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Let's think of the steps as puzzle pieces. You must use all the pieces available — in our case, seven pieces — to achieve all the success possible.
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Marketing = Advertising
Advertising is merely the first piece of the whole picture necessary to achieve total success. Advertising is a tool in the overall marketing strategy. |
We
begin in the arena of marketing on the Internet. Most companies
will tell you their Internet marketing has been somewhat
successful. They have their website up, but it's just not producing
the expected results. Why? There is a reason for this limited
vs. the full-blown, knock-your-socks-off, money-is-no-object kind
of total success. And the reason is: Your website alone -
no matter how sophisticated and well-designed it is - is only one
piece of the complex marketing puzzle. |
100,000
mail pieces x 1% response rate = 1,000 leads x 5% conversion to sales
ratio = 50 sales.
The
result : 200,000 mail pieces x 1% response rate = 2,000 leads x 5%
conversion to sales ratio = 100 sales.
What
really happened here? Uncle Joe actually doubled his entire
advertising cost, and it resulted in another 50 sales.
Not bad, but wouldn't it be better to have tripled his sales?
Or even quadrupled them — for the same money spent? Of course
it would. But that was the numbers game. Old school. Double your marketing
(and advertising expense) to double your sales. Even
though Uncle Joe increased his sales, nothing else changed. All of
Uncle Joe's response rates and conversion to sales ratios stayed the
same, and this is why we say limited success was achieved. Enter
The Internet, with new technologies that could change all that. Yet
Joe continued the same method in his Internet marketing - only employing
the
first piece of the whole picture: advertising. For this reason, Uncle
Joe will experience the same results, receiving limited sales
success from using only the first piece of the whole picture. Over and
over again. Remember
Uncle Joe's kids?
Well, they graduated from Harvard and came back to the Five and Dime.
Yes,
at Harvard they learned about the marketing and the technologies available
via the Internet.
They were taught about all the pieces of the puzzle, and how
to put them together. Now let's look at the
method
Uncle Joe's kids would employ to achieve total sales success
while reducing advertising costs.Before
the Internet, businesses employed the numbers game (old school) —
marketing was used solely to bring traffic into the storefront, and
a small percentage of the traffic was converted to sales. When they
wanted more sales, they simply did another burst of marketing (advertising).
To
better understand this, let's look at the
old school method
Uncle Joe's Five and Dime used to achieve an increase in
sales.
Say
a Uncle Joe did a 100,000 piece direct mail which over time has shown
this usually resulted in a 1% response rate. So, out
of the 100,000
mail pieces sent out, 1,000 people
responded and became leads coming into Joe's Five and Dime. Now, the
actual number of sales resulting from those 1,000 leads depended on
Uncle Joe's sales conversion ratio. Let say Uncle Joe's lead to sales
conversion ratio is 5%, the average rate. So, Uncle Joe sold 50 customers.
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