VIEWS: 18 PAGES: 8 CATEGORY: Marketing Plans POSTED ON: 5/11/2011
The importance of generating quality prospects and how to effectively target your market is revealed.
How To Generate Quality Prospects By Kennard Brown, MBA How Companies Generate Leads LEADS Every business must have a constant flow of leads to survive. What are leads? Leads are people that have expressed interest in your service or product. Another name for leads is Prospects. Many people confuse leads with suspects. Suspects are people that may be interested in your service or product. Yet, you have not contacted these suspects to see if they are interested. A major part of any type of market research is to locate suspects that have a high probability of being interested in your service or product. GENERATING LEADS Well, how do companies usually generate leads? Companies generate leads using different medium. Mediums are sources where companies advertise. According to Coen’s 2009 US Ad Spend by Medium, the following are the most popular media (plural for mediums) in reference to spending: • Direct Mail ($58.43 billion) • Broadcast TV ($40.51 billion – network, spot, syndicated) • Newspaper ($31.61 billion) • Cable TV ($21.65 billion) • Radio ($16.46 billion) • Yellow Pages ($13.2 billion) • Consumer magazine ($12.05 billion) • Internet ($11.94 billion) • Other ($52.85 billion) Direct mail is the medium that companies spend the most advertising dollars. Companies prefer contacting suspects and prospects remotely & directly. Yet, integrating direct mail with other low cost mediums (Telemarketing and Internet) that are designed to get the suspect or prospect to respond will ultimately increase sales and lower advertising expenses. Direct marketing & copywriting expert Bob Bly in his excellent book The Complete Idiot's Guide to Direct Marketing (pg. 4) states: "Direct Marketing is any type of marketing that seeks some sort of reply from the reader, typically by phone, mail, e-mail, or fax. Direct marketing print materials usually have response coupons or reply cards you can use to request more information or order the product. Direct marketing TV and radio commercials typically use toll-free 800 numbers (and nowadays, 900 numbers as well). Many encourage prospects to respond via e-mail or visit a website." Please complete our Prospect Generation No-Charge Consultation form so that we can develop a cost effective direct marketing program for your organization. How To Develop An Effective Marketing Plan Developing a marketing plan is not really hard when you know how. The following is based on REAL WORLD experience NOT theory. RESIDUAL INCOME & HIGH PROFIT PER SALE You need to generate income two ways for your business to survive: • Residual Income • High Profit per Sale Residual income is income that is generated every month. You make the sale once and the business or individual that you sold buys your service every month. If you're looking to increase sales for your business, then you must offer a service or product that will produce residual monthly income. Examples of Monthly Residual Income: • Utility (Telephone, Gas, Electric) Service • Insurance • Financing (Cars, Real Estate & Credit Cards) • Groceries • Any consumable product that has to be replaced monthly • Online subscription services • Any monthly service • Vital marketing services like telemarketing and direct mail The great thing about offering a service or highly consumable product that generates monthly residual income is that the more people that you sell, then the more money you will generate. This is why many companies on the Fortune 500 list sell highly consumable products or services. If you don't desire to sell a service or product that produces consistent, monthly residual income, then you must sell a product or service that generates a very high profit. Example: You are a marketing consultant and you survive by producing just 4 sales per year. Your cost of sales is only $1,000 per sale. Yet, each sale is $25,000. So, your profit is $24,000 every three months for a total of $96,000 before taxes per year. Examples of High Profit Per Sale Income: • Consulting • Information Technology Service for Businesses • Professional Speaker Service • Any service or product that is high priced and has a very low cost of sales If you have to make a lot of sales per month to just break even, then your business is in danger of being eliminated. 2 THE FOUR AREAS OF CONCENTRATION FOR AN EFFECTIVE MARKETING PLAN According to 7 Steps To Freedom II by Benjamin D. Suarez (1994) pg. 2-6, these are the four areas of concentration for an effective marketing plan: (1) Demand For Product: What kind of service/product do you plan to sell and market and is there a GREAT demand for it? (2) Effectiveness Of The Sales Promotion: What type of marketing message and materials will you use to promote your service/product? Please understand that your marketing message is different for each service/product that you offer. If you are going to utilize a marketing message that is working successfully for another service/product, then you must test the application of the message toward the new service/product before considering to regularly use it. Don't assume that it will work for the new service/product. If a marketing message is successful for one of your services or products, then don't permanently change the message. Test the new message. If the new message is more effective, then use it. (3) Quality Of The Prospect: Who is your ideal customer for your service/product? (4) Efficiency Of The Medium To Reach Prospect: What type of medium will you use and is it efficient? The answers to the above questions will produce a marketing plan for your business. Of course, you will need to charge a profitable price. Please complete our Prospect Generation No-Charge Consultation form so that we can develop a cost effective direct marketing program for your organization. TARGET MARKET Realize that everyone will not buy your product or service. This is why you need to find out WHO will have a high probability of buying your product or service. One of the most important things that you must discover is the target market of your product or service. Try to picture target marketing like playing a game of darts. Your goal is to hit the bulls eye with your product or service. Visualize hitting the bull's- eye and a lot of money spills out of the bull's-eye. This is how you should approach each product or service that you plan to sell. Target market information for consumers usually is the following: • Gender • Age • Income • Location • Buying patterns Click Nielsen to find out what marketers know about you and the people that live around you! When you get to the website, just input your zip code. You can also utilize this information to prepare for a consumer-marketing program. 3 Target market information for businesses usually is the following: • Annual Revenue or Sales • Number of Employees • Location/Geography • Decision maker (C-level Executive or Middle Managers) • Type of Business The size of businesses: • Very small (1 to 19 employees) • Small (20 to 99 employees) • Medium (100-499 employees) • Large (500+) Analyzing your own customer database for consistent buying patterns and characteristics can produce target market information for consumers & businesses. Companies like Nielsen can do this for you. If you're just starting out or you are diversifying, then you must find out the target market of any service/product that you desire to sell by asking companies that sell similar services/products or by conducting industry research. RESOURCES TO HELP YOU DEVELOP A MARKETING PLAN • Ultimate Business Planner - SBA recommended business plan software • Hoover's Online - Industry & Business Information • Plunkett Research, LTD. - Industry & Business Information • ZapData - Business Information • U.S. Census Bureau - Industry & Business Markets • Polk City Directories - Local Market Concentration • SRDS - Leading provider of media rates and data for the advertising industry FORMULA FOR INCREASING YOUR SALES The concept of the following formula is from The 17 Principles Of Personal Achievement by Napoleon Hill (1997) pg. 75: Q1 + Q2 + MA = INCREASE OR DECREASE IN SALES Q1 = Quality of service or product rendered Q2 = Quantity of service or product rendered MA = The Mental Attitude in which it is rendered If you increase the quality, quantity and positive mental attitude associated with your product or service rendered, then sales will increase. THE IMPORTANCE OF GIVING SOMETHING OF VALUE TO YOUR PROSPECTS, CUSTOMERS AND EMPLOYEES This FREE report is an example of giving something of value. We could easily charge for this information. To be TRULY successful in your business, you must show that you care about your prospects, customers and employees by giving something of value for FREE. One way successful businesses do this is by offering advertising specialties. The promotional product advertising industry is a $19 billion dollar industry and many companies annually invest to have their logos imprinted on watches, jackets, shirts, hats, bags, calendars . . . etc. You should utilize these promotional products to build loyalty, improve employee performance & company image, attract customers, revive inactive accounts and generate new prospects. 4 For more information on using promotional products for your business, please complete the following online forms based on your needs: • Promotional Product No-Charge Consultation • Promotional Product Company Store Program Services Please complete our Prospect Generation No-Charge Consultation form so that we can develop a cost effective direct marketing program for your organization. Internet Marketing Companies are interested in generating leads of people who are actively searching for a need. SEO & social media marketing is perfect for attracting people who are searching for solutions over the Internet. I offer via National Positions a program called Internet Marketing 3.0 which is a complete 3 step Internet marketing program designed to make your business' website dominate the market through the effective integration of: (1) Search Engine Optimization, for your keywords, content, and linking. (2) Name Branding and all aspects of Social Media such as social profiles, social bookmarks, and blogs both on and off site, press releases, article submissions, videos and video optimization, FaceBook, Twitter and more. Search engine spiders are constantly crawling off site content and social media has become extremely important in garnering rankings. (3) And finally something we call Conversion Booster, which increases the sales revenue conversion rate of your website traffic without increasing your advertising budget. Until recently only the large companies with massive budgets had the resources to perform multivariate and split testing. Today with National Conversion Booster and Google Website Optimizer, companies of all sizes can boost their conversion rates. Companies can see their conversion rates increase by 100%, 200% or even 300% while those that don’t test will see their orders decline and have no idea who stole their business away. Please review the following YouTube video by clicking the following link: Internet Marketing 3.0 If you are open to it, I would like to offer you a free no charge consultation and analysis of your website, and a presentation of National Positions Internet marketing services and how National Positions can benefit your business. It is an educational experience, and will take 45 to 60 minutes. Please answer the following questions so I can better prepare my Internet marketing analyst for our scheduled online meeting: • Who are your three main competitors? • What SEO company are you working with right now? • What are you doing to drive traffic to your site besides SEO? • What are you spending on Pay-Per-Click (PPC) on a monthly basis? • What other types of advertising are you using? • What are the top keywords your clients are utilizing to locate your products or services? • Are you currently utilizing any social media marketing like Facebook, Online Video (on YouTube), LinkedIn and Twitter? • What is the conversion rate for your top landing pages? • What are 2 or 3 core issues you would like to have addressed at our meeting? • What is a good time for us to have the meeting? Based on my 20 years of sales & marketing experience, the best way to generate only hot or warm prospects is the following: 5 (1) Referrals (2) Internet marketing (this involves SEO & Social Media marketing, pay-per-click, using white papers, e-mail campaigns and online videos) (3) Postcard marketing design to motivate prospects to go to your website and/or call your business (4) Direct mail sales letter designed to motivate prospects to go to your website and/or call your business When people contact your business they are usually looking to invest in a product or service. The four above marketing techniques are designed to influence a prospect to contact the company. This shortens the sales cycle. Numbers (3) and (4) can be expensive. Many businesses are choosing numbers (1) and (2) because it is not as expensive as postcard & direct mail sales letter marketing. B2B Telemarketing Telemarketing is the ability to contact decision makers via phone and influence them to consider buying your service or product. Telemarketing is generating prospects over the telephone and Telesales is generating prospects and closing the sale over the phone. Telemarketing is used by companies that desire hot, warm and cold prospects (any prospects-anyone who is interested in a service or product regardless of length of sales cycle). They are not concerned about a long sales cycle. In most cases, you will have a longer sales cycle by using telemarketing-most people you contact are not ready to buy right now (hot prospect) or soon (warm prospect)-there is not a sense of urgency. Telemarketing still is a good way to generate prospects who are interested in your service or product if you don't mind long sales cycles. It is also a good way to follow up after using referral, Internet, postcard and direct mail sales letter marketing techniques. Business-to-Business (B2B) telemarketing is a cost efficient medium for advertising. Consider that many long distance companies offer unlimited calling packages. Ultimately, this will save any company THOUSANDS OF DOLLARS by utilizing telemarketing as a lead generation medium. According to Get Clients Now! (1999) by C.J. Hayden pg. 9-19, the most effective marketing strategies for service businesses are: • Direct Contact and Follow Up • Networking and Referral Building B2B telemarketing is PERFECT for direct contact. Many companies are utilizing telemarketing to cost effectively generate quality prospects. • According to Telesales (2003) by Steve Schiffman pg. 41 and 48, the average telesales/sales ratio is 20 conversations with decision makers = 5 prospects = 1 sale (20:5:1). • EVERY SALE MUST BE REPLACED BY 5 ADDITIONAL PROSPECTS • 80% of sales are made on the 5th to 12th conversation with the same prospect (National Association of Sales Executives) • Best time to call is between 9:00 am to 10:00 am to reach someone for conversation (American Telesales Association) 6 Dial Spins It is very important to make enough dials per hour so that you can speak to a sufficient number of decision makers. According to the Advertising Manager's Handbook Second Edition by Bob Bly (pg. 365), the average dial spin metrics are presented in the following tables. Businesses telemarketing dial spins Dial spins per hour 20 to 40 Completed decision maker presentations per hour 5 to 9 In reference to B2B telemarketing: The larger the company (500 and more employees)-the more difficult it is to get in contact with a decision maker. In the Fortune 500 world of B2B Telemarketing, voice mail is a very popular method of communication for cold calls. Kennard L. Brown can develop a solution customized for your company that will give you the ability to effectively & successfully contact Fortune 500 company decision makers. Consumer telemarketing dial spins Dial spins per hour 40 to 60 Completed decision maker presentations per hour 9 to 15 Sales Contact Management Software Manage your daily tasks, build your relationships, and turn contacts into customers; all in one place, available all the time and from anywhere you want to work. Oprius allows sales representatives and distributors to import data and get to work immediately. The service is designed for ease-of-use, so anyone with basic computer skills can quickly learn the intuitive navigation. The subscription-based Internet service uses the same secure technology as online banking, making your information safe at all times. Use your calendar and define the tasks you need to accomplish. Review your contacts, assign them to groups, and make them an integral part of your sales process. In the Relationship Builder, you can create and schedule sales campaigns that address whole groups of customers in a pre-defined, step-by-step process. The Phone Assistant gives an overview of your up-coming calls from which you can focus in on each contact and the next steps you want to take. It allows you to schedule phone appointments -- using your calendar -- and shows each contact’s details and call history. In addition, pre-defined and proven call scripts -- all part of the package -- can be associated with any selected contact, which can help greatly in closing your sales. Click Oprius to test drive FREE for 30 days. 7 Center for Technical Communication Publishing CTC Publishing is the publishing company of Bob Bly, the man McGraw-Hill calls America's top copywriter. Bob has written copy for more than 100 companies including Boardroom, Phillips, IBM, Medical Economics, AlliedSignal, and Lucent Technologies. He is the author of more than 60 books and a columnist for DM News and Early to Rise. Bob Bly's knowledge about copywriting, direct response & online marketing has greatly helped Kennard L. Brown and Bob Bly's manuals and reports will give you vital knowledge about copywriting, direct response & online marketing. Please click the following for more information: CTC Publishing Marketing Tools For Your Business Click on the images below for more information on the following innovative marketing tools for your business: © 2011 Kennard L. Brown 8
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