Virtual Impax

Effective Strategic Digital Marketing

Building your business

Small Business Marketing- The Yellow Page Directory’s Place in your Marketing Mix

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The recent post “Does your small business need to invest in yellow page advertising?” a comment was left stating that “the internet is for browsing – the yellow pages are for buying. ”

I’m sure that comment was left by someone who makes his or her living selling yellow page advertising.  It’s a GREAT line – but it exposes an essential “truth” .    It acknowledges is that people – in general-  are going to the internet FIRST to research their purchasing decisions.   When they don’t find the answers online that’s when they pick up the yellow pages to buy.

With that in mind, yellow page advertising does have a place in the marketing mix for many businesses.  However, the printed yellow page directories are making the death march to extinction and if that is the sole way you advertise your business – you might want to start working on a new marketing strategy .

I got my start in a  “traditional” advertising agency in the mid 1980’s because there wasn’t any other KIND of advertising agency way back in the stone age.   In those days we wore primitive clothing fashioned from animal skins and chipped pithy marketing messages onto cave walls and onto stone tablets by firelight. Even as we battled sabre tooth tigers along the way to client meetings, we still recognized the need for our client’s business to be listed in directories.

In those days (as now) the yellow page advertising representative’s opinion was that our clients needed a full page, four color ad in the yellow pages.  As the appointed keepers of the advertising budget – we at the agency held a different point of view.  The result were many heated and lively exchanges and as a result, I have few friends in the yellow page advertising industry.  😉

It’s my belief that a business (big or small) that is engaged in a strategic marketing campaign created with the target customer in mind doesn’t NEED a huge display ad in the yellow pages.   Those dollars can be much more effective when spent in other media.

In my book,  Beyond the Niche: Essential Tools You Need to Create Marketing Messages that Deliver Results, I recommend business owners devote about 7% of their marketing budget to listings in directories.  That’s not a lot but it’s more than enough if you’re spending the other 93% wisely.

For example, if you are a brick and mortar business owner who is in the heating and air conditioning business – then I would NEVER recommend that you stop advertising your business in the yellow pages.  However, I would also not recommend you spend the majority of your advertising budget there either.

Remember – by the time someone is looking for your business in a directory – they’ve already made a decision to purchase.   That’s why I recommend that the other 93% of your marketing budget should be spent influencing people to choose your business BEFORE they decide to purchase.

Wouldn’t you rather be talking to prospective customers BEFORE they’ve decided to buy?

The yellow page advertising rep desperately wants you to believe that the prospective customer who is picking up the yellow pages is operating from a “clean slate”.   In this fantasy land, your yellow page advertising rep will provide LOTS of “documentation” which “proves” your prospective customer opens the yellow pages and INSTANTLY picks the largest, most colorful ad. However, that’s not how advertising works in the “real” world. The example I use to get people thinking about how the yellow pages really work is to choose something they don’t need every day -like  finding a roofer.

The exercise goes something like this- pick up a copy of the yellow pages and start looking for a roofer.  Pay attention to what’s going through your mind as you scan through the pages.  Chances are you’ll notice that you’re searching for is a name that is FAMILIAR!!!

See, the only way the largest most colorful ad in the yellow pages is going to “win” is if you have absolutely NO CLUE of what roofing company is reputable in your area.  Otherwise, the race is going to to go the business with the “best” reputation – the one that is MOST familiar!

For example, yesterday as I was driving to the grocery store, I heard an ad on the radio by a local roofing company.  Right now, I can’t tell you the name of the company – but if my roof started leaking tomorrow – that ad would be having an influence on me.  It would be working on my subconscious as I began my search for a roofing contractor.  That roofing contractor’s name is going to be familiar and I’m more likely to call him than anyone else in the directory.   If I hear his ad again today, that familiarity will be strengthened.   If I hear that ad another 120 times I’ll probably be able to recite the roofing company’s name off the top of my head.   (That is how advertising works.)

Here’s the rub: If I were to pick up the phone and call, if  the receptionist were to ask how I “found” their business – I’d say, “The Yellow Pages!”  While that would be true – but that wouldn’t be the WHOLE truth!   The roofing contractor’s radio ad would literally be the unsung hero of his marketing campaign.

FAMILIARITY BREEDS BUSINESS!!!!

Smart business owners will have a marketing strategy in place with the goal to build familiarity with their customers.  One way to breed “familiarity” is to create a website that reaches customers while they are searching for answers!  Grab customers at that point and they’ll rarely find their way to the yellow pages!

The problem is that most small business owners have websites that do NOT come up when people are searching for answers to their GDP – Goals, Desires and Problems.

As long as your competitors don’t have a website that provides answers to the GDP of the target audience, then it becomes a game of one upsmanship within the confines of the yellow pages.  However, if you discover how to reach customers BEFORE they head to the yellow pages – how to put your website in front of those prospective customers when they’re researching their decision – long BEFORE they’ve decided to buy – well – then suddenly  the size of the ad in the yellow pages really doesn’t matter at that point, does it?

Smart Business Blogging and the Smartest Dog Contest

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This is a GREAT time to start a business, as long as you don’t create a bad product (Windows Vista anyone), and try to promote it with a poor marketing strategy and a website that does almost nothing.

Running a bad business poorly usually doesn’t make the news.  However, when it’s a HUGE company in the US which chooses to embrace a relatively recent phenomenon of expecting the government to come to the rescue them from their own bad business practices, the story definitely makes the front page.

GM’s recent holiday charity request of the US government was recently denied,  which brings to mind a joke which recently made the rounds.  This joke illustrates a truth we all embrace and that’s the difference between “government” and “business”.

The joke begins with four men who were  sitting at a bar one night.  As the alcohol flowed, the four men started bragging about how smart their respective dogs were.  One thing lead to another and before you know it, a challenge was issued.  The next night, the four men arrived back at the bar with their dogs to prove whose dog was indeed the smartest.

The first man was an engineer who called to his dog, “T-square, show these jerks what you can do.”

T-square took out some paper and pen and promptly drew a picture of a two story home.

The other men were impressed and all agreed that T-square was a pretty smart dog.

The next man,  an accountant thought his dog could do better. He called his dog and said, ‘Spreadsheet, show these guys what you can do.’

Spreadsheet went into the bar and returned with three dozen peanuts. He divided them into 6 equal piles of 6 peanuts, each perfectly stacked into a carefully constructed pyramid.

All the men agreed that Spreadsheet was pretty smart.

But the third man, who was a chemist thought his dog could do better. He called to his dog and said, ‘Precipitate, show these guys what you can do.’

Precipitate brought out a quart of whiskey from the bar, got a 10 shot glasses and poured each shot glass to the brim without spilling a single drop.

All the men agreed that Precipitate was pretty smart.

The fourth man was a government employee – and the pressure was on.  He called to his dog and said, ‘Bureaucracy , do your stuff.’

Bureaucracy jumped to his feet

  • pooped on the paper
  • ate the peanuts
  • downed all the shots of whiskey, one after another.

When he finished the final shot, he then proceeded methodically to hump each of the other three dogs with enthusiasm previously unseen.  However, in the middle of the act with the third dog, Bureaucracy yelped and  then collapsed to the ground.  He immediately announced that he had injured his back.

Bureaucracy filed a grievance report for unsafe working conditions… applied for Workers Compensation… and went home for the rest of the week on sick leave with full pay.

AND THAT ILLUSTRATES WHY EVERYONE WANTS TO WORK FOR THE GOVERNMENT!!

Jokes like this make us smile because we can recognize that the story perfectly illustrates what goes on when a “company” doesn’t have to answer to “customers”.   The business that doesn’t respect its customers is destined for closure unless that “business” is a form of government!

Unfortunately, GM has been operating their business like they’re a branch of the government for the past few decades.

The “problem” with this business model is that GM doesn’t have taxpayers which have no choice on whether or not to support the business.  Instead, GM has customers who cast their “vote” in the market place every time they purchase an automobile.

Unlike government, GM has competitors who are making cars that customers want to buy.   Unfortunately (for GM), they don’t have easy access to the US taxpayer’s tax dollars.

Fortunately, the representatives in Congress must face their own “customers ” a.k.a. the “voters” decided it was best to just say “No” to yet another charity request from a bloated inefficient business.

I personally think the uproar in Web 2.0 is part of the reason for the recent denial. I honestly think that if there hadn’t been a thousand voices speaking out in the blogosphere about the facts that the vote would have gone much differently.  Not only were blogs pointing out the fact that GM just received a huge sum as recently as in September 2008 – but they were also pointing out the fact that the unions weren’t participating in the proposed “bailout” at all.  I believe that bringing those “facts” to the public attention played a HUGE role in the vote.

If you’re wondering what all the “fuss” about blogging is all about – the information disseminated by tens of thousands of blogs may have actually changed the course of US history.

With that in mind – you might be tempted to think that perhaps a business blog, properly launched and leveraged,  might actually be a powerful and effective of a marketing tool.   Maybe your buisness blog won’t change the course of history – but it might just change the course of your business.

Disappointing customers without remorse – until the handouts begin

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Wouldn’t it be nice if you could ignore, abuse and ridicule your customers and still make money?  Usually, the ability to “ignore” the economic realities of doing business is limited to giant corporations who keep running in spite of themselves.  However, a recent phenomenon is for these giant corporations to come begging for taxpayer money because they’re just too important to our economy to allow them to “go under”.

Reuters reported yesterday that GM has issued a HUGE “mea culpa” to the “American People” in yet another effort to secure more money from the government.   In the article at Reuters, GM says it “disappointed” and “betrayed” consumers:

General Motors Corp on Monday unveiled an unusually frank advertisement acknowledging it had “disappointed” and sometimes even “betrayed” American consumers as it lobbies to clinch the federal aid it needs to stay afloat into next month.

The print advertisement marked a sharp break from GM’s public stance of just several weeks ago when it sought to justify its bid for a U.S. government on the grounds that the credit crisis had undermined its business in ways executives could never have foreseen.

It also came as Chief Executive Rick Wagoner, who has led the automaker since 2000, faces new pressure to step aside as GM seeks up to $18 billion in federal funding.

GM has been making repeated trips to the government hand out trough.  Briggs Armstrong in a post at the Ludwig von Mises Institute blog points out:

It should not be forgotten that in September of 2008, Congress gave the “big three” automakers a loan totaling $25 billion. Now they are back. This time they say that with a mere $50 billion they can turn things around and become profitable in the future.

I can’t remember a time when GM cared about their pleasing their customers.   In the words of just about every business analyst on the planet – the reason GM isn’t making any  money is they aren’t making cars anyone wants to buy!

I love working with small business owners and this is why – because small business owners “get it”.  If they don’t, they’re bankrupt and broke in no time.  Meanwhile, it is going to literally take an act of Congress for GM execs to get it through their collective thick corporate heads that they need to start building cars people WANT to buy.

Remember the blockbuster movie, Transformers – released way back in 2007?  Remember the ultra HOT Camaro featured in the movie?  Remember?  Gosh – I remember.  I haven’t been passionate about a car in DECADES, yet I really wanted to own a new Camaro when I walked out of that movie.  It’s a good thing I couldn’t walk out of the theater and buy one because there would be on sitting in my driveway right now if GM had played their cards right.

Instead 2009 is almost upon us and  you may be able to finally drive one next spring.  That’s right – spring of  2009.   Oh, and instead of featuring the 2010 Camaro in another blockbuster action movie (been there, done that) , the dolts in charge of marketing are giving you a sneak peak during a third rate network television show “My Own Worst Enemy”.  (Is that show still ON television?  Hasn’t it been cancelled yet?)

Can you imagine Naomi Dunford promoting her Online Business School and then waiting two YEARS to release it for sale?  If Naomi were to adopt such an idiotic marketing strategy, you’d seriously doubt her marketing acumen – yet that’s the rule rather than the exception over at GM.

Long live small business!  Long live the small business owners who “get it” and who product products and services that people want to buy!

Small Business Marketing Strategy & Tactics

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Most of the posts Steps to Starting a Small Business series focus upon the marketing of your small business.  If you’re an aspiring entrepreneur, the focus on marketing as an essential part of starting a small business may come as a huge disappointment to you.  If you were hoping to start a small business without spending a majority of your time and effort on marketing your business – um, well consider this your wake up call.

Creating a strategic marketing strategy is perhaps the most ESSENTIAL step in starting a small business.   Creating a marketing strategy is different than chasing marketing tactics.  A marketing strategy is essentially knowing what you’re selling and to whom you’d like to sell it.  A marketing TACTIC is nothing more than a way in which you’re going to achieve your marketing strategy.

Your marketing strategy is knowing what you’re selling and to whom you’re selling it to.  I know this sounds “simplistic” but it’s really surprising how often this most basic of business building steps is overlooked. (For an amusing illustration of a BIG company who really missed the mark on this one – read Cath Lawson’s Does Your Business Really Understand People? )

Which brings me to this essential point:

A blog can be a GREAT marketing “tactic” but it’s a LOUSY marketing strategy!

It’s why so many small businesses create websites that do absolutely nothing!  A website, whether it’s a blog or any other style of website, must be a marketing tool which you put to use to achieve your marketing strategy.

When you know WHO you want to sell your products or services to, then you need to find a way to let the people you want to sell your products and services to know that you have what they want or need.    That’s where a blog or website comes in!

In creating a blog or website that works, begin by finding a keyword combination people are actually USING to find products and services you offer.

This is frequently where the wheels fall off for most small business owners.    If you don’t know WHO your target audience is, there’s no way of knowing WHAT WORDS they are using to find solutions on the internet.

Talk about trying to find a needle in the haystack – try finding keywords when you don’t have a target audience in mind!

That’s why choosing a target audience is an essential part of crafting your marketing strategy.  When you have a target audience in mind,  you can then set out to find the words those people are using to find information on the internet.

Now comes the “easy” part.  This is where you create posts for your blog with your target audience in mind where you talk about the problems they’re having and how YOU offer the solutions they need.

Yes, marketing a small business is REALLY that “simple” – but if you’ve tried it you know that while it’s simple, it’s anything but “easy”.

If you’re struggling with the task of marketing your small business, it’s probably because you don’t have a marketing strategy in place.   I know, I know – you didn’t start your [insert your business product or service] because you wanted to spend your time on “marketing”.   However, marketing is an essential step to starting a small business.