start-up and existing businesses including effective web sites, e-mail/database, other non-internet ways to drive them to your website, and low cost ways to get more new customers.

Go to: http://www.more-new-customers.com to get free copy of “Marketing to Men vs. Women- the 8 different responses” and a Free copy of “Market Research- 7 Questions to Ask to Start-up and 7 to Ask to Improve Any Business.”

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Understand Hierarchy

Before beginning the designing process, it’s a good idea to outline your key message points. Understanding what you want your audience to hear or see first will guide content placement, size, color, etc.

Reflect your Prospects’ and Company’s Personality

It’s important to know your target market in the minutest detail their wants, problems, needs, and interests. Your communication pieces, therefore, should reflect your understanding of your prospects’ personalities.

This can be accomplished in many ways such as choosing the right paper (size, weight, color), fonts (for example formal fonts for wedding invitations; ‘childlike’ fonts for a day care center sign), size, and language (apt buzzwords). Traditionally, more upscale offers have uncluttered designs with plenty of white space while discount offers are just the opposite you can fill them up with graphics and words.

Color

While excellent marketers understand that effective use of color is elusive, they follow a few fundamental rules.

As you probably expect, there is plenty of scientific research on all aspects of color that is which ones are considered most attractive or eye-catching; what feelings certain colors inspire; or which colors are easiest to see. After sifting through the mounds of information the following tips were echoed repeatedly:

These four colors were symbols for the following:

Red: action, emphasis, recall, excitement
Yellow: happiness, sunshine, attention-getting

Green: reassurance, security, stability
Blue: order, tranquility, coolness, relaxation

Use these findings to guide your choices for instance, dentists should consider painting their walls a lovely shade of blue! Also, test your own color instincts, and those of friends and family, to find out what works best for you

A “quick printer” conducted a recent study in Cleveland, Ohio. He tested different color reply cards (identical wording and offers) for his in-house mailers. Surprisingly, the pink postcards resulted in the highest response rates!

Artwork and Graphics

Visual images are simple, yet widely effective ways to communicate a lot. Trite phrases such as “a picture is worth a thousand words” are certainly overused because they continue to “ring true”.

Your artwork will help you:

Tell a compelling and appealing story
Symbolize your company’s values and culture
Evoke important feelings
Explain your product/service
Itemize key points

Thus, visually pleasing communication is important and can increase your chances of capturing your prospects’ attention. Here are some tips for ensuring that it does:

1.Take your time while creating or choosing your artwork. If it’s rushed it shows. Great photography and graphics are affordable and easy to find on the internet. Check out these three: www.indextock.com; www.corbis.com, and www.fotosearch.com.

2.Make sure your artwork is compatible with your company’s and target market’s personality

3.Do not create an ad where your artwork overpowers your content, headline, product, etc. Yes, it should be noticeable and “tell your story” not be “the story”

4.Your artwork should increase the odds that your message will be notices, even to casual readers or viewers.

5.Don’t waste money investing in unnecessary, and often distracting, “pizzazz” - you know, graphics that flash, move around, dance, etc. They increase costs substantially and result in negligible or negative reactions.

6.Find ways to reuse photos, illustrations, testimonials, and blowups again. This will save you money and if they continue to work, why change?

Fonts and Typefaces

What exactly is a “font”? Simply put it is the specific traits (size, intensity, and typeface) for letters, numbers and symbols (that is, characters). “Typeface” is a subset of font and refers only to a character’s design (e.g. Times New Roman, Helvetica, Verdana). The right font will make your copy easier to read, create harmony with your artwork and graphics, and be reflect your company’s and target market’s personalities.

Choosing the right font can be daunting particularly given the sheer number of choices. However, let the following general tips guide you:

1.”Sans Serif” fonts are easier to read because they leave more “white space”.

Tip:

Serif: little decorative “doolollies” (adornments, flourishes) on the ends of the characters

Sans: Means “without”

Some popular “sans serif” typefaces are: Gautami, Microsoft Sans Serif, and Arial. I also like Verdana.

2.For a more traditional look you’ll want to consider using “serif” typefaces such as Times New Roman, Century Schoolbook, and Garamond.

3.While it’s okay to vary font styles within a piece, try not to use more than two. Also, if you decide to try different fonts mix choose one of each - sans serif and serif. The contrast will result in an “eye pop”.

4.When choosing size, italics, and bolds keep readability in mind. This doesn’t have to be a major pain in the neck! Look in your own magazines, newspapers, and direct mail copy styles that you find appealing, easy-to-read and in keeping with your company’s tone and feel.

AVOID:

- Reverse Type while it works well for eye-catching headlines, it’s harder to read and tough on the eyes. Use sparingly

- Overdoing italics, underlining and capitalization it looks unprofessional.

- Fonts that look typeset (making them fuzzy). They should be clean and crisp.

Mary Eule specializes in helping small and medium-sized businesses get and keep profitable customers. Formerly a Fortune 500 marketing executive; founder of two successful small businesses and award-winning speaker, Ms. Eule is President of Strategic Marketing Advisors, LLC. and co-author of a new book, “Mandatory Marketing: Small Business Edition”. She holds a master degree in marketing from Johns Hopkins University. Log onto http://www.StrategicMarketingAdvisors.com for free articles, newsletter and helpful tools, tips and templates.

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