Module 8
Section 3 – Marketing with a Purpose
Machine if no one knows about it? Too many great ideas have languished and
died on the vine because no one heard about them. What’s the solution? A
strong marketing strategy is the answer.
You may not know it yet, but cash is everywhere. It’s hiding behind the grass that
is a little overgrown. So go and offer your service. It’s peeking out from behind
dirty windows. So grab your bottle of cleaner and head over. It’s on top of a
broken shelf. So grab your screwdriver and make an offer to fix it.
The opportunities to make money are everywhere, but people are not going to
just come up and knock on your door unless you tell them where to find you. The
true essence of marketing is simply reminding someone they have a need in their
life and you have the ability to take care of it for them.
Money comes easily and frequently when you open yourself up to receive it. You
can accelerate the process when you understand not only where the money is
right now, but that it is up to you to find how to shift it into your bank account.
Getting that new money into your hands is not as hard as you might think, in fact,
it’s quite easy when you realize one vital truth about your Cash Machine – IT’S
NOT ABOUT YOU!
By now, you may have realized that the success of your Cash Machine depends
on your ability to see a need and be the one person to step up to provide a
solution. Your service or product is the one and only thing your customer will be
looking for if you’ve done your job right – and it all starts with a conversation.
It’s time you to open your mouth and start talking about your business. Your
willingness to listen to what people are saying and then share about your
business will be enough to get the wheels turning on your success. In the first
two sections of this workbook, you’ve equipped yourself with the tools you need
to create endless possibilities. The fastest path to cash is opened by exploring
your existing skills and creating a road map of how you will leverage them.
You’ve calculated the numbers that you need in order to reach your goals and
you know how much cash it will take to get there.
Now that those steps are complete, you’ve learned even more about your
audience by having conversations about your product or service. During all of
these conversations, you may have noticed a recurring theme: CUSTOMERS!
The focus of a conversation about your product or service should be on you’re
your potential customer. It is NOT about you. With each of these conversations
with friends, family, and potential customers, you began to understand more
about how your audience relates to your product or service and what works and
doesn’t work for them.
When you’re talking about your product be sure to know what question your
product or service answers. Know what area of frustration your product or service
eliminates. It’s much easier to do your own marketing and sales when you know
that you’re creating a real value for your customers and making their life better.
This is the beginning of your ongoing marketing strategy. Having the
conversation and getting the word out about your business is a daily effort. You
must spend time every day in the streets, at local businesses, networking with
other entrepreneurs, and looking your potential customers in the eye.
As you expand your marketing strategies beyond the one-on-one conversation
you will notice that those strategies are the same conversations you have always
had about your product or service. The difference is that only now the
conversation is happening in an email message, newspaper, radio, or internet
advertisement, or a different format. But, it’s still the same conversation.
You can never talk about your service or engage your customer too much
regarding your product and service. Keep in mind that every conversation you
have about your product or service will help you fine tune your marketing
message and improving the efficiency of your sales process. So get out there
and start talking, today!
Creating the Cash You Want
As you start marketing your Cash Machine, you will go back to the Product
Funnel you created in the previous section as a resource and guide. The funnel
tells you how many customers you need to reach your financial goals and now
it’s up to your marketing efforts to get those people into your funnel.
To calculate the necessary impact of your marketing efforts, you must return to
the product model you created in the previous module. Just as your product
model determined the price of your offerings, your ongoing financial goals will
guide you toward your daily activity. Imagine that you need 10 new customers
every month to reach your goals. That’s an attainable goal as long as you have a
method for attracting those customers. Now imagine that your marketing efforts
yield 1 new customer for every 10 people you talk to. Based on that information
you can calculate that you need to talk to at least 100 people to get your 10 new
customers.
Not every marketing strategy will be so simple, but I think you get my point.
Knowing your product funnel and your goals will assist you in setting your day-today
strategies for success. If you know you have to talk to 100 people to make
your Cash Machine work, you could divide that up and make it your goal to talk to
5 new people every day about your business.
As a beginner, your task is to have a conversation about your business or sell
your business with a minimum of 21 people per day, regardless of your goals.
These conversations can happen anywhere, ranging from your local coffeehouse
to places of business. For some of you, these conversations may even be as
simple as knocking on all of the doors on your street. Or picking up the phone
and making calls for an hour.
Remember, the more people you talk to, the faster you will get cash in the door
and the better your business will become. So you can’t talk to too many people.
For your business to be successful, let your community know that you are in
business and how to find you – get them working for you. If they are convinced
that you can provide a solution to a real need, they will do some of your work with
“word of mouth” advertising, one of the most effective forms of marketing there is.
Marketing is the Answer to Everything
Although the conversation is at the heart of everything, the success of your
efforts comes down to creating action and urgency. Each of these conversations
has a distinct purpose and meaning to your business. Within a few seconds, you
will learn to identify how you can serve your potential customer and how you will
guide them there. This module is designed to help you understand how to
increase awareness of your brand, attract customers, and create opportunities
for your customers to purchase. As I have said hundreds of times to my clients,
“Marketing is Everything!” No matter how you look at it, you are constantly doing
marketing. The clothes you wear, how you do your hair, and even the car you
drive is all a form of marketing – you are trying to sway public opinion and tell
people around you something about yourself. You should take the same
approach with your business.
You are now in the business of engaging people in a conversation about the
needs they have in their life and the solution you bring with your business. How
you engage in that conversation will depend on your resources, the type of Cash
Machine you have, and who your target consumer is.
From a passing conversation in an elevator to a 50 foot billboard on the highway,
there are countless ways to engage with your potential customers in a
conversation about your business.
In the business world, we segment marketing strategies into two categories,
online and offline. These primarily deal with internet-based strategies or more
traditional strategies like print and posters.
To give you an idea, here are some examples of marketing efforts:
OFFLINE MARKETING ONLINE MARKETING
Advertisements Websites
Radio Advertisements
TV Sponsors
Direct Mail Pay Per Click/Search Engine Optimization
Ad Cards Social Media
Flyers Blog Posts
Referrals Expert Columns
Joint Ventures Syndication
Public Speaking Affiliate Programs
Endorsements Landing Pages
As you can see, there are many ways to reach out to potential customers. This is
just a basic list and there are many more options. While these are some of the
more common strategies, I encourage you to get creative and find new ways to
reach your customers in an effective way.
The most effective marketing strategy includes the following four key steps:
1. Research
With good research, your efforts are most likely to engage your target audience
both effectively and efficiently.
Since almost all products or services address certain needs that a particular
demographic may have, your marketing efforts should focus on the areas most
likely to appeal to that demographic and be accessible in the places they are
looking for solutions. For example, an advertisement in a newspaper is far less
likely to engage a younger audience who is used to surfing the web – so don’t
waste your money. An online advertisement or social media strategy may be
more likely to catch their attention.
2. Engagement
Bold statements or questions can engage your target customer and you can
quickly capture their attention when you address them directly.
Sometimes, the first statement in your marketing effort can be “make or break”
for getting the attention of your audience. You are engaging the customer in a
conversation that will happen entirely in their own head. All statements or
questions should directly reflect how your product or service is valuable to your
potential clients. Start out by asking provocative questions about their potential
need. Make a statement about how things might change in their life if this need
were taken care of.
This is particularly important when dealing with a service that can be
uncomfortable to some. This was particularly noticeable to our senior care case
study, Jennifer and Todd. They engaged their audience by addressing the fear
of most senior citizens – being “put out to pasture.”
Their call to action focused on how seniors could get the assistance they need on
their own terms. As a result, both the seniors and their children were drawn into
the marketing conversation about their services.
3. Call to Action
In any marketing strategy you must make it crystal clear to the potential customer
what they should do next. Your effort has clear and easy to understand directions
of what you want your audience to do. Are you asking them to visit a website?
Are you asking them to call you?
If you want them to visit a website, tell them how to do it. If you want them to call
you, tell them the number and say, “call now.” The clear Call To Action will
ensure that people who have been engaged in your conversation are ready to
take the next step.
Everything you do as a business owner should focus on drawing new leads into
your funnel. As an entrepreneur, you will find that your most valuable asset is
time. So, why do so many entrepreneurs fall into the trap of spending precious
time and money on marketing that does not have a clear “next step” for the
audience to take? Every conversation you have, in person or through some other
form of marketing should end with a Call to Action. If you’re talking to someone in
person, that means giving them a business card or flier. If you’re using an
internet ad, that means a clear button that takes them to the next step. Whatever
the conversation, always invite the person to TAKE ACTION.
Again, this demonstrates the importance of having a diverse product funnel. In
situations where you are unable to sell directly or only have a few seconds, your
free offer can be key to generating new leads. As we discussed with your
Product Funnel, the wide area of your process is where it is easiest to say “YES”
and take the next step. Your marketing efforts should always have a Call To
Action that is easy to do, like a phone call, button, text message, or email.
Although having a lot of conversations can be fulfilling, it will not result in more
cash in your bank account. Without that Call To Action, you may be having a lot
of conversations about your business, but you’re not making any new money or
bringing in any new clients. The Call To Action is the last step in telling people
how to find you.
4. Tracking and Goal Setting
You can’t just blindly start marketing your Cash Machine if you don’t have goals
and a way to track the results. How do you expect your campaign to perform?
How do you define success or failure? What do you need to actually measure?
Because there are so many ways to market your business and engage in a
conversation with a customer, it would be unwise to just blindly start throwing
your time and money at one strategy or another without a plan and a way to
evaluate success.
You may find that internet marketing is bringing in five times (5X) as many new
customers as the newspaper, so why would you keep spending money on the
newspaper ads if they are not working? On the surface, it seems like the internet
would be the better choice, but if you don’t keep track, you’ll never know.
Sure, it might seem like a five fold increase in the number of new customers is a
good result, but not if it costs ten times as much money to get that result. Imagine
you spent $100 for an internet ad and got 5 new customers. If you do the math, it
cost you $20 to get each new customer. But, if you get 1 new customer from an
ad in the news paper that only cost $10, you’re mathematically spending half as
much and getting the same result. It would only be $10 to get each new
customer.
Every conversation you have with your audience will result not only in potential
sales, but also a greater understanding of the value of each new lead and client.
This is how you calculate the Cost of Acquisition, the cost to get a new customer.
Let’s take a look at a short example:
In the example above, you spend $1,000 on a marketing campaign, resulting in
10 new customers for your business. So, your cost of acquisition was $100 for
each new customer. Now, you have a basis for comparing different marketing
strategies. If you find a strategy which costs only $50 to acquire a new customer,
you can get twice the number of new customers for the same expense.
Always remember, your time is an asset too. When you calculate the amount of
money to spend on your marketing efforts, include the cost of your time. Put a
value on how much your time is worth and use that as the basis for the cost of
your new customer. Don’t leave anything out, no matter how small you think it
may be. Even the cost of the staples you used to post your flyers has a value and
is part of the cost.
Over time, each of your marketing campaigns will slowly become more effective
as you learn to fine tune your message and learn more about your audience.
However, at first, you will test several different types of marketing strategies and
discover the most effective types for your Cash Machine.
Initially, focus on low-cost options that can get your message out to your target
customers for the least amount of money. It may not be glamorous, but
sometimes a flyer from your copy machine is the best you can do in the
beginning – and that’s ok. As you grow, you can invest in diverse marketing
strategies and ensure a steady stream of customers into your product funnel as
you are growing your business.
Marketing Types
There are 4 types of marketing which have very specific purposes. They are
awareness marketing, direct marketing, viral marketing and relationship
marketing.
Let’s take a look at each one and consider some ways you can implement these
marketing strategies both online and offline.
Examples of Marketing Types
Marketing Type Purpose
Awareness Marketing
An introductory effort designed to help
a client learn more about you and your
business. This will often be the first
exposure for a new lead.
Offline Examples: Public speaking,
Community Events
Online Examples: Free Teleseminars,
Articles or Blogs
Direct Marketing
Any form of marketing that focuses on communication directly between your
business and the customer.
Offline Examples: Flyers, Direct Mail, Telemarketing
Online Example: Email Marketing
Viral Marketing
Creatively designed marketing efforts that promote your business at low or no
cost, but create conversation among your audience.
Offline Example: Unique Public Events
Online Examples: Social Media, Video
Marketing
Relationship Marketing
Marketing campaigns specifically
focused on creating value for new or
previously existing customers and
encouraging them to stay engaged with
your business.
Offline Example: Customer Service,
Followup Calls, Referral Programs
Online Example: Email Marketing,
Newsletters, Special Offers
The 4 P’s of Marketing
Although there are a variety of methods of marketing your business, the core
strategy always lies within four simple concepts.:
• PRODUCT
• PRICE
• PLACE
• PROMOTION
Integrating these points into your marketing strategy will ensure that you have
provided all the information necessary for your customer to make an informed
decision about you and your product.
Let’s take each of this individually.
Product:
The product (or service) itself is an integral part of your marketing. Everything
from how the product is packaged, how it’s presented, and the value it provides
to the client will set the tone of their experience with your business.
What makes your product stand out is defined as the unique selling
proposition (USP), which is the distinct advantage a customer will receive by
choosing your business or product over another. For some of you, this
advantage may lie in the benefits of the product or service itself. For others, it
may be the customer experience that you or your team creates to ensure the
client’s satisfaction.
The distinctions in your business will become clear through conversations with
model companies and mentors.
In the cutthroat world of carbonated beverages there are a few companies that
stand at the top of the heap, Coke and Pepsi. At the most basic level, both
products are virtually identical, carbonated water and syrup flavor. Both are
considered cola drinks and they are very often served in place of each other
when one is not available. But, the fact is, these companies are spending millions
in marketing dollars to teach consumers the UNIQUE value of one over the other.
These companies are selling a near identical product but you would never know
it from their marketing efforts. In fact, their loyal consumers will swear that one is
better than the other. They have bought into the marketing and believe the
carefully crafted messages created by each company. In the end, it doesn’t
matter which is “best” as long as people are buying. When all is said and done,
Coke is not losing any sleep over a $2 million ad campaign when it creates 30
million cans being sold generating some $15M in revenue!
Price (value):
For the sake of this conversation, I will clarify that price does not necessarily
mean the overall retail price of your product or service. In marketing,
establishing the value of your product or service can be a powerful tool in
generating interest.
At the very core of the “Price/Value” concept is the sense of urgency and
scarcity. Offering discounts just for the sake of offering a price break can often
lead to a negative perception about your business. It will cause some people to
perceive your product as being cheap. However, using a short-term price break
to make the offer more urgent is a strong tactic. When combined with an
additional scarcity incentive, such as adding an interesting bonus that is only
available for a limited time, this will often increase your sales.
We see this concept play out in the retail space. Some stores really get the idea
of value as it relates to urgency and scarcity. When Nordstrom has a yearly sale
people line up around the corner to get in at the crack of dawn to take advantage
of the savings. On the other hand, mall jewelry stores that seem to always have
everything 50-80% off come across as cheap and desperate.
Consumers have a good sense of what is really valuable and they are often will
to pay more for a higher quality product.
I teach these tactics at our workshops and they are used daily by our case
studies. Joe O., our technology expert, regularly offers his teleseminars at
speaking events, but will add on an additional “exclusive” session with clients that
purchase before the end of that event. Samantha, our event planner, typically
creates special bonuses around the holidays for exclusive services or
decorations.
Abusing urgency, scarcity, and discounts can create a negative perception of
your business. Keep in mind, your offers should be diverse and reflect different
areas of your product funnel – you only offer added-value options as a strategy to
move someone further into the funnel. If you are offering a special discount at
events, you should not offer that same discount in all of your promotions – it
makes it feel less urgent. Furthermore, your discounts should never be TOO
drastic – people get real suspicious when you can offer an 80% discount.
Place:
The “place” is completely dependent on the call to action of your marketing effort.
You must have a place for people to take the next step. If you go to the trouble of
getting their attention and never tell them where to go next, you wasted your time
and your money.
Before beginning your product promotion, you must have a clear pathyou’re your
customer to take. Know in advance what you want them to do. You must know
where will the transactions will take place. Are people buying online or directly
from you at an event? Will you handle the transaction place in person, over the
phone, or online?
Can clients purchase from a third party or distributor? Be very clear on the
process. This will eliminate confusion and ensure the fastest path to cash.
Promotion:
This component of your marketing includes advertising, merchandising,
promotions and publicity. Your message must be interesting, compelling, distinct,
and credible. Your two or three most effective marketing efforts should be your
most frequent activity. In addition, your promotions should grow and change
over time along with new offerings developed from customer feedback.
Your promotional efforts are most impacted by your research into your target
market. Let your market guide you in determining when you should market, how
often, and in what fashion.
Target Marketing
One of the best ways to increase the effectiveness of your marketing is through
target marketing. This means getting clear about who is your ideal customer and
then marketing to them directly.
This will affect where you advertise or promote your business. It will also affect
the words you use, the colors you select and many other elements in your
marketing.
ACTION STEP: Identifying Your Target Market
To get started, take time to do some research. This will help to improve your
effectiveness in marketing your products and services and finding new
customers.
Answer the following questions:
• Who is the person or business you are targeting with your product or
service?
• What are the demographics of your target client?
• What is the typical age range of your target client?
• What is the average income range of your target audience? Where do
they live? Do they own or rent?
• What are the behavior patterns of this market? Do they spend a lot of
time on the computer? Do they watch television? Do they attend
community events? What are their interests?
You can download a blank form in the Education Center at:
www.__________________________.com.
Case Study Example: Jennifer and Todd H.
Business: Senior Care Services
Question & Answer
Q. Who is the person or business you are
targeting with your product or service?
A. Senior citizens suffering from chronic health
or physical conditions.
Q. What are the demographics of your target
client
A.
Q. What is the typical age range of your target
client?
A. Adults aged 65 and over and their adult
children (aged 30-40).
Q. What is the average income range of your
target audience? Where do they live? Do
they own or rent?
A. Services are generally needed by middle to
upper class seniors. They are generally
long-term homeowners who are not
interested in leaving the place they have
lived for most of their adult life.
Q. What are the behavior patterns of this
market? Do they spend a lot of time on the
computer? Do they watch television? Do
they attend community events? What are
their interests?
A. The seniors targeted typically get
advertisements through newspapers,
physician referrals, and telemarketing.
Adult children can be engaged through
similar means, as well as targeted online
marketing.
Case Study Example: Nancy B.
Business: Afterschool Life Skills Program
Question & Answer
Q. Who is the person or business you are
targeting with your product or service?
A. Households with one or two working
parents.
Q. What are the demographics of your target
client?
A. Both genders, though mothers are usually
more interested.
Q. What is the typical age range of your target
client?
A. Adults aged 25-40.
Q. What is the average income range of your
target audience? Where do they live? Do
they own or rent?
A. Most families in the local area make
anywhere from $25,000-$45,000 a year and
cannot afford high end childcare. There is a
mix of homeowners and renters.
Q. What are the behavior patterns of this
market? Do they spend a lot of time on the
computer? Do they watch television? Do
they attend community events? What are
their interests?
A. Most of the families in the program are
working class. The parents only have a few
hours after work to enjoy with their families
and usually need childcare after the kids
are out of school. The families spend a
reasonable time watching television and
using the computer. They do not normally
attend community events.
Case Study Example: Samantha W.
Business: Event Planning
Question & Answer
Q. Who is the person or business you are
targeting with your product or service?
A. Adults that need assistance with planning a
personal or business event.
Q. What gender or race is your target client?
A. Both genders. Men are typically more
interested in full event planning services,
while women generally prefer basic support
or the kit.
Q. What is the typical age range of your target
client?
A. Adults aged 25-50
Q. What is the average income range of your
target audience? Where do they live? Do
they own or rent?
A. Middle to upper-class professionals. They
are typically homeowners.
Q. What are the behavior patterns of this
market? Do they spend a lot of time on the
computer? Do they watch television? Do
they attend community events? What are
their interests?
A. Our audience can regularly be found on a
computer, while they are using television
and radio less and less. Couples planning
a wedding can normally be found at
community trade shows or wedding events,
but we normally have to “go to them” rather
than waiting for them to come to us.
Case Study Example: Joe O.
Business: Website and Social Media Consulting
Question & Answer
Q. Who is the person or business you are
targeting with your product or service?
A. Adult professionals who are looking to
expand their business online.
Q. What gender or race is your target client?
A. Both men and women.
Q. What is the typical age range of your target
client?
A. Ages 40-65, but some younger customers
from time to time.
Q. What is the average income range of your
target audience? Where do they live? Do
they own or rent?
A. Business owners and entrepreneurs.
Q. What are the behavior patterns of this
market? Do they spend a lot of time on the
computer? Do they watch television? Do
they attend community events? What are
their interests?
A. Clients normally hear about us at local
business events, but sometimes find us
through our online marketing. We don’t see
a lot of response to traditional advertising.
You can download a blank form in the Education Center at:
www.__________________________.com.
Developing Your Marketing Tactics
Now that you’ve identified your target market, the process of identifying specific
tactics begins. We’ve talked about the different types of marketing strategies that
can be used to engage customers in a conversation about your Cash Machine.
Any good marketing strategy will do more than just reach as many clients as
possible, but it will also generate awareness of your brand and interest among
your audience – the people who may not be ready to buy your product or service
today, but may do so in the near future.
In the early stages of your business, you’ll be looking for ways to generate as
much interest as possible. This requires an ongoing, daily commitment to reach
as many people per day as possible. Your first marketing campaign will typically
be broader than future campaigns, as you have not yet identified the most
effective techniques for reaching your target market. Over time, you will begin to
localize your efforts into the specific niche strategies that generate you the most
business.
Marketing is one of the few areas where “sweat equity” (the time you put into it)
can mean just as much as spending a lot of money – remember, your time is
money, but in this case, it’s money you can spend without taking it out of the
bank. The outcome of your efforts will always reflect how much research, time,
and effort you have invested in the process.
Remember, time is money and you must quickly identify and change areas that
are ineffective or disruptive.You’re not going to get anywhere if you spend your
time on strategies that don’t pay out. You have to be flexible as you learn what
works and doesn’t work – be willing to switch tactics and pursue the things that
are getting results.
To keep yourself organized, I always recommend that you keep a marketing
calendar. Plan out your week or next few weeks in advance with the specific
activities you plan to complete. On those days, you will commit to leave the
house and you will not return and your day won’t end until you’ve met your goal.
Not only do you need to spend time on marketing activities, you must invest time
planning future marketing campaigns for your business. It takes time to create a
marketing campaign plan, write copy for an advertisement or a website, and
create free resources to encourage people to opt in. The better plan, the easier it
is to delegate part of the work to your team members to accomplish.
Take time every day to work on your marketing and spend time planning and
preparing. As time goes on, you will be able to plan these activities further in
advance and they will require much less hands-on maintenance.