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By "From The Minds Of Wharton"
Published: February 16, 2010
Updated: February 28, 2010
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The Best Defense Is A GREAT offense. Time To Take The Offensive…
One of our clients just started his business roughly one year ago. He complained that his competition had been around for a lot longer and people already knew their name and location. So this is why he wasn’t able to get more customers for his business.
We recommended that he shut down his office and get out of business immediately. Needless to say he was somewhat surprised. We explained to him that just because a business has been around for longer doesn’t mean that it is better. Just like in the story of David and Goliath, his business could overcome the bigger, older more established competitor. All he had to do was strike right at their weakest spot…their marketing.Realize that today’s consumer is exposed to over 3,000 advertisements each day, making it difficult for any business to rise above the “clutter” and be noticed. Prospective customers are living busier lifestyles and aren’t using traditional media like newspapers, yellow pages print directories and magazines as they did before.
The business marketplace has changed and what once worked isn’t working as well anymore. As a result, smart business owners are adapting by focusing their marketing on reaching their best prospects, the people who are most likely to buy from them.
Well a lot of the older companies are stuck in the past. Still placing ads in yellow page print directories, newspapers, coupon mailers, non-compelling direct mail pieces, radio, etc. in the hopes that as long as they “weather the storm”, their declining revenues will somehow bounce back. As you probably guessed, they’ll be waiting a long time. You have to reach modern customers in new ways to get good results.
It’s much smarter and more effective for you to leverage the INTERNET, TECHNOLOGY, AUTOMATION and OURTSOURCING to optimize your marketing efforts! You must utilize time-tested business proven strategies combined with the New Rules of Marketing and Sales to get the results that you want. Because the rules have changed! This means using search engine optimization, search engine marketing, social media marketing, email marketing and other forms of internet marketing while leveraging conventional mediums such as TV advertising, unconventional direct mail campaigns, billboard advertising, voice broadcasting and mobile advertising (text message advertising) into your internet marketing campaign. Doing so will increase your marketing results not merely exponentially rather geometrically.
From The Minds Of Wharton
Wharton Business Foundation
www.WhartonBusinessFoundation.com
(888)4-WHARTON (494-2786) ext.17
info@whartonbusinessfoundation.com
By "From The Minds Of Wharton"
Published: February 16, 2010
Updated: February 16, 2010
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Before the 1980s, selling was simple because the marketplace was a lot less crowded. There was less competition, fewer choices, and not much information available to a customer. If you wanted a Chevy, you’d simply go to the Chevy dealership and get one. There weren’t 6 dealerships to get a Chevy from, 5 magazines rating the different Chevys and 12 websites giving feedback and surveys on the various makes and models of Chevys. Nope, there was just one dealership. So it was easier for customers to make a buying decision. “In the days of simple selling, the seller had the power because the buyer had very few choices.”
Now we’ve got a new situation, there’s now increased competition, information, choices and more buying resistance. Buyers have access to a tremendous amount of information about a product or service. Buying cycles are longer. There’s now price competition that didn’t exist before. “Now buyers have the power because they have more choices and access to more information.”
Adding to this is “The Carbon Copy Scenario” (see our other article). This is the consumer’s inability to determine whether any of the companies they’re considering are any different, better or worse than any of the others. Since all of their marketing is underdeveloped, underleveraged and essentially says the same thing, the only difference the customer can determine is…the price!
As a result, many business owners are forced to compete on price, which is always a losing proposition. Compounding the situation, their marketing strategy doesn’t address “The Buyer’s Spectrum” (see our other article) and “The 6 Stages Of The Customer Buying Cycle”. Since they lack effective follow up systems, the majority of potential new customers are lost to their competitors.
We’re going to discuss the 6 stages of the customer buying cycle and how it affects you.
When someone decides they are going to buy something, there are 6 stages that they go through before they make their purchase. These 6 stages are: Interest, Options, Research, Decision, Exclude & Purchase
Stage 1) Interest: Prospective client has an interest (need or want).
Stage 2) Options: Prospective client starts to consider various solution options & gathering information on an informal basis. They also ask friends & associates for referrals. Solution options consist of other options other than hiring a company that does what you do (ex. they can do it themselves, hire a new employee to do it, buy a product that claims similar results, etc.).
Stage 3) Research: Prospective client does heavy duty research.
Stage 4) Decision: Prospective client makes the decision to buy your solution yet not necessarily who to buy it from.
Stage 5) Exclude: Prospective client shops and compares different vendors (you and your competition). Then they wait for the timing to be just right.
Stage 6) Purchase: Prospective client chooses a vendor and buys! Money changes hands. Understand that without realizing it, you’ve been losing out to your competition at stage 5 of the customer buying cycle. If you’re marketing doesn’t make you stand out from your competition, if it’s saying the exact same thing that their marketing is saying, then you too are FORCING your prospective customers to make their decision based on price.
To fix this, your marketing must demonstrate that you are clearly SUPERIOR to your competition. It should clearly articulate why you are better, how you are better and provide actual proof. When done correctly, you can even charge more than your competition…and actually get it! It will cause your prospective customers to conclude, “I’d have to be an absolute fool to do business with any else except you regardless of price.”
From The Minds Of Wharton
Wharton Business Foundation
www.WhartonBusinessFoundation.com
(888)4-WHARTON (494-2786) ext.17
info@whartonbusinessfoundation.com
By "From The Minds Of Wharton"
Published: February 16, 2010
Updated: February 16, 2010
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Whether it’s GE or Motorola, in manufacturing, Wal-Mart or Home Depot in retailing, or Southwest Airlines in the service sector, thriving businesses and their employees are practicing ten key essentials. We call them the ten commandments of speed. They are:
1. Focus On The Customer – They sign everyone’s paycheck.
2. Get In Step With The Future – This is where opportunity lies.
3. Be An Innovator – In this era of rapid change, continuous improvement through innovation is king.
4. Do It With Quality – It lowers costs, increases speed, builds pride and improves customer loyalty.
5. Get Rapid, Accurate Feedback – Know what your customers, competitors, employees, suppliers and the market are doing. Ignorance can be fatal.
6. Ability Means Agility – Be flexible and quick to respond and adapt.
7. If It Doesn’t Add Value, Don’t Do It – Any job or activity that doesn’t add value is creating needless overhead. Don’t do it.
8. Build Teams Not Empires – Cross functional work teams make better faster decisions than bureaucracies.
9. Lifelong Learning Is Everybody’s Job – If you want to stay in business in a rapidly changing world, learn how to learn and keep learning.
10. Just Do It Now! – Set challenging deadlines that force that make yourself and others to use time in the most efficient and effective manner.
In business, speed is your trump card. It raises revenue, lowers costs, complements quality, overcomes competitors, customers love it and it’s absolutely necessary when growing your business to the next level. The most cost effective ways of implementing these strategies is to effectively leverage outsourcing, technology, automation and the internet.
From The Minds Of Wharton
Wharton Business Foundation
www.WhartonBusinessFoundation.com
(888)4-WHARTON (494-2786) ext.17
info@whartonbusinessfoundation.com
By "From The Minds Of Wharton"
Published: February 16, 2010
Updated: February 16, 2010
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Before becoming our clients, many business owners tell us…“The economy is bad. We’re not getting business like we used to. We have a customer problem.” We tell them “You don’t have a customer problem. You have a MARKETING PROBLEM.”
Think about it. Most businesses never even come close to gaining even 1% market share (for example, if the potential customer market in an area is 1 million potential customers, 1% would be 10,000 customers. Most businesses don’t even come close to this). So ask yourself…“Did people suddenly stop needing and buying what I sell?”
OF COURSE NOT! Even if a small portion did, there’s still a tremendous amount out there that are still buying what you sell. They’re just buying it from someone else!
Why Are They Buying From Someone Else?
It’s simple. Many business owners don’t know how to market their business properly. They either don’t have the time to learn how (and then do it) or they let advertising sales people make their decisions for them.
One of the keys to successfully marketing your business is consistency. You must consistently market your business to both your potential customers AND your existing customers. In our industry, it’s known as TOMA (T.op O.f the M.ind A.wareness). To give you some idea of what TOMA is, if you were to buy a pizza who would you buy it from? If you were to sell your house, who would you give the listing to? Whatever your answers are, those businesses have TOMA with you. The moment your potential customers think about buying what you sell, youwant them to think of you in the same way.
The next key is to find effective ways of consistently “touching” your prospects month after month that will maintain TOMA with them. These are called follow-up systems. Follow up systems consist of: email newsletters, email blasts, auto responders, voice broadcasting, fax blasting, direct mail and text message blasting. All of these systems are very inexpensive to employ yet are very effective in maintaining TOMA.
By consistently marketing your business to both your existing and potential customers through follow up systems, you’ll get the lion’s share of business. Leveraging technology, automation and outsourcing is the proverbial ‘stone’ that your small business can use to defeat the larger and more powerful Goliath.
From The Minds Of Wharton
Wharton Business Foundation
www.WhartonBusinessFoundation.com
(888)4-WHARTON (494-2786) ext.17
info@whartonbusinessfoundation.com
By "From The Minds Of Wharton"
Published: February 6, 2010
Updated: February 8, 2010
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When asked how today’s turbulent business world is affecting his life, a corporate CEO replied, “I sleep like a baby. Every three hours I get up and cry.” Sweeping changes are drastically changing the playing field and the rules for success in business. What’s causing it? In a word, technology. Speed gives you the initial edge in the market. Technology is shrinking time and space, giving customers more choices and businesses more competition with less time to respond. If you acknowledge the results of technology, you have taken the first step to a successful future. Yet if you ignore it, you’re courting economic disaster.We’re going to share with you how to get better, faster results in a business world where swift, unpredictable change has become the status quo. What you need to know and practice can be summed up in one word – SPEED.
1) Speed reduces risk. The faster you can meet a customers wants the less likely they are go to your competition.
2) Speed increases revenue. Customers willingly pay PREMIUM prices for faster service.
3) Speed increases market share. Promising and delivering fast service can capture BIG market share.
4) Speed and quality go hand in hand. The fastest way to fulfill an order is to do it right the first time.
5) Speed increases efficiency.
6) Speed shrinks expensive inventory costs and the need to rely on market forecasts.
7) Speed improves morale.
8) Speed creates an innovative edge.
9) Speed pays even when things go wrong. 70% of customers who complain will do business with you again if you resolve their complaint to their satisfaction. Yet if you resolve it on the spot, 95% will do business with you again.
In short, success in today’s rapidly changing business world requires moving quickly and reaching customers in new, innovative & more effective ways. It means a whole new focus & approach to marketing, selling, working, etc. to speed up your business & increase your profits.
