Include Joint Ventures in Your Small Business Target Marketing For Dramatic Profit Increases

What is consistently rated as one of the most effective small business target marketing strategies? Without a doubt it is the Joint Venture (JV), also known as a strategic alliance. Target, or niche marketing means that you are marketing directly to the prospect most likely to buy your product or service. Your JV strategy can be the ultimate form of target marketing since you are using the targeted customer and prospect list of another business owner.The JV and strategic alliance are so popular and profitable because they leverage the assets (customer list, goodwill, relationship, etc.) your partner has developed with their client and prospect base. Nearly all potential buyers (business and consumer) prefer to do business with a company, firm or practice for which they have a degree of trust.Marketing legend Dan Kennedy likes to say that we are all walking around holding an umbilical cord saying “plug me in and tell me what to do.” Whether you are looking for a place to buy a hot dog, to buy a yacht, or looking for a brain surgeon or a new church in your community, you are looking for someone to recommend where you should go to obtain the product, service or advice.Don’t confuse the JV with referrals. Referrals are great for new business and are an effective small business target marketing strategy but generally are given only one or two at a time. Referrals can also dry up if you are not diligent about keeping in touch with your clients and letting them know how much you appreciate and value their business.JV’s can be as simple as selecting a retail partner and issuing a joint coupon to one another’s client base. They can also be very complex, multi-million dollar deals between large companies. American Express is an example of a very large and sophisticated company that partners with several other large businesses to leverage the client lists of both firms. If you have one of their cards, you have received numerous calls and mailers from them endorsing their JV partners. The partners get the implied endorsement of a blue chip company like Amex and Amex gets increased card purchases as you use the card to buy the recommended partners products.Now that you’ve decided to add the JV to your small business marketing tools, where do you start? The first thing you must do is to create a demographic profile of your target client. What else do they buy and where do they buy it? For example, Paul Flood Marketing, which is my company, implements a unique and non-traditional marketing system in small businesses and I guarantee profit increases of 25% or more in as little as 90 days. As the old saying goes, “Fish where the fish are,” so I have partnered with other small business consultants, primarily CPA’s and small business attorneys, who have endorsed my services to their clients.If I had tried to contact many of these business owners cold, I would have probably been turned away but the endorsement of my trusted partners established trust. This is the trust you want to leverage with your potential JV partners.Armed with the list of potential partners, you formulate your contact strategy. You could try writing letters but I am a strong believer in just picking up the phone and saying to the owner, “Hi, I am a local business owner and I have an idea that could help us both dramatically increase our sales and profits and I’d like to talk with you about it. Do you have a minute so I can explain the concept?Great, if makes sense for us to talk in more depth, we can arrange a time to get together.” The thing I like about the phone is that I can immediately get a feel about the business and the person in just a couple of minutes.When you first meet, you will most likely need to explain how the Joint Venture small business target marketing strategy works and how it will benefit both of your businesses. Most small business owners are only familiar with traditional marketing or networking so it may take a bit of explaining to get the concept across.The most common objection you will encounter is the trust factor so bring testimonials and samples of your product, service, practice or whatever you are selling to the meeting. You need to show why the other business owner person know they can trust you and your business? People are naturally wary (as they should be) about referring others to their clients because their reputation is on the line, as is yours.Always conduct due diligence. Talk to a couple of their clients and understand their product and commitment to quality service. If you feel uncomfortable at the beginning, bow out of the relationship gracefully. There’s no sense in adding aggravation to your life!The other objection is the confidentiality of av client list, but that is easily overcome by offering to mail your endorsement of your partner to your list and they mail their endorsement of you to their list. What if you don’t have a list? Pay for a mailing to your partner’s list and pay them a commission or finder’s fee for leads you convert to customers. There are some professions that are prevented from paying or receiving finder’s fees so if this applies to you, you need to investigate alternatives.What is the simplest JV strategy? Each partner mails an endorsement of the other’s business to their list with a description of the benefits of doing business with them and why they are recommending one another. It’s that simple. The key to success of the JV as your small business target marketing strategy is that you and your partners must be proactive in promoting one another and in managing the relationship. As the person who originated the partnership, take control and action to make it happen. If you have a partner who isn’t committed, drop them and find another.When you are actively using the JV as a small business marketing tool, you will be amazed at the results you can achieve in a relatively short period of time. Of course, as with any other business strategy, there are experts like myself who can be delivering profits while you are attempting to find your first partner. The key is to make the decision to make it happen, to leverage your contacts and your list and get started!

What is Your Marketing IQ?

What is your marketing IQ? Are you in need of a little help or are you marketing brilliantly? Take the following quick and easy (not to mention enlightening) quiz and find out!

1. What is the best competitive advantage that any business can promote?

a. quality

b. service

c. price

d. None of the above; they are all poor choices

2. What is the most important factor when identifying your market niche?

a. Who you are

b. Demographic data

c. Psycographic data

d. Past economic trends within the targeted niche

3. What are two of the six categories of totally integrated marketing?

a. Advertising and Direct Mail

b. Networking and Personal Marketing

c. Business Communications and Pricing

d. Customer Development and Promotions

4. Of the six marketing categories, how many should you be working at any one time?

a. one

b. two

c. four

d. six

5. How important is the “creative element” in advertising?

a. Most important – its what gets noticed!
b. Less than 10% of the impact of an ad is in its creativity

c. There are no studies done; we don’t know the answer so we have to guess

d. Of medium importance; about 50% of the impact of an ad is in its creative factor

. When implementing a direct mail campaign, what is most important?

a. Who you send it to (e.g., the list)

b. How many times you send it

c. The offer you make in your direct mail piece

d. None of the above – they are all equally important!

7. What is the most effective way to start a 1 or 2 person business?

a. advertising

b. networking

c. part-time

d. none of the above

8. What is history’s most effective direct mail piece and why?

a. Publisher’s Clearing House; it has a highly valuable give-away prize

b. Wall Street Journal; it talks about the two brothers who started the paper

c. Unknown; it cannot be measured because you can’t directly track advertising results

d. Time-Life Books direct mail campaign; it has both consistent reach and frequency

9. What two things make a good headline?

a. Large, offset letters and a powerful statement

b. White letters in a black box and a question

c. A powerful statement and a “yes” question

d. There are no guidelines, that’s why its difficult to craft a good headline

10. What is the primary purpose of marketing?

a. “Getting your company name out there”

b. Generating leads

c. Generating profits

d. Generating sales

Answers
Score one point for each correct answer.

1.d;87% of all businesses promote quality, service, or price as their competitive advantage. Because they do, it is ineffective and you must select another aspect of your business to function as your competitive advantage.

2.a;in almost all cases “who you are” is the most important aspect of determining your market niche; for instance, if you are a CPA and your passionate hobby is riding motorcycles, you would be well advised to target businesses in the motorcycle industry (as opposed to doctors, daycare centers, or other options). Why? Because within the motorcycle industry, you have the asset of “instant rapport”; you “walk their walk, you can talk their talk”. (Of course you needn’t turn away other business; your marketing dollars are simply spent within your natural market niche).

3.d;customer Development and Promotions are two of the six totally integrated Brilliant Marketing categories.

4.d; six – if you had six horses and you wanted to get from Denver to San Diego, you wouldn’t put five horses in the back of the wagon, run one to death, and then put him away and run the next one to death; you’d put all six out in front, to synergistically get you where you are going (efficiently and expediently).

5.b; less than 10% of the impact of any ad is in its creativity (it may get noticed, but if it’s difficult to read, or if it doesn’t focus on the sell, then it doesn’t do you any good!)

6.a; although d would’ve made a good answer (they are all important), a is technically the correct answer. The list (who you send it to) accounts for up to 60% of the success of a direct mail campaign.

7.b;networking (and it makes perfect sense when you know that 87% of all business is based on repeat or referred transactions).

8.b;the Wall Street Journal created the most successful direct mail piece; it’s success is based on the element of rapport which it establishes when discussing the “two brothers”.

9.c;a strong headline is either a powerful statement (STOP THE PAIN) or a “yes” question (important for psychological buy-in).

10.c;never ever forget, marketing has one purpose… to
generate profits!

Analysis

10 Congratulations! You are Brilliant!

8-9 Excellent! You understand marketing exceptionally well.

5-7 Good; but you will most certainly benefit from additional marketing knowledge; more than likely, you have fallen prey to common marketing myths. Learning the truth will make a huge difference in your marketing results.

How To Make Money In Direct Mail, Review

Extremely TargetedImmediate snail mail advertising is hugely targeted, which is a big edge regarding businesses which understand their particular target market. Quite simply, businesses can mail immediate direct mail pieces to distinct groups, dependent on crucial demographics, including sex, age, earnings, home dimension as well as vocation.Easy to Trailimmediate direct mail advertising and marketing can also be an easy task to trail, that allows an organization for you to effortlessly work out their particular ROI (ROI). Businesses which send immediate direct mail typically contain a purchase style as well as application. If the organization creates sales opportunities as well as orders placed simply by mail it is very easy to see that those sales have come from direct mail marketing. This lets you keep total track of what’s working and what isn’t. Because of this the corporation can understand exactly which mail elicited the desired result. The company may then establish the amount of gross sales through the mailing, take away charges as well as determine it is earnings.Extremely BeneficialDirect mail advertising and marketing provides viewers with a large amount of information about a company contrary to other styles associated with advertising and marketing. Businesses which send messages via post usually will include a gross sales letter and guides to their business or service, as well as various ways to purchase a product. Your gross sales letter typically updates your prospects to the fact that a company is doing very well and worth their time. Businesses typically offer an image as well as comprehensive information regarding your services or products in the guide. Additionally, the cost is often integrated for the purchase style, as well as in the gross sales letter. Basically, organization usually employs your gross sales letter to make available particular deals to entice new customers.CostlyOne of the major disadvantages with direct mail advertising and marketing is cost. Sending out marketing letters to a huge number of homes quickly turns into big money that you’re shelling out. A lot of modest businesses send hundreds of thousands of pieces every thirty days. Postage as well as stamping can be extremely costly. Businesses which utilize direct mail depend on the repeat business of customers. In this way they don’t need to send out a huge amount of mail over and over again. They can send one set and gain a large number of loyal customers likely to use their services frequently.Largely UnreadNearly 45 percent of direct mail recipients dispose of their particular “junk mail” without studying the item. Furthermore, only one percent of recipients interact to with their mail immediately. It may be months before recipients find the direct mail your company sent out and enquires about its products. Many people keep information on companies that might be of use to them at a later date. This is great for future business but it does mean it’s very difficult to get immediate results from the direct mail campaign. For this reason it really is consequently vital to design and style as well as write a very convincing immediate piece, then mail the item towards appropriate market.