Leveraging Your Marketing $ - part one

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="133285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>Highland Llamas</B></FONT><B>    </B><B> |     </B><A HREF="index.htm" TARGET="_top" TITLE="Highland Llamas"><B>home</B></A><B>         </B><A HREF="id48.htm" TARGET="_top" TITLE="Published Articles"><B>Published Articles</B></A><B>          </B><B> </B><A HREF="id57.htm" TARGET="_top" TITLE="Marketing"><B>Marketing</B></A></div> <div> <B>Leveraging Your Marketing $ - part one</B>   |   <A HREF="id62.htm" TARGET="_top" TITLE="Leveraging Your Marketing $ part two">Leveraging Your Marketing $ - part two</A>   |   <A HREF="id80.htm" TARGET="_top" TITLE="Distributing Your Llamas">Distributing Your Llamas</A>   |   <A HREF="id59.htm" TARGET="_top" TITLE="Advertising Today">Advertising Today</A>   |   <A HREF="id63.htm" TARGET="_top" TITLE="Making Your Advertising $ Count">Making Your Advertising $ Count</A>   |   <A HREF="id81.htm" TARGET="_top" TITLE="Promoting a Stud Before He Comes of Age">Promoting a Stud Before He Comes of Age</A>   |   <A HREF="id64.htm" TARGET="_top" TITLE="Farm Ranch Displays">Farm & Ranch Displays</A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="132d2c00dkelyh.png"> <div> <I><B>Covers marketing attitude, why people do what they do, and the marketing concepts not taught in business schools.</B></I></div> <bR> </td> <td valign="top" height=390 width="100%" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I><B>Leveraging Your Marketing $ - part one</B></I></div> <div> <I><B>by Dan and Marilyn Milton</B></I></div> <bR> <div> <I>This two part series discusses an approach to leveraging your marketing dollars based on common sense and practical experience.</I></div> <bR> <div> <I><B>Part One</B></I><I> covers marketing attitude, why people do what they do, and the marketing concepts not taught in business schools.</I></div> <bR> <div> <I><B>Part Two</B></I><I> covers the most common marketing mistakes we make, and how to avoid them.</I></div> <bR> <div> Some will say, "There's nothing new here. I already know all this stuff. It's common knowledge among us <I>experts</I>." With all due respect, those that do will probably never comprehend a very simple, fundamental truth. And that truth is that marketing is what happens while you are being <I>good</I> to your customers. Besides:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">What could be more gratifying than fulfilling someone's needs?</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">What could be nobler than telling the truth about your service?</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">What could be more satisfying than making money at the same time?</div> <bR> <div> These marketing concepts, or building blocks, provide the foundation for the <I>leverage</I> needed to multiply the productivity of your marketing dollars. We are talking about promotion, motivation, acquisition of customers, and the reselling of these customers over and over again--leverage from the original marketing investment that will generate a steady stream of income year-after-year.</div> <bR> <div> The marketing concepts and mistakes discussed apply to the provision of any service (breeding, boarding, training, etc.) or the sale of any product (llamas or alpacas, tack, memorabilia, etc.). To simplify the presentation though, our discussion will concentrate on the marketing of llamas and the marketing of breeding services, two areas that we are very familiar with.</div> <bR> <div> <I>This article contains both the authors' personal experiences and the experiences of others; what was done right and what was done wrong, what produced results and what failed. The authors will reveal the thinking behind their marketing decisions.</I></div> <bR> <div> <B>Marketing Attitude</B></div> <bR> <div> <I>"Whatever the mind can conceive, and believe, it can achieve." ... Dr. Napoleon Hill</I></div> <bR> <div> Let us illustrate what we mean by <I>attitude</I> with the following story:</div> <bR> <div> <I>A young man drives into a small town. He spots a little old man by the side of the road selling watermelons. He pulls over, stops and asks this old man, "Tell me about the people in this town, I'm thinking about moving here." This little old man does not have much formal education--is just wise.</I></div> <bR> <div> <I>This old man said, "How were they where you came from?" The young man said, "People there were arrogant, close minded, suspicious, no one believed in anything. Every time you went out you just hated yourself for going out. You wanted to stay in the house all the time. They steal from you, cheat you, lie to you, and would not pay you what they owed you. They make promises and do not keep them. They do not stick by you."</I></div> <bR> <div> <I>The little old man looked up at him and said, "Son that's exactly how the people are here!"</I></div> <bR> <div> <I>Another young man comes into town and this same little old man is there by the side of the road. This young man pulls up, jumps out, runs up and shakes this old man's hand and says, "My name is Jimmy Smith and I've lived a number of years in New Jersey and I wanted to come down here. I heard that everything is great here and I want to know how the people are."</I></div> <bR> <div> <I>The little old man said, "Son, how were they where you came from?" The young man said, "Why they were just the best people. They were so nice. They were so kind. I hated to leave because they were so good." The little old man looked up at him and said, "That's just the way they are here son. You are mighty fortunate!"</I></div> <bR> <div> We have to get our attitude right before we can get our marketing right.</div> <bR> <div> <B>Why People Do What They Do</B></div> <bR> <div> There are four reasons why people do what they do. This has been thoroughly researched and is well documented. Everything we do is for profit, protection, pride or pleasure or a combination of these. In everything we ever buy, sell or trade we are motivated by one or more of those four reasons--why we wear the clothes we do, why we buy the car we do, why we are marketing our breeding services or why we are in the llama business.</div> <bR> <div> When we know the customer's motivation, the reasons that will cause positive or negative responses to our offer, we know how to present our service in terms of one or more of those positive reasons.</div> <bR> <div> By understanding what makes people tick, why they do things, life gets simpler and better. It is easier to achieve a win-win situation. Once we know which of the four reasons are behind someone's motivation, we make our own luck.</div> <bR> <div> <I>"Luck is preparation and opportunity meeting at the crossroads."</I></div> <bR> <div> <B>MARKETING CONCEPTS</B><FONT SIZE="3" COLOR="#000000" FACE="Arial" > </FONT><B>NOT TAUGHT IN BUSINESS SCHOOLS</B></div> <bR> <div> <I>Marketing</I> is the energy, or life force, that fuels every business. It brings people in, it replenishes them and it sustains them.</div> <bR> <div> <B>Marketing is THE Financial leverage</B></div> <bR> <div> When you run a magazine advertisement or send out a direct mailing it costs you "x" dollars whether it generates a single or a multiple sale or one, two or five breedings. If you are currently generating only one breeding from an advertisement that costs you $1,000, and using the proper techniques will generate five breedings from that same $1,000, your leverage is 500 percent.</div> <bR> <div> A perceptive question you might ask yourself is, "Can I get an advertisement or mailing to produce five times greater yield for the same cost?" The answer is a resounding yes! Simply test different headlines, body copy, themes, basic propositions, and offers. Very carefully analyze the results each advertisement generates (something few ever do). You will know immediately which offer produces more.</div> <bR> <div> It costs the same fixed expense to run an advertisement or to send out a mailing whether or not the advertisement or mailing produces one sale or five or one breeding or five. It costs the same to market the service whether the breeding fee is $500, $1,000 or $1,500. With good marketing, you can get two or five times greater yield for your marketing money. It costs you the same to capture a customer whether the purchaser:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">breeds one female, multiple females or brings the same females back year-after-year to rebreed</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">buys one animal or multiple animals, or comes back each year to buy additional animals</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">brings back a female purchased from you to breed to your stud year after year</div> <bR> <div> The real function of marketing is to attract customers you can <I>annuitize</I> for yourself--keep them coming back year-after-year. You bring potential customers into your sphere of influence, then you never let go of them, figuratively speaking, so you can extract perpetual business from them. Most people do not know how to <I>ethically</I> exploit their customer potential. They understand very little about how to bring them in, and they do not know what to do once they get them.</div> <bR> <div> The biggest investment a breeder makes is to gain the customer. Once you do that, the cost of reselling them over and over again, assuming you deliver a quality and convenient breeding service is small.</div> <bR> <div> <I>There is a story about a little guy that dropped into the corner drugstore. He got on the phone and said, "Is this such-and-such grocery store?" And the reply was, "Yes." And he said, "I would like to apply for the job as your delivery boy." And the reply to him was, "We have a delivery boy." "Do you have a </I><I><U>good</U></I><I> delivery boy?" "Yea we got a good delivery boy." "Are you sure you got a good delivery boy, cause I think I could replace him?" "No we got a good delivery boy." And he said, "Thank you sir" and hung up the phone. One of the guys sitting at the counter there said, "Hey young man don't you work down at that store?" He said, "Yes sir." "How come you are calling up and applying for a job?" He said, "Sir, I'm checking up on myself!"</I></div> <bR> <div> How good are we doing in checking up on ourselves? This is the only way we will know if we are delivering a quality and convenient breeding service or follow-up service for the animals we sell.</div> <bR> <div> <B>People Want to Understand more About What You Are Offering</B></div> <bR> <div> When you educate your customers objectively, without the <I>hard sell</I>, your sales will increase. Think about your own experience. When you consider purchasing an animal or contracting for breeding services you often do not know as much as you would like to. And, if you have unanswered questions, you are less likely to shell out the money to purchase the animal or contract for the service.</div> <bR> <div> Yet, for example, when a provider of breeding services takes the time and initiative to educate you objectively about the stud, and his offspring, the provider gains your trust and favor immediately.</div> <bR> <div> Your reaction to being educated is not unusual. Education is an essential marketing technique. Educate your purchasers and breeding service users about everything. This one concept--educating your customers--will gain you a dramatic advantage over your competitors.</div> <bR> <div> For some inexplicable reason we all forget the big investment made to gain a <I>customer</I>. When we get five potential users to call us about breeding services, whether they contract for services or not, there's a cost of acquisition. By their call, they have said, "Your breeding service interests me." They want us to acknowledge them, to communicate with them, and to develop the relationship.</div> <bR> <div> <B>Advertising is Salesmanship</B></div> <bR> <div> As obvious as it should be, few really understand this basic concept. Prepare magazine and direct mail advertising in the same demanding way you would pitch a prospective purchaser of your animals or user of your breeding service. Each advertisement should make a complete and compelling case. The advertisement should also advocate your offer to the prospect in an educational, informative, and factually supportive way.</div> <bR> <div> <I>Advertising creates a sense of value</I>--the readers' perception of value. A classic example of this is women's cosmetics--the contents of which cost only pennies.</div> <bR> <div> Many marketers scorn long, "reader-type" advertisements and opt for short, abstract, <I>cutesy</I> advertising. Remember that advertising is salesmanship. Would you stop your presentation to a prospect in mid-stride? Would you make less than a complete and compelling case for your offer? Would you not ask the prospect to make a buying decision--to act, if you will? Would you be flippant, cute, or ambiguous in the way you communicate with the prospect? Of course you would not!</div> <bR> <div> Nine out of ten businesses do not use <I>headlines</I> or opening sentences, to state their sales pitch, in their magazine advertisements or direct mail pieces. A headline or opening sentence is "the advertisement for the advertisement" and is 80% of its success or failure. It gets the person to read the advertisement.</div> <bR> <div> People want to buy if they are told in advance that what is being advertised is something that they really might consider buying. It opens their minds--puts them in a ready state to decide. By just giving information they do not perceive that they are expected to buy.</div> <bR> <div> When someone begins reading an advertisement, they should know it is an advertisement. They have already made the decision that they are at least willing to read it, which means you have screened out all the other people who are not.</div> <bR> <div> In preparing your advertisements, test your headlines and copy. If you do not, you may be losing as much as <U>ten times</U> the number of potential customers you can sell or contract with. It is also essential to test your prices constantly--and sometimes, the more successful price is a higher one.</div> <bR> <div> What advertising vehicles should you use for testing? Use small segmented direct mailing. Direct mail is very good, because you can inexpensively test a small microcosm. Another cost-effective means is to try out various advertisements in local association newsletters.</div> <bR> <div> <B>No One Appreciates What You have done or Will Do for Them Unless You Tell Them</B></div> <bR> <div> A frequent marketing mistake is the failure of breeders to educate their customers about the unique advantages offered them. If you offer breeding services and your stud has had more than fifty offspring with no birth defects and each has been an improvement on their mothers, let your prospective customers know it. Perhaps your guarantee covers more situations than your competitors. Your customer will not know that unless you tactfully point it out.</div> <bR> <div> Most breeders do not <I>distinguish</I> themselves. They do not give the marketplace any definitive reason for patronizing them, and they do not ask the market what it wants in the perception of value or benefit.</div> <bR> <div> Virtually no one in business realizes how much trust and <I>persuasive power</I> they have over their customers if they just exercise it. Customers want to be led. Just offer them alternatives that are better, or cut their costs or even provide them profit.</div> <bR> <div> Develop the customer's appreciation for what you do, even if what you do is the same as everyone else. By you telling it first, the customer will see you as being so much more qualified.</div> <bR> <div> <B>Reverse the Risks When You Make a Sales Proposition</B></div> <bR> <div> The purchaser always sees the risk being predominantly borne by him--not the seller. If you remove that obstacle and assume the risk for the purchaser, you gain a notable advantage.</div> <bR> <div> <I>Risk reversal</I>, is placing the risk on the seller rather than the purchaser. 99% of businesses lay the risk on the poor customer. Always assume 100% of the risk, by a no-strings attached, money-back guarantee. Then there's no impediment to a positive decision. To do this you must have confidence that you can stand behind your guarantee.</div> <bR> <div> Most providers de-emphasize the guarantee. If you emphasize the guarantee and give the purchaser something valuable as a bonus, you will probably get the sale.</div> <bR> <div> <B>Bonuses Are Essential to Your Overall Sales Proposition</B></div> <bR> <div> By carefully establishing high-perceived value but low-cost bonuses, you stand above your competition in the real value provided the customer. There are an infinite number of both tangible and intangible bonuses you can <I>package</I> into your sales proposition.</div> <bR> <div> One of the bonuses we offer potential customers is that the price paid for a female includes a breeding to one of our unrelated studs (buyer's choice).</div> <bR> <div> <B>Tell Potential Purchasers What Specific Action to Take</B></div> <bR> <div> Few businesses realize that they must lead the customer to action in addition to developing a compelling proposition. Potential customers need to be explicitly told what action, or steps, to take. Therefore--and this in incredibly important--every letter, advertisement or personal contact should make the case for your proposition, give the prospect a brief education, and then, take him by the hand, figuratively, and tell him what specific action to take next. If you're offer is a limited-time offer, tell your prospect to get in touch with you immediately. And do not be abstract.</div> <bR> <div> <B>Illustrations</B></div> <bR> <div> Let us take a look at two sample advertisements to illustrate these concepts. The copy for the first advertisement is as follows:</div> <bR> <div> <I><B>It's all about the animals, isn't it? How they are bred, perceived, and how we present them. It's their beauty, grace and strength reflected by their surroundings.</B></I></div> <bR> <div> <I><B>We're (your names) and we have always believed in our animals, in (your farm/ranch name), and our abilities to provide the best for them and eventually you. We provide an environment for buyers, sellers, and of course the finest llamas available. This philosophy has furthered our goal towards excellence. Whether it's which animals we have bought, bred, or which ones we can offer to you, you know it's with this attitude: total commitment, intense dedication, and personal pride.</B></I></div> <bR> <div> <I><B>We would like you to come to (your farm/ranch name) to see our llamas, and to experience for yourself what we mean. What we think it's all about.</B></I></div> <bR> <div> This piece is a direct response advertisement. The opening lines get your attention and peak your interest to read on. What comes across very strongly is attitude. It is upbeat and caring (for the animals and for the prospects). There is a dedication and a commitment to the direction of the business. The pride and pleasure motivations are there both from the seller and from the buyer. The advertisement tells the reader what the farm/ranch has done to get where it is. The advertisement states the unique selling proposition or marketing philosophy of the farm/ranch--they created an environment of excellence--bought the best, bred to the best, and sell only the best. They are fulfilling the needs of those prospects that want to upgrade their herds. The advertisement is focused on that group. They indicate what the next action should be--come by to visit and see for yourself.</div> <bR> <div> The copy for the second advertisement is as follows:</div> <bR> <div> <I><B>(STUD'S NAME)</B></I></div> <bR> <div> <I><B>A Potent Investment in the Future of Your Herd</B></I></div> <bR> <div> <I><B>Because we strongly believe that outside stud service should represent an investment in the future of your herd, we invite you to consider (stud's name).</B></I></div> <bR> <div> <I><B>A few of our most persuasive arguments are pictured at right.</B></I></div> <bR> <div> <I><B>Whether you want to produce top quality outcross females for your own treasured herd sire, to find the perfect match for his daughters or to develop an outstanding junior sire from your foundation stock, (stud's name)'s influence in the cross is a powerful asset. Several of the most prestigious farms in the U.S. have chosen (stud's name) for their best young females. And they've based their decision not only on his production of champions like (list names of champion offspring), but on his proven prepotency for robust, correct conformation and remarkable wool quality.</B></I></div> <bR> <div> <I><B>We still remember the thrill of watching (stud's name) wobble to his feet for the first time, curly and soaking wet and full of promise. We'd be proud to play a small part in recreating that kind of excitement for you. Because we understand: you're not just looking for an outcross breeding for a special female; you're looking to make a prudent investment in the future of your herd.</B></I></div> <bR> <div> <I><B>For information on breeding to (stud's name) please contact (farm/ranch name).</B></I></div> <bR> <div> This is also a direct response advertisement. The headline causes the reader to ask why and to read on to find out. The advertisement begins with a sales pitch--there is no doubt in the reader's mind what he is being asked to do--use the stud. The stud service provider's pride and pleasure motivation is there as well as the profit and pride motivation for the user of the stud service. The attitude--a strong belief in breeding well and the love and enjoyment of their stud comes out strongly. The advertisement is very focused and directed to the prospective users who want to breed well to upgrade their herds--to end up with excellent females or potential herd sires. The reasons why this is so are given. The reader is told what action to take next.</div> <bR> <div> <B>Summary</B></div> <bR> <div> Understanding the importance of having the right marketing attitude and realizing why people do what they do is the first step in creating an effective marketing program. Combine this with implementing a workable set of marketing concepts and the return on your marketing investment will increase significantly.</div> <bR> </td> </tr></table></body>