Fundamentals of Marketing
by: Allan C. West
This is an Overview
of different types of “Marketing” based on my experience’s working with various
types of “Businesses” around the Country. While the "Products or Services" may be
different, the basic fundamentals of seeking and finding “New Prospects” are
still the same. There is an age old theory that explains the overall approach
to Gaining New Business, and that is….
The further away
you get from Direct Contact with your new prospect, the more prospects you have
to see in order to gain a Customer or Client.
The theory is in fact a good
description of how some Businesses choose to solicit New Prospects. The Key
Factor in Marketing and Sales is, understanding which Avenue is best suited for
maximizing your potential to grow your Business.
First, it’s imperative to understand that there are 5 basic ways to bring a Prospect to the Sales table.
1)
The Mailer: Always a great means of presence in
a world where many other companies may be offering the same products or
services as you. It certainly gets your name out there. But in regards to
“return on the dollar”, this simply isn’t a rewarding endeavor. This type of
Marketing is sometimes referred to as “fishing” as it is usually done to TEST
certain Markets or Zip Codes. Send out 5,000 pieces in bulk mail, and on the
average, you’ll get less than 1% response from the recipient. At best, get less
than 50 Qualified Leads. If you apply
the national average on Sales Closed which is roughly 1/3, then you’ve “Sold”
16.6 products or services.
16/5000
2)
Telemarketing: In a Smile-n-Dial environment, the
odds are slightly better than sending a mass Mailer. This method is the most
common as it’s usually the most practical. It’s fairly easy to get people to
sit and talk on the phone for as long as you’re willing to pay them. Now you
can achieve basically the same results as the Mailer with only 1,000 people. If
you Cold Call 1,000 persons…. You’re
still (on the average) at less than 1% response from the call list in setting
appointments or generating leads. On a good day, you’ll generate about 45-50
leads from a 1,000 name list “If” you get everyone to answer the phone. Then,
assume that you’ll Close the National Average of 1/3 and make 16.6 sales.
16/1000
3)
Door to Door: Also known as “Face to Face” or “Business to
Business” is where you Cross the Line and get Serious. This is where you
separate the Rookies from the Pro’s.
Face to Face is the first stage of Direct Contact. Now you’re Up Front
and Personal. It’s a proven fact that it’s Harder to Say No when you’re looking
them right in the eye. The Law of Average suggests that If You talk to 100
people today, your Response of Interest will be approximately 48%. This means
almost Half the People you talk to will at least show some interest in what
you’re saying. Now take the half that’s Interested, and Close the Deal at a 33%
closing ratio (National Closing Average) and you’ve got about 16 Sales.
16/100
4)
Referrals: These Leads come from the “Smart Work”
you did yesterday. If you have a Service or Product that you can deliver at a
Fair Price. All you have to do is Deliver it well and people will talk.
Consumers will Buy from People they Trust and from People they Like. If you do
a Good Job, They’ll Like and Trust You! Every Referral doesn’t automatically
turn into a Sale. You’ll still need to cover some basics like Features and Benefits
but you should still Close at a higher ratio than looking for the Business
because the Business was looking for you. If you get 100 referrals, you should
turn at least 66.6 into Sales.
66/100
5) Walk-Ins:
If you happen to have a Retail Location, you’ll notice that walk-ins don’t
happen right away. They are usually generated as a result of Outside
Advertising or as a result of a previous Door Call or a Telemarketing Call,
nevertheless, walk-ins are Critical to your Bottom Line and should be handled
by a Qualified Associate perhaps on a salary with Commission Incentives, and
treated as a Priority Also you should never make a Walk-In wait for the “Good Service”
that they came in for. If you have Customers waiting in line day after day, you
should consider hiring more Associates. The Law of Average Suggests that If 100
prospects walk-in to your business with the intention on Buying…then they will
do just that, unless….The Associate doesn’t know the Product or Service, or If
the Associate has a bad attitude, or if there are time constraints on the visit
there. So Know your stuff, Be Courteous, Don’t make them wait!
If you get 100 walk-ins, you should
turn at least 80 into Sales!
80/100
Allan C. West
May, 2008
