Marketing for Business Leaders: 3 Steps to Increasing Your Marketing Effectiveness

In the quest to increase results from marketing, companies tend to focus on tactics. They worry about creating a better brochure, upgrading the website, or running a new ad campaign. However, often the greatest leaps in marketing effectiveness come from focusing on how it all ties together. Here are three steps for business leaders to improve their marketing effectiveness by fine-tuning their marketing processes.

1. Know what you need.

Marketing’s main job is to feed the sales force with nice, warm leads. Step one towards better marketing is to understand how much and what kind of food they need.

The “how much” is easily answered using basic math. Start with your sales goals and work backward. You’ll need to answer the following questions:

• What is our annual new business revenue goal?





• How many new customers does this represent?




• What percentage of qualified opportunities do we actually close?
• What percentage of leads actually become qualified opportunities?

Using this information, you can determine how many new inquiries your marketing must generate in order for the sales team to meet their goals. For example, let’s say your annual new business revenue goal is $10M; your average deal size is $100,000; your sales people generally close 50% of the qualified opportunities presented to them; and 5% of your inquiries become qualified opportunities. A quick run around the calculator tells us that your marketing efforts need to generate 4000 leads for the sales team.

With this information in hand, marketing planning becomes much more focused. Every activity in the plan should in some way contribute to generating inquiries and developing leads. If you can’t trace a program or activity to this result, don’t spend the money.

2. Match your marketing process to the buying process.

Unless you are selling an impulse item, the decision to purchase your product or service is based on a series of small decisions. Marketing helps to facilitate, and hopefully accelerate, the decision process by making the right information available to the prospect at the right time and from the right source.

It is critical to understand the entire process your customers go through while deciding to buy your product or service. Typically companies have a good understanding of what goes on after an opportunity has been identified, but few spend the time to understand the front end of the process.

A typical buying process could go something like this. The prospect:

a) Becomes aware that he or she has a need

b) Identifies options - often a list of vendors that offer a solution

c) Researches the various solutions

d) Creates a “long list” and issues an RFP

e) Creates a “shortlist”

f) Invites vendors for demos

g) Checks references

h) Negotiates

i) Purchases

Information needs are different at each point in the process. A successful marketing program matches these needs. It allows the company to create awareness among the target prospects by engaging them in a flow of communication that helps navigate their way through the buying process. A marketing program that fails to meet the buyer’s needs at each step of the process won’t deliver as many qualified leads.

3. Get your sales and marketing people on the same page

It is truly astonishing how many companies suffer from a fundamental disconnection between sales and marketing. Here’s a sure sign that your company has that problem. Ask the question “which marketing programs result in revenue?” You’ll likely hear marketing people complain that the sales team doesn’t follow up on leads and won’t track them. And, you’ll hear sales people say that marketing’s leads are worthless. You can’t get an answer because no one knows.

Disconnected sales and marketing efforts result in burned leads, wasted efforts, lengthy sales cycles, and low revenue. It is well worth the effort to develop a cross-functional team.

One of the easiest and most effective places to start with is to develop a common definition of the word “lead”. If you gathered your sales and marketing teams together and ask everyone for their definition, you’ll likely find the sales team has a very different view than your marketing team. (Don’t be surprised if you get different answers within the sales and marketing staffs as well.) Now work together to establish a common definition. Use this definition to guide marketing in developing leads before handing them off to sales.

These steps are a good start toward making your marketing initiatives more effective. Of course, there is much more you can do to tighten the process so that your efforts produce greater results; but by taking these three steps you’ll be well on your way.

Strike Gold With Effective Prospecting

Whether you’re looking for new agents or new clients, the key to finding them is effective prospecting. There are numerous ways to go about prospecting. Some of them are active methods, while others are passive. Active prospecting methods are things like Personal Observation, Public Speaking, Agent and Client Referrals, Networking, and Centers of Influence, while passive methods include using the internet, newspaper advertising and direct mail campaigns. Both passive and active prospecting will produce results, however they differ in efficiency and effectiveness &ndash and understanding those differences will make all the difference to you and your results.

Passive methods are easy to implement, but are actually pretty inefficient. They attract 1) “tire kickers”, 2) people looking for a job, 3) price shoppers, and 4) people simply looking for a way to make money. Please understand, these methods do produce results and can uncover fantastic people who become great agents or clients, but generally the quality of results is poor. When these methods are implemented, plenty of activity is generated, but few prospects become agents or clients. The passive methods appear to be very efficient, but they produce so much worthless activity that they become extremely inefficient.

Active methods, on the other hand, take more time on the front end, but because they are so much more effective end up being much more efficient. They are so much more effective because interviews/meetings are only generated with people who have an interest in working with you, and share your purpose and passion. Agents often coming on board because they identify with you and what you stand for, they see it as a good opportunity to build a future, and they see the opportunity as one that offers unlimited financial growth. Clients decide to work with you because they see who you are, and identify and respect you and what you believe in. Not only are active methods more effective, but agents who are recruited through active methods historically are better producers and clients created this way are more loyal.

Why Active Prospecting Is More Effective

For Recruiting:

• A key to a successful recruiting program is to effectively identify candidates with an “owner” mindset. Candidates with an owner mindset are better at taking initiative while candidates with an employee mindset are better at taking instruction. Candidates with an owner mindset are self-starters who recognize the correlation between their success and the amount of effort they put forth &ndash in fact, they thrive on this. They take initiative, they think independently and they tend to succeed when they’re given the freedom to do things their own way. These are the kind of candidates that make up the foundation of any winning sales force. Active recruiting allows you to better identify candidates right from the start who are inclined to be owners rather than employees.

• People who respond to recruitment advertising are generally looking for something better than what they have. Either they’re unhappy with their current situation or they have no job at all. Now… think about whether you’d rather have a prospective agent who is happy and productive where they are or someone who is unhappy and maybe even unproductive where they are? Most territory builders would always prefer a candidate who is already productive and happy. They want someone who has a positive attitude and good work habits. By seeking out candidates who are closer to your ideal with respect to productivity, attitude and drive, you end up with agents who are productive, positive and successful

• Ever get frustrated with the production of your agents and wonder how to motivate them? This is a prevalent challenge within the industry. The cause for this issue comes from how the agents were recruited. Not only are many agents recruited through advertising, but, often what the manager is passionate about isn’t communicated. Without a worthwhile purpose, it’s pretty difficult to attract and keep the right kind of people &ndash people who are happy, energetic and highly productive. In case you doubt the validity of this observation about the power of personal attraction, look over your agents and see who the highest producers are and/or the ones who are most responsive. Typically they’re the agents you personally recruited rather than the agents you “inherited”. When you actively recruit, you create the opportunity to let a candidate see what you’re about - what matters to you. You end up attracting like-minded people.

For Prospecting:

• People do business with people they like. The only way for others to get to know you is by getting out and meeting people. When you do your prospecting passively, they don’t get to know you at all. They are simply responding to something they read.

• People are attracted to someone who stands for something and has a purpose. When you spend time clarifying what sets you apart from everyone else and spend time clarifying your purpose, and then communicate them effectively, you will attract like-minded clients who identify with you and become loyal to you.

• The best way to keep clients is to build a relationship with them. Without a relationship, they simply become price-shopping customers. With a relationship, they become clients who will stay with you and become clients who refer others to you. It perpetuates success.

Active prospecting allows you to attract the kind of people you want, allows you to meet with only those people who are likely to succeed and stay with you, and allows you to build a team of loyal, professional, hard-working, responsive and successful agents or a solid book of loyal clients.

Break out of the internet and advertising routine. Start powering up your prospecting and boosting your success!

Trade Show Exhibiting Tips

Participation in a trade exhibition is an essential weapon in the marketing armoury &ndash and like any weapon it has to handled with care, skill and attention if it is not to go off at half-cock.

Its effective use requires careful preparation and training. Incorporate it into the total marketing strategy and it becomes a tactical device which, when aimed at the right target, can trigger a highly successful campaign.

Preparation

All craftsmen will confirm that a good job depends on good preparation.

Tell everyone in your organisation that your company is going to take a stand at the exhibition. Everyone may have something very worthwhile to contribute to your ultimate success.

Communicate

Create a small Action Committee and appoint one of its members as Exhibition Co-ordinator with responsibility for all aspects of your participation &ndash and the authority to get all things down. Allocate a budget and set a regular agenda with a clear timescale for each action.

Look again at what you have booked. Is it space only? A shell stand? Or an all-in- package? &ndash is it what you need?

Space Only &ndash i.e. chalk marks on the floor. This means you have simply rented some empty floor space on which you have to pay to have a stand erected. You’ll need to appoint a stand contractor/designer.

Shell Stand &ndash i.e. in addition to the floor space you have rented a simple structure usually comprising two or three walls, carpet tiles, name board and a lattice work or muslin ceiling. Check if other items such as lighting or stand cleaning are included in the purchase price. If you have your own demountable display system you will probably only be allowed to set it up within the official shell scheme. Do you need an interior designer or contractor?

All in package &ndash i.e. a ready made unit usually for smaller stands only but comes complete with all the basics and awaiting your display.

Right, so now you know what you’ve booked and you’re ready for the opening day. No, not the first day of the show though that will come along quickly enough, but the first day of your preparation which is never a moment too soon.

Remember that when you move into the exhibition hall you will be putting your company on show. What you do with your stand reflects your company’s image.

Decide what it is that you want to show. Try to introduce a theme which will give a focal point to the display, a theme, perhaps, that can be carried through your pre-show advertising. If possible include a demonstration of the product in action &ndash remember the old Hoover Salesmen who emptied dust on the housewife’s carpet before vacuuming it away? If the visitor can see the product working or, better still, can try it for himself, he’ll be easier to convince.

If you sell a service or your product is to large to display on the stand think about other ways you can attract potential customers onto your stand

Face to face contact means that you can use all five senses &ndash sight, touch, smell, taste and hearing &ndash so take a good look at your product and see how many of these can be brought into play. They say that the more senses involved in an experience the longer that experience will be remembered.

Remember that it is your product that the visitor has some to see, or other similar products. There is nothing more infuriating &ndash and deflating &ndash than a visitor trying to sell you something while having no interest in your product. Have an action plan to deal with these type of persons, maybe just explain that you are very busy trying to get business for your company and if they can just leave you a business card, you will contact them after the show if you need more information.

You’ll find, for example, that your stand should be at least two-thirds open. This is for your sake as well as the visitors, the exhibition is neutral territory. If your stand is designed like a fortress or a special club into which only very selected visitors are invited, a barrier is created.

As you begin to design the layout, think what would help entice you onto a stand if you were the visitor. You’d want it to be accessible, welcoming and not full of little areas where you might be trapped. Ensure it is well lit, highlighting those products which you wish to emphasize. Make your visitors feel comfortable about coming onto the stand. Remember the psychological barriers that can be so easily erected. Visitors may be reluctant or hesitant to step up onto a platform or even to cross the carpet line, feeling that either will leave them, as fair game to predatory sales people.

So make the stand inviting, easy to get onto &ndash perhaps, with a hands on demonstration that the visitor can try out without fear of being ambushed.

Live demonstrations of your product are the best way to get visitors onto your stand, if you can’t do this think about employing a crowd-magnet someone that specializes in this area.

Contact .crowdmagnets.com for further information. A professional crowd-magnet is a top flight magician that can attract many passing visitors to your stand, and then perform exciting close up illusions while educating the visitors about a companies USPs. Normally, a crowd-magnet can increase the amount of visitors to your stand by over 300% while educating and getting these potential clients interested in your product or services.

Remember, that some visitors like to browse or window shop. If they see something they like then they will make a move to find out more. Watch body language. It’s also worth taking a tip from some of the big department stores who are past masters at window display &ndash not too much, not cluttered, but the message is all there. If you are having large graphics to get your message across, do not have too many words printed on them. Keep it short and simple. Visitors do not have the time to stand and read something that is to wordy.

Small stands can be effective too. Exhibitions give the opportunity to demonstrate your product to a large number of potential clients simultaneously, something not possible in your office or theirs &ndash and one good visitor can make the entire exercise worthwhile. Sometimes that visitor is the one that even your best sales representative couldn’t get to see in his office but he came to the exhibition!

It’s as well to read the Rules and Regulation again. Again? You mean you didn’t read them when you booked the site? They’re there to help, not to hinder, and their contents draw on years of experience.

Check the exhibition Manual; it includes a checklist of things to do and when to do them by, it includes order forms, catalogue entry forms and a mass of important information. It may be tedious but it’s not difficult and it will keep your operation running smoothly. It even sets out a timetable with deadline dates for your planning progress. Use it.

As build up approaches, do a final check. Make sure that everything works. If you have any electrical appliance on the stand, make sure that you have got the right electrical connections, that sockets have been installed, that the equipment has a plug and that it all operates. Take a spare or have one available at short notice.

Tell people that you’re going to be there. Communicate.

Whose show is it anyway? It’s yours, as if there was no other exhibitor, as if every visitor was coming to the show just to see you. The organiser has been employed by you to do certain things &ndash like hiring a hall, arranging the technicalities and promoting the event &ndash but when it comes to getting visitors there the organiser’s job stops as soon as they have entered the exhibition. From that point onwards, it’s up to you to make sure that they come onto your stand.

Think about your investment. Would you trust it all to someone else? Your participation has to be an integral part of your overall strategy. Remember organisers help those who help themselves.

Your participation is, has to be, part of your total strategy, an integral part. It is the one medium that can make all the others come together.

So what are the other mediums?

Advertising: It works better if there is a requirement to action &ndash like sending for a free ticket, or bringing the advertisement to your stand to collect a further benefit. So use your existing advertising campaign by quoting your stand number at the show. Use the show’s logo; it identifies you with the exhibition. It’s provided free of charge, and gives the reader a further focus, a touch of added confidence.

Direct Mail: Send a free ticket with your mail shot &ndash it adds an extra benefit, a purpose, it helps to communicate.

PR: Your Participation at the event gives you something to talk about, create news &ndash use it.

Sales Representatives: If an interview is not reaching a conclusion, your sales staff can invite the hesitant client to ‘take another look’ by coming along to the show. It’s also a courteous way to maintain contacts with existing customers.

When the circus comes to town the most important part is the parade &ndash letting people know that it’s on. The organiser will do his stuff but like the circus promoter, he needs to highlight the stars of the show. That’s a good reason for you to book early &ndash a great deal of addition publicity at no extra cost. But the organiser will do a great deal more. He’ll provide you with a range of promotional items. Use them…

Posters: Put them up in reception, in rest rooms, in the sales office, in the showrooms etc and make sure that your stand number is written large print.

Let staff and visitors know that you’re going to be at an exhibition.

Letter Stickers: They should go on every letter leaving your office, including invoices and statements. If all your staff are aware of, and enthusiastic about the show then they’ll want to use them &ndash because they are a way of bringing more business.

Logos: Use them on advertisements; they provide an action point where potential visitors can make a mental note to visit you. They also boost confidence among staff and customers, knowing that you’ll be taking part.

Tickets: Ensure that you have a good supply but remember they will do you no good if they sit in the pending tray. Ensure that invitation tickets are enclosed with all mail shots and quotations. Plan a specific mailing to existing and potential customers, preferably with a personalised letter. Make sure that your Reps carry a supply of tickets and use them to invite potential clients to the show.

It’s a proven fact that more visitors respond to an invitation from an Exhibitor than they do from any other source.

Many exhibitors do not invite their existing customers &ndash fearful that they may be attracted to a rival.

This is the wrong strategy. It is important to install confidence in customers &ndash confidence in your product and confidence in your ability to out-swing the competition. Not to invite them is a negative attitude.

Look at your client list, putting the biggest and most regular at the top, indicating roughly how much business they give you each year. How far down this list do you have to go before you reach 80% of your annual turnover? Probably not very far. Give those special customers a little VIP treatment &ndash invite them to breakfast; or send them a first class rail ticket; or a special invitation which ensures they are met at the entrance to the show and escorted to your stand; or provide a car parking and collection facility.

Use the event to its fullest potential &ndash inside and outside the exhibition itself.

Don’t forget the show catalogue. You will usually be entitled to a free editorial entry, so make the most of it. Many exhibitors write inappropriate copy or fail to submit it altogether for this important reference work. This is to misunderstand its function. It is not primarily designed as a programme or guide but rather as a permanent source of reference.

Of course, you will be issuing your own press releases from time to time as part of your overall marketing strategy. You may be introducing a new product at the exhibition but do not want to say too much too soon. It may be an opportunity for a ‘tease’ campaign, hinting that the wraps will be coming off at the show. This is particularly effective if the industry has been expectant about a particular development.

The Press Relations Office will be eager to highlight particular attractions to ensure that you have kept them fully informed, and have someone available in case there is a chance of an interview.

Make sure that your press packets are in the Press Office in good time and in good order. There will be many other packs seeking the attention of visiting journalists to ensure that yours is clear, manageable, relevant and recognizable. Usually the press are not interested in your glossy or technical brochure. They want a simple explanation of your product, what it is, what it does and how well it does it. A black and white picture helps.

With so many important people attending an exhibition you may decide to use the opportunity to hold your own press reception,. By keeping in close touch with Press Relations Office you will avoid holding it at the same time as the organisers or other exhibitors are holding theirs, thus increasing your chances of getting a satisfactory attendance.

Remember, no matter how good you’re planning, no matter how attractive your stand, no matter how exciting your product range, unless you tell your potential customers it will all go for naught. People can only beat a path to your door if they know where it is.

Freebies: Kicking the Cheapskate Habit

What’s the magic word in marketing? Yeah, that’s right… FREE! It’s the basic foundation of Marketing 101. That four-letter word captures attention, and spells success.

Now for the big question, “Are you implementing it?” Nope, those old clearance items that you haven’t been able to get rid of for the past decade don’t count. I’m talking about the real deal… something that’s worth something just being given away, no strings attached and no hidden costs.

Chances are that you’re probably just like the rest of us, and are afraid to really give something away. Heck, it costs a LOT of money to just throw products out the window to everyone who looks your way. We know how many people are out there like leaches, just looking for a handout, right?

Maybe… then again, maybe we cut ourselves out of a big bunch of profit by being cheapskates. That’s right, cheapskates!

Think about this. How can you effectively describe the taste of a crisp salad with all the trimmings, and a hot steaming turkey sandwich? Aren’t there a dozen restaurants that serve the same menu?

Would a restaurant owner be a fool to give away 1000 FREE lunches instead of trying to say in words when the tantalizing aroma, succulent tastes, and tasteful appearance can do convince in a way no words could ever? Sure, it might cost $5000, but how much higher would conversion rates be?

It sure doesn’t take long to rack up a $5000 dollar advertising bill with local TV and radio stations, or the newspaper. Will they net as many converted consumers?

Maybe you’re not into the food industry, but there is something you can give away that will have the same affect. Maybe it’s a free informational seminar, a free oil change, a free subscription, or a free haircut.

The key is to get them in the door, and wow them with the best you’ve got to offer. Believe me, consumers know when they’ve been handed cast-offs and when they’ve been wined and dined like royalty. You judge… which is more effective?

Most of us have come to expect the hidden agendas of giveaways. When we accept a gift, we’re looking for the “catch.” It’s a pleasant surprise to come across the “real deal.” We’re taken aback. We scratch our heads and wonder, but deep inside there’s a warm fuzzy that sticks around. We remember genuine generosity!

The next time you’re looking for a way to increase revenue, and are tempted to take the cheap way out, curb the urge. Go all out and treat your customers to an old-fashioned, honest-to-goodness FREE gift. See what happens!

Hey, I didn’t say it would be easy or that it wouldn’t take guts! Just remember that sometimes the biggest risks pay off big, and that risk takers often come out on top. Go the extra mile, and stand out above the competition… even if it scares you a little bit.

There are only three ways to grow any business

Raise price, frequency of purchase, quantity of purchase!

To make your business prosper and grow, it is necessary to understand the principles on which your business growth will be based. Raising prices, frequency of purchase and quantity of purchase are critical to your business survival and growth. Business is based on principles. The best ways to expand and grow your business is to follow these 3 basic principles.

Raise Price: Inflation forces retailers to raise the price of goods. There is no such thing as static price and businesses everywhere are forced to raise prices on goods in order to stay in profit. The problem facing businesses is the fact that consumers see price raises in a different light. They see it as price gauging, and feel that the business is taking advantage of them.

You must be careful when you raise prices to be sure that the sales do not go down. Here are some points to help pacify customers when price raises confront them:

1. Try to add value: this will help to justify price raises in the consumer’s eyes

2. Raise prices gradually: buyers can tolerate 50c or a dollar, but if you do bigger price hikes you will lose sales.

3. Make sure the items are popular items, so that customers will still feel compelled to buy despite the raise in price.

Frequency of purchase: Frequency of purchase is necessary for your business survival. If customers are not buying with reasonable frequency then you cannot make enough profit for your survival. In order to make this happen you will need to do 2 things.

Retain customers and keep them purchasing from you: You can do this by over delivering to your customers and building good customer relationships with them. This will help to make them your loyal customers. You can also achieve this by selling them back end products. These will be related products that will be offered as bounce back offers when they purchase from you. Much of your profit will be gained this way. In fact it is estimated that 20% of company profits are from the primary product and 80% will be from back end products.

Have a flow of new customers: Every business needs a steady stream of new customers. These buyers will be gained by advertising and market promotions. This will be your most expensive marketing effort but you will gain returns in the long run.

Working your current market will bring in new customers. Establish yourself as the expert and the leader in your market. In this way you will build customer loyalty and gain new customers. Added to this you should expand into new markets with new products to gather more buyers.

Quantity of purchase: This is the principle that will determine not only survival but also the growth of your company. In order for your business to keep on growing, quantity of purchase must increase. This can be done in the following ways:

1. Start an affiliate program: This can be done by starting your own company website and developing a program for people to sell your product. It is just like a sales force in the offline world. The only difference is that your affiliates will be driving warm ready to buy visitors to the sales page on your website, not necessarily to your store or business. This can generate a lot of business and take care of online sales.

2. Froogle: List your business with Froogle. The shopping listing with Google. You can even put your location in this listing and draw more people to your business. You can also make local listings in the search engine and Google maps. This will increase the quantity of purchase.

3. Get a website presence to expand your marketing: These days you cannot really afford to be without a website presence. This is a powerful way to get ahead of your competition. You can draw new customers from the Internet community. As stated you can have a local listing in Google search engine. Plus you can have a local listing with Google Adwords.

4. Focus on multiple niche markets: Do not just stop at one niche market. Expand into other related markets or even completely different ones. This will increase your new customers and quantity of purchase.

5. Up selling: Train all your sales staff to up sell products. This will increase product awareness with your customers and make more sales.

When you pay attention to these 3 principles, you will be able to take your company to new heights. So remember the 3 principles, raising prices, frequency of purchase and quantity of purchase and your company will not stay stagnant. You will continue to grow and expand your business and make your company the leader in your industry.

Smart Marketing For Inventors Chapter 2 - Turning your invention into a marketable product.

There are many smart inventors who come up with unique products which solve problems which were in need of being solved, which make life easier, and which save people’s lives. Yet many of these inventors do not have engineering degrees, are not designers, and many have no design experience at all. They typically do not have any marketing experience as well. As such, they do not realize the fact that their rough prototype of their invention will not succeed as a marketable product. This might be because of a number of factors such as:

1. the product based on the invention (hereinafter referred to as the product) does not meet a specific customer need;

2. the product does not aesthetically appeal to the customer;

3. the product is not designed to withstand the use and abuse to which customers will subject the

product; and

4. the product is not properly packaged, advertised, and promoted to appeal to the customer.

Regarding factor 1, that the product does not meet a specific customer need, it should be remembered that the bottom line to any potential customer is whether the product fulfills an actual need of the customer, which need the customer may or may not realize they have. If the need is one the potential customer does not know he or she has, the marketing effort will need to include educating the potential customer as to the need and how the product meets that need. Needs of the potential customer include making their life more enjoyable, easier, etc.

Regarding factor 2, that the product does not aesthetically appeal to the customer, it should be remembered that the first thing a potential customer likely perceives is the overall look of the product. If the product has a look which appeals to the potential customer, they are more likely to further investigate the product to see what it is and how it works. Aesthetic appeal includes the overall lines of the product, that is, does the product have curved surfaces or angular surfaces, are the colors of the product appealing, is the product ergonomically designed to fit the human body, etc. Curved lines might be appropriate for certain products such as lounge chairs and kitchen mixers to give a modern, ergonomic look, whereas angular lines might be more appropriate for other products, such as hand tools such as chisels and axes.

Regarding factor 3, that the product is not designed to withstand the use and abuse to which customers will subject the product, it should be remembered that customers will use the product for uses which the inventor intended as well as uses which the inventor did not intend, nor even foresee such use. For example, a screw driver might be used as a chisel which is struck by a hammer. Care must be taken to make the product robust enough to withstand foreseeable unintended uses and to warn the customer of foreseeable hazardous uses such as by applying a warning sticker to the product and a warning on the packaging and on the instructional materials. Questions in this regard should be directed towards a lawyer specializing in the legal field of Products Liability, such as in most larger city yellow pages phonebook.

Finally, regarding factor 4, that the product is not properly packaged, advertised, and promoted to appeal to the customer, it should be remembered that the packaging of the product is part of the overall first impression the potential customer has of your product, and in the case of products which are not visible from within the packaging, are the only item of first impression to the potential customer. Therefore, a well thought out and designed packaging and advertising materials is essential to the success of many products. It should be clear from a not-so-lengthy viewing of these items what the product does for the potential customer. Remember, you typically only have from fractions of a second to several seconds to capture the potential customer’s attention and interest in your product. There are advertising and packaging design specialists in the yellow pages phone book of most larger cities which can be consulted for a fee, and many books on advertising at your local bookstore, library, and on the internet.

Best regards,

Brian R. Rayve, Esq.

Owner, InventionPatenting.com

Seven Ways to Use Market Segmentation at a Health Plan

Implementing marketing segmentation is never a slam dunk and health plans have more difficulty than other firms because of their regulatory environment. But the pattern of decisions is simple when they are broken into steps.

First, market segmentation research is needed to identify and define market segments. This process is fairly involved and is described elsewhere. (See for example the whitepapers at .deftresearch.com.) The research helps firms decide which segmentation strategy to use. These strategies may be based on purchasing behavior, consumer characteristics, lifestyle information, or other market information.

Second the team must ask, “which segment or segments does the health plan wish to target?”

The market research will provide objective information facilitating this decision. Most experts would agree that it is foolish to target a segment to which you do not now have a reasonably good fit (e.g. the GMC truck division pursuing a “green”, hybrid-oriented segment).

Finally, the fun begins. Once target segments have been decided on, there are at least seven ways to use segmentation.

1. Positioning. Take health care as an example. Most health plans offer multiple plans where premiums and access to branded drugs and providers differ. There are segments of the market willing to trade lower premiums for more restrictions on access. But other segments are not willing to make this trade. Market segmentation will help companies re-position their “basic” and “premier” plans to match segments’ motivations and concerns Sticking with health care for an example, some seniors are motivated to act because of service, convenience, or help with health maintenance. If segmentation is implemented, more seniors will find the right product for them.

2. New markets. Products or brands could be positioned to meet the needs of a segment the company does not now serve very well. For example, many limited income seniors have been automatically enrolled in Medicare’s Part D plans, but they don’t have to stay there. If a health plan knows what this segment’s concerns are, it could induce them to switch.

3. Geography. Health plans have found it productive to emphasize different products and selling strategies in different geographies depending on the mix of segments in those geographies.

4. Direct marketing is all about segmentation, but it is often focused narrowly on internal sales analysis. Segmentation can leverage the value of in-house data and make additional data worth the cost.

5. Advertising agencies often drive segmentation research and use it well. For example, the client has chosen to target the “mass affluent” as defined by some combination of assets and attitudes. Media buyers need to know the magazines this segment reads and the types of web sites and search engines they use. Copy writers will incorporate the deep values of this segment into commercial scripts. Creative directors will insist that the visual imagery of advertising be consistent with what the “mass affluent” look like, talk like, and do. Account planners will concentrate their research on the target segment,

using the classification tool to recruit and screen the right people.

6. Call centers. Health plans can ask segment classification questions in their response call-in customer interviews and in their telephone enrollment interviews. The classification can help find the best plan for each caller and this will help assure better retention.

7. Channel mix. Segments may have different affinities for different distribution and sales channels. Perhaps one segment of buyers is unreceptive to e-mail communications; another segment may never accept a personal visit but will read your

e-mail.

It is the exceptional firm, but some have literally organized themselves around segments. In these firms, any employee can tell you who their target is, and who the target is not. If they have multiple brands, each brand is adapted to fit one segment. Brand tracking is done at the segment level. The advertising agency for each brand is expected to zero in on that segment in its messaging and media selection. Because some segments inherently offer higher or lower unit margins, financial expectations of the brands are adjusted accordingly. In health care, one example is Wellpoint’s commercial operation organized around products and services for different segments of employers.

Conclusion

Market segmentation is a far-reaching strategy that can benefit health plan players. Once the targets have been set, the firm has an opportunity to consolidate management of operations around its segmentation strategy. Every business function can be mobilized to take full advantage of the opportunities that market segmentation offers.

Commerce Psychology

Many people go from site to site on the Internet,and

never realize what they ‘re dealing with! To truly understand you must take brief step back,and look from another angle. Ask yourself why the teacher would not let you look on the smart kid’s paper during that test in high school,that would have been too easy right? Well imagine sitting beside the smartest kid in the world,and the teacher says “oh go ahead look all you want” . Remember how we use to envy “Captain Kirk” he could ask that computer anything he wanted ,and it would give him the answer. Well “WAKE UP”you’re there ! In most cases they don’t speak out audibly but its still the same results. Knowledge is Power,and ,power out ranks money,power control money, and knowledge controls money.

Multiple Streams of Income - 5 Reasons Why You Absolutely Need it

I’ve become enamored with the word “multiple,” especially when it pertains to business. I especially like the idea of harnessing the power of the multiple to grow your business multiple times over.

There are a lot of things that can be multiple in a business, but in this article I’m focusing on multiple streams of income. In a nutshell, multiple streams of income means your business has more then one way to make money. For instance, you sell products and you sell services. Those are multiple streams of incomes. Why do you need them? Below are five reasons:

1. Make money while you sleep. This is a big one for those of us who sell our time (also known as providing services). The biggest drawback to selling time is when you aren’t working, you aren’t making money. So when you’re on vacation, relaxing over the weekend or (gasp) sleeping, no money is coming into the business. But let’s say you create a product or two to sell in addition to your services. Now you’ve just created a passive income stream (passive meaning it doesn’t require yours or anyone else’s time). So if you are taking a nap or out walking the dogs, money can still be coming into your business. (What a concept!)

2. Leverage your time. This is especially true with income streams that are passive. Basically you’re making money without it taking any of your time. Therefore, you can spend your time doing something else and still enjoy money coming in from a passive income stream. This is a good way to use your time wisely. (Rather than work for an hour, get paid for an hour, you can be paid several times in several different ways during that same hour.)

3. Fill your pipeline. If all you sell is high-priced services, it can be difficult getting clients to hire you. After all, clients need to trust you and trust they’re getting a good deal for their money. If you offer products or lower-priced services, you’re giving those customers a chance to “try you out” before plunking down several thousand dollars for a major project or consulting work. Because your clients’ initial investment is lower, you have a chance to lower their resistance to hiring you.

4. Catch a variety of clients. No matter what you offer, a part of your target market is not going to be interested in hiring you. Why? Because they’d rather do it themselves. Or maybe they don’t have the money to hire you. Or maybe they do the same thing you do and would rather learn from you to better their own skills. By offering a product or a class or a group option, you’re widening your net. Not only are you able to help more people, but you’ll also be making more money doing it.

5. Diversify. The more income streams you have, the less devastating it will be to lose one. Not to be negative, but things happen. Industries change. Economies change. People want different things. If all you offer is services, and those services suddenly become obsolete, what happens to your business? Or, a more likely scenario, what if you lose your biggest client? Or a couple big clients at the same time? Sure, eventually you’ll find other clients to make up the difference, but what happens in the meantime? What if it takes a month or two or six? Your bills certainly won’t wait that long. But if you have other income streams, a dip in your services (or a dip in product income) is no longer so scary because you’ll still have money coming in.

Creativity Exercise — Find time to create multiple income streams

Probably the hardest part of creating multiple income streams is a lack of time, especially when your primary business is service based. So, now that you know how important it is, how are you going to find the time to start doing it?

Here are a few ideas to get you thinking:

* Hire a virtual assistant (VA) or bookkeeper to take care of some tasks you have no business doing anyway.

* Create systems in your business so you can complete business tasks faster and more efficiently.

* Raise your prices so you can take on fewer clients and make more money.

* Dedicate a Saturday or Sunday to working on your business. (Be careful with this one as you could very quickly end up burning yourself out.)

Get a pen and paper and do some brainstorming to see how you can find more time to start creating more income streams.

Stop Chasing Away Customers! Bad Copy Is Your Worst Enemy

Every day, more and more of us begin new online business ventures, hoping to make a better living or just a little extra on the side. And every day, more and more of us fail.

This may seem like a negative attitude, but unfortunately, it’s the truth. The Internet is a great place to do business, but finding real success is like finding a needle in a virtual haystack. So what’s the problem?

To be honest, the more I surf the Web, the more bad writing I see. I can’t tell you how many sites I’ve visited that feature boring, disorganized, or almost incoherent copy. And let’s face it: if your website can’t communicate your marketing message in an exciting, informative, and professional way, you’re not going to sell much.

If you think the way your website or other marketing materials read just isn’t that important, think again. When you’re trying to sell online, through the mail, or with email, written words are all you’ve got.

If you walked into an electronics store to buy a computer and found their salespeople unhelpful, uninterested, and untrustworthy, would you buy? Of course not. The same goes for your website or sales copy. If someone is reading your homepage and finds your writing sloppy, boring, or skimpy, they’re not going to buy from you.

First, make sure you have ENOUGH copy to explain your product or service. If there just isn’t enough content, people won’t have the information they need to make a decision. Skimpy or sparse sales copy will drive people away faster than anything else.

Next, be careful! When writing your sales copy or website, don’t just rush through to get it over with. A lot of people hate to write, but we’re talking about your only interaction with customers here. Even minor spelling errors, grammatical mistakes, or awkward sentences can add up to a gaping hole in your credibility–and your profits.

Third, get excited about what you’re selling! You don’t have to hype it up to the rafters, but you do need some enthusiasm. Your writing can be exciting and motivational without loosing its credibility. If you don’t get excited about your product, why should anyone else?

These are just the basics, but remember: the way your sales copy or website is written can literally make or break your chances for success. If you have a hard time finding the right words, can’t spell worth beans, or need a little help in the exciting department, don’t be afraid to ask for help from a friend, associate, or professional. When words are all you’ve got, you need to make them count!